Employee Theft from a retail store is a term that is used when an employee steals merchandise, food, cash, or supplies while on the job. However, in the eyes of the law, employee theft is just theft…the elements of the crime are identical. To commit theft, the employee must “intend” to permanently deprive their employer of the value of the item stolen.

Employee theft can occur just like shoplifting by concealing merchandise in a purse, pocket, or bag and removing it from the store. It can also occur by stealing cash, allowing others to steal merchandise, eating food, and by refund, discounts credit card, or Cq fraud. Employee theft can sometimes be charged as embezzlement due to the trusted fiduciary status of the employee. All of these methods lead to loss of inventory (shrinkage) and/or profit for the merchant.

Employee theft is an insidious crime because the merchant is paying a wage and benefits to the thief on top of paying for the cost of their dishonestly. Studies have shown that employees can do a lot more damage than shoplifters because they are trusted and have an insider’s knowledge of store security measures.

Employee Theft Profile

There is no real physical profile for a dishonest employee. Dishonest employees come in all shapes, sizes, ages, sexes, ethic backgrounds, religions, levels of education, and economic status. You simply cannot accurately determine who is likely to steal based on their demographic status alone. However, an employer can make reasonable assessments based on their conduct, integrity, and judgment. A person’s past conduct, integrity, and judgment often provides the best indication of their future behavior.

Retail store employees have a constant opportunity to steal cash or merchandise…all they need is the desire and sufficient motivation to do so. What keeps most employees honest is moral character, loyalty, respect for the law and their employer, and the desire to be viewed as trustworthy. Studies support this by proving that shrinkage is significantly less in stores with reduced employee turnover and fewer part-time workers.

For others, the only barrier to dishonesty is the fear of getting caught. The employee thief risks getting sacked, being arrested, jailed, and paying restitution. The criminal record and bad job reference will have a compounding effect that will follow them for years. Merchants must not be sending a clear message to their employees because most employee thieves that I have encounterd never thought they would be caught.