10. Investigate
9. Audits
8. Hotline
7. Effective screening
6. Review building security
5. Evaluate Management Controls on an annual basis
4. Train Managers
Help managers recognize red flags (things out of ordinary that are worth investigating, such as a minimum wage employee suddenly driving a $40,000.00 truck). Keep an eye not only on employee actions, but also keep an eye on computer security and vendors.
If the same person is always responsible for payroll, or inventory, there is a higher chance for pilferage. Rotating responsibilities enables other employees to recognize anomalies and bring it to your attention. Spot check among managers that reports are reconciled and work has actually been done. This eliminates kickbacks.
If you don’t do anything about it, you are encouraging theft to happen again, not only by the person who stole this time, but by every other employee as well. Managers have a responsibility to respond quickly before the behavior escalates.
3. Written Policy- as part of handbook or as a separate written policy.
This communicates to employees that you value ethical behavior.
Using clear Language (not legalese), define what your dealership considers theft and fraud, and set the tone for the entire organization. For example, define how or if employees can use the shop for personal gain, or purchase parts using the dealership discount.
The policy should be Concise (less than two pages), so that employees know what behaviors are expected of them. Clearly define what is and is not acceptable, and keep the fraud and theft prevention policy separate from the ethics policy (core values).
Define Consequences for failure to comply with the policy. For example, if your policy is zero tolerance, then it needs to explain that termination is the consequence.
Make sure all employees acknowledge that they are aware of the policy. This acknowledgement should be in writing or digitally stored in a HR system like KPA’s HR Management System. This acknowledgement does two things: It is a record that employees have received the policy, and it provides a legal defense in the event that an employee fails to comply with the policy.
