Using a behavior‐based method to identify and reduce employee theft

The consequences of employee theft have a profound impact on employers, employees, consumers, and society. Estimates of employee theft range from $40 to $400 billion a year in the USA alone. Although identifying employee theft is difficult, certain behavioral‐based studies have been able to separate employee theft from customer theft (shoplifting). The current study extends a behavioral‐based technique (posting) by posting total monetary loss and total items missing rather than posting the individual targeted items as in the prior studies. The study was conducted in an retail setting (one drug store in a large chain) for a 12‐week period. Data demonstrated posting was able to lower the amount of employee theft while also providing the ability to separate most of the losses caused by employee theft versus shoplifting. Furthermore, the results appear to reinforce the hypothesis that survey data alone may underestimate the actual amount of employee theft.