So far I’ve presented six strategies for dealing with the problem of employee theft: - Destroy all signature stamps and vow to never use them again
- Limit check writing authority to the owner(s)
- Limit depositing authority of staff and divide the duty between multiple employees with built in checks and balances
- Hire a fake consultant to review your processes to shake the tree; if something shakes out hire Waugoo Consulting Group to investigate the problems and create a plan to reduce your exposure to employee theft
- Computerize your inventory system and take physical inventory more often than annually
- Consider employing a video security system
- Conduct semi-annual vendor checks
- Secret shop the practice with marked cash
- Password protect the owners computer
- Utilize a day sheet
- Protect lines of credit and credit card access
- Make sure every patient transaction gets a receipt
This blog will continue to present steps that can help reduce your risk of the very real problem of employee theft. As I’ve said before, keep in mind that each tactic works on its own but is exponentially more effective when paired with an overall strategy employing multiple approaches. (The cut and paste function is a great time saver – can you tell?)
Hire an Actual Consultant
You didn’t think that I would skip this one, did you? The single best way to protect your business is to have an outside expert create a long term theft prevention strategy that you agree to stick to (just like in patient care, compliance is the single biggest hindrance to successful consultation results.) Consultants have many advantages over attempting to do these things on your own. I can not speak to other experts fees but at the time of publication Waugoo Consulting Groups fees for theft prevention consults are $4989. This includes an in depth analysis of current data to attempt to determine if theft is occurring now, the development of a comprehensive plan to prevent and identify theft in the future, and a review approximately a year later to fine tune the processes put in place. How many stolen frames, embezzled monies, and hijacked lines of credit will it take to cost you over $5,000 in your business? It is a smart decision in most cases to hire outside help. One other way consultants can help is in providing audits to identify trends, practices, or other data that suggest increased risk or likelihood of theft. These audits are not as comprehensive as a full consult but they provide the business that creates their own theft prevention strategies an opportunity to evaluate the results at a lower fee. These audits range from $1489 to $2989 through Waugoo. The audits also put real fear into the minds of employees that might be tempted to steal from your business. In my experience, the single best way to reduce theft is to create a realistic fear of being caught. Outside experts provide the greatest fear for the buck.
Routine Critical Analysis of Practice Financial Results
You should be doing this anyway. We can argue the merits of monthly vs. quarterly analysis but that is not important with respect to theft analysis. The key here is to search for trends and unanticipated changes in trends. Keep in mind that doing this will have many benefits above and beyond the theft issue.
Reduce Your Inventory Levels
I routinely see practices that have 1200 frames in their optical (along with 300 strategically hidden in the overstock cabinet.) The more inventory you have the greater the opportunity for employees and patients to steal from you. This strategy is so simple it escapes the attention of most practice owners. If you have less stuff your exposure to theft is less. There are numerous other advantages to lower levels of inventory including increased ease in taking routine inventories and improved business liquidity.
Whew. I never expected this theft blog “thing” to become a six part series. I’ve received numerous comments and questions from readers along the way that helped shaped these blogs and I want to thank you for your contributions. Now on to the next business topic…
Le Meas,
John G. McDaniel, OD, MLHR
President/Founder
Waugoo Consulting Group, LLC
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