Month: May 2023

Employee theft has jumped by a fifth (19%) as the rising cost of living triggers a wave of workplace crime, new data suggests.  

National figures based on Freedom of Information data from 43 police forces in England and Wales.  Reveals almost 6,000 workers were caught stealing from their employer in 2022, up from 5,000 the year before. This amounts to nearly 500 incidents every month. 

The biggest increase in thefts occurred in Lincolnshire, up from 40 to 71 incidents – a rise of 44%.  By police force, the highest rate of employee theft was recorded in Northamptonshire, with 43 incidents per 100,000 people, while the lowest was found in Dorset. 

Ranges of employee theft

Employee theft ranges from petty pilfering of office supplies to the theft of data and embezzlement of company funds. 

Recent claims include a £150,000 theft by a ring of employees at a food manufacturer and a £50,000 claim from a double-glazing firm defrauded by its finance manager.

As cost-of-living pressures mount, employee theft has significantly increased, suggesting some workers could be turning to desperate measures to make ends meet. These consequences of employee theft can be devastating for companies, resulting in reduced profits, lower staff morale and in extreme cases, even bankruptcy. Consumers also lose out through higher prices.

No business is immune to theft in the workplace, which can go undetected for years, and occur at all levels. Unless firms have the right protection in place, they have little chance of recovering stolen cash and goods, and may face other expenses, such as regulatory fines.  

Reducing the risk

Firms can reduce the risk of employee theft by implementing robust payment controls, regular audits, and a positive work culture.

Fraudsters are using ever more sophisticated techniques to trick employees into divulging sensitive information. So making it crucial that employers have robust security measures in place, alongside effective cyber awareness training to help staff detect and avoid these scams.

A recent YouGov poll showed that staff well-being is falling down the list of priorities for employers, with statistics showing:

• only a third of employers see improving staff morale as their responsibility;
• one in four employers spend nothing on employee well-being or mental health;
• 58% spend less than £100 per employee on well-being a year.

The survey of 1009 British companies and 2009 staff, was conducted last December and revealed that most employers saw attracting and retaining talent, and improving productivity, as their main priority.

Since the pandemic, most staff said they had returned to normal working practices, with fewer than half reporting that they still had the option of flexible working, including being able to work from home and to choose when they work.

Only 2% of employees said they felt confident about going to their boss if they had a problem in their personal life or with their finances, whilst only 1% would talk to a work colleague. More people said they would research their issue online before going to their line manager with an issue.

The survey followed a publication by the Joseph Rowntree Foundation, which showed worrying levels of in-work poverty. It said employers should be doing more to ease the pressure on staff facing financial difficulties, including offering flexible working and more secure shifts, creating a compassionate workplace culture, and signposting employees to specialist support. Employers who don’t invest in employee wellbeing may be missing out on the productivity benefits it can provide.

The survey showed that the size of businesses, where they are in the country, and what sector they are in, determined how much, if any, support employers provided. Age also played a part, with demand for support with the cost of living most marked among young employees.

While the demand for mental health and well-being services among staff was high, particularly for stress and anxiety and the cost-of-living crisis, a significant number of workers said they received little or no support from bosses, or the services that were provided were not always of value to them.

By listening to, and understanding what employees need, companies can start to build stronger, more empathetic and productive work environments. Access to well-being support should not be a lottery or a privilege.