The construction sector is a wealthy industry with healthy businesses. Building a home costs around $300,000, and firms usually get around 10%-20% of that project. That’s a huge profit margin, especially when the firm knows what it’s doing. However, construction firms don’t only build homes; they also build buildings as well.
A singular building can help a firm earn a million dollars in just a year. Multiple buildings can help a firm rake in billions. With such high stakes, it’s no wonder that theft happens so in construction firms. Employee theft is one of the most common problems that construction firms face.
Employee theft is a huge deal, especially for trillion-dollar industries. It’s the main reason for 33% of bankruptcies in the country. It also causes billions of dollars in damages every year.
There are two types of employee theft: internal and external. Internal theft is when an employee steals from the company they work for. External theft is when an employee steals from a client or customer.
Both types of employee theft are serious problems, but construction firms should be more concerned with internal theft. That’s because construction firms deal with large amounts of money and materials. As a result, a construction firm can lose millions of dollars in a single day if employee theft isn’t dealt with quickly and efficiently.
Here are five ways to reduce employee theft in your construction firm:
Implement Security Policies
The first way to reduce employee theft is to implement security policies. These policies should be designed to protect the company’s money and materials. They should also be designed to deter employees from stealing.
Some security policies that construction firms can implement include:
- Requiring employees to clock in and out
- Prohibiting employees from being alone in certain areas
- Requiring employees to wear ID badges
Security policies are your primary defense against employee theft. They should be designed to make it difficult for employees to steal from the company. However, it won’t deter them. If you want to prevent them from stealing, then you should consider investing in security technologies.
Invest in Security Technologies
The second way to reduce employee theft is to invest in security technologies because these technologies deter and detect employee theft. One of the most robust security technologies is surveillance systems.
Surveillance systems are designed to monitor employee behavior. You can use them to track employee movements and activities. You can also use them to identify suspicious behavior. These systems are the best way to deter employee and internal thefts in your company. However, you will need a GPS tracker when it comes to million-dollar construction equipment.
Construction equipment can cost firm thousands of dollars. Although not many of your employees would ever dare steal it, it’s still possible to happen. A GPS tracker for construction equipment can significantly reduce this from happening. Moreover, it’s helpful as it can track where the equipment is at all times, so you don’t have to worry about it being stolen or misplaced.
GPS trackers are a great way to reduce employee theft in your construction firm. They’re also a great way to keep track of your company’s assets.
The third way to reduce employee theft in your construction firm is to hold employees accountable for their actions. Employees should know they’ll be held responsible if they steal from the company.
You can make employees more accountable for their actions by having contracts.
Employee contracts that dictate the consequences of stealing can effectively deter employee theft. In addition, these contracts should be designed to clarify that employees will be fired if caught stealing.
You can also make employees more accountable by conducting regular audits.
Regular audits are a great way to keep track of your company’s finances. They can also help you identify employees who may be stealing from the company.
Random searches are another way to make employees accountable for their actions. Your firm can conduct these searches regularly. However, they should be unexpected and unannounced.
Random searches are a great way to deter employee theft in your construction firms. However, they should only be conducted if you have a good reason to believe that an employee is stealing from the company.
Remember that random searches can affect your employee’s privacy. You don’t want them to feel like they’re being constantly watched.
Employee theft can cost your construction firm a lot of money. However, implementing these five options can reduce employee theft and keep your company’s finances safe. In addition, it’ll help you save money in the long run.