Used auto dealers often focus so much on protecting their business from external threats that they overlook the potential risks posed by their own employees. Still, commercial crime and employee dishonesty happen in every industry, and this includes used auto dealers who may be your clients. For this reason, we will share actionable steps auto dealers can take to identify a potentially dishonest employee and how they can handle employee dishonesty once it occurs.
How to Prevent Crime and Employee Dishonesty in the Workplace
To combat crime and employee dishonesty effectively, used auto dealers must focus on prevention as the best defense. Understanding the most prevalent types of employee crime is critical to proactively addressing potential threats, which commonly include:
- Cash theft: Cash theft typically occurs in retail environments where employees surreptitiously pocket money from cash registers. Another tactic is charging customers more than the actual price and keeping the difference for personal gain.
- Information theft: Employees may unlawfully access and take valuable company data, such as customer lists or proprietary information. They can then exploit this stolen information for personal benefit or share it with competitors.
- Fraud: Fraud can manifest in various forms, including payroll fraud, time-clock fraud, improper car dealings, lending violations, and more. Employees may manipulate payroll records, falsify timekeeping entries, fabricate or exaggerate workplace injuries, or submit false reimbursement claims.
- Supply and merchandise theft: Although seemingly minor, taking company equipment, supplies, or merchandise can accumulate high costs over time.
Enforce Access Restrictions and Regular Audits
An effective way for used auto dealers to decrease crime risk is by implementing access restrictions. By ensuring that no employee has sole access to sensitive materials, such as cash or expensive products, and requiring authentication from at least two employees for processes involving transferring such materials, auto dealers can significantly reduce the possibility of theft.
To put these access limitations into practice, businesses can invest in technologies like access control systems, CCTV surveillance, and digital authentication methods. There should also be regular audits to ensure compliance and identify any potential vulnerabilities.
Be Thorough When Hiring
Although it’s easier said than done, it’s crucial to proactively identify individuals with questionable character traits before they become company employees. One effective approach is to develop a culture checklist and craft specific interview questions that directly address the business’s core values.
Business owners should also conduct financial background checks, criminal conviction checks, reference checks, and other pre-employment checks to ensure the selection of trustworthy applicants.
Confront the Situation
Employee misconduct can erode trust among team members and customers. By promptly confronting and addressing these issues, auto dealerships can demonstrate their commitment to maintaining high integrity and professionalism. Subsequently, it will help limit the chances of crime and employee dishonesty bringing down a dealership.
About K2 Insurance Services
K2 Insurance Services strives to create a leading underwriting and distribution franchise in the program insurance market. We’ve bridged the gap between agents and client payments with our efficient ACH payment system. Partnering with us gives agents the advantage of ACH payment capability that allows for direct billing through the firm. Call us today at (866) 429-1638 to find out how you could partner with K2 so you could offer top-tier insurance coverages and modern features to your clients.
