SOURCE: MG Retailer | Danny Reed | June 19, 2019
Technology such as surveillance systems and POS/inventory managers clearly are essential in helping to reduce theft and maximize profits. According to Veronica Espinoza, human resources business partner at workforce management firm Wurk, operational procedures should be implemented as well. “Ensure procedures are in place for inventory and cash management, as well as register audits,” she said. Also, if your budtenders accept tips, define when these gratuities are counted, how they are divided, and who is overseeing the process.”
Theft requires both motivation and ability. Before an employee ever works on the dispensary floor, procedures can be implemented to reduce the likelihood of conscience crises. “A strong onboarding process can create buy-in for new employees,” Espinoza said. “This is a crucial time to convey the importance of compliance and reiterate your core values so you can help establish an employee’s dedication to the success of the business.”
Although typical theft involves cash, product, or company resources, Espinoza pointed out another problematic area: time. “Operators can use people data from technology systems to gain insight on employee time theft [people regularly clocking-in late, taking longer breaks, clocking-out early] and to get ahead of possible turnover,” Espinoza explained. In fact, the American Payroll Association estimates time-clock shenanigans cost businesses 1.5 percent to 5 percent of gross payroll.
Of course, the best defensive efforts won’t ward off all unfortunate events. Espinoza said management should act quickly when problems develop. “Any violation of company policy must be handled swiftly and professionally,” she said. “It’s important to carry out a thorough investigation and consistently follow policies [that are] in place. Document details of the occurrence and disciplinary action taken on the employee record.”