Edmunds: Workplace theft? Act fast, but carefully

Gladys, I own a grocery store that also has an adjoining restaurant area. Recently one of my employees, speaking confidentially, brought it to my attention that some of the other employees are eating meals without paying and worse, they are ringing up the groceries of friends and family members without charging the full prices of things. I was told that one employee rang up $50.00 for groceries and the price should have been twice that amount. I allow a substantial fifty percent discount for employees to eat in the restaurant. During a staff meeting I said that anyone caught stealing would be fired. That threat did no good. So what is the best way to deal with this problem? -- K.V.

Begin dealing with the problem by taking a closer look at the employee who is "speaking confidentially" to you about the other employees. What are his motives? Why is he reporting on the activities of others? What evidence do you have that you are being told the truth? It is reasonable to question informants who are quick to bring bad news, or to snitch on others and then ask not expose them as your source of information.

Now let's assume your employees are eating without paying and giving away the store. Before you rush off to fire them consider why they would do such a thing. There's always a reason why people do what they do.

I recall once having a client who owned a limo service. He called me when he started having trouble with customers either not returning or large companies cancelling their contract with him. Through my research I learned that the clients were upset because the cars were no longer clean and smelled bad.

As my investigation reached the drivers I learned that they liked working there but had not had a raise in five years. And yet each year the owner would increase the cost of the service to the client. And when they asked for a pay increase, it was denied. They said they had grown weary of watching the owner take long elaborate vacations, brag about his kids being in private school and see his smiling face in the newspapers being hailed as a generous benefactor to charity. In addition they were required to wear uniforms and the boss had increased the cost uniforms. And they were angry and wanted to get even, and felt that they were not being respected for their dedication.

One of the employees got an idea to get back at the owner by reducing his business. The other employees were all in favor of a retaliation. The employee had a cat that he said was urinating on his kid's sneakers and in some cases their backpacks. So as his wife replaced these items the limo driver would bring these awful smelling things to work and place them in the back of the limos so that rider could get a whiff of the foul odor. They were attacking their employer for not listening to them.

Now, I certainly don't agree with the way these folks handled their grievance. Nor do I agree that the owner was handling things well. A couple of important qualities were missing on both sides; respect and trust. Mutual respect and trust should be at the foundation for a business to continue to thrive.

You must get to the bottom of your problem. I doubt that an employee will admit to you that they are not charging the proper amount for food or that they are eating at your expense. If your accounting books and inventory control are in order you will be able to tell if groceries are flying out the door without being paid for.

Perhaps it's time to call in a consultant who specializes in this type of problem solving to help clear the situation up. A good consultant knows how to use strategies that will uncover what is really going on.

But above all do not take another employee's word without absolute evidence.

Gladys Edmunds, founder of Edmunds Travel Consultants in Pittsburgh, is an author and coach/consultant in business development. Her column appears Wednesdays. E-mail her at gladys@gladysedmunds.com. An archive of her columns is here. Her website is gladysedmunds.com.