Shoplifters aren’t the only thieves who can spoil a retailer’s holiday season. Employee theft can be a bottom-line wrecker. According to the 30^th Annual Retail Theft Survey  of 21 large retailers conducted by Jack L. Hayes International, 40,286 dishonest employees were apprehended in 2017. Over $38 million was recovered from employee apprehensions—and that’s just from 21 retailers.

Here are tips to keep employees honest.

–Regularly track inventory and have your accounting firm look for transaction discrepancies. Unscrupulous employees pilfer items by throwing them in an outside trash can to be retrieved later. Or, they may work with an outside partner and only ring up a portion of the items the accomplice presents at the checkout counter.

–Install video surveillance cameras at point-of-sale locations and around the store. Have retail security staff monitor the feeds looking for illegal employee activity.

–Require employees to place personal items such as handbags in locked storage boxes in the breakroom.

–Hold fraud prevention classes that cover employee theft and shoplifting. The classes will re-enforce behavior by honest employees and show dishonest employees that you take security seriously.

–Hire retail store security guards. Besides their other duties, guards can monitor the store before, during and after hours. They can patrol the perimeter of the store to make sure employees are not leaving with stolen items.

–Conduct regular employee background checks—not just as part of the hiring process, but on a yearly basis.