Cash shrinking is a matter of concern for retail houses, where there's a continuous inflow of cash. Stores do lose cash as a result of theft, and if we particularly talk about the U.S. market, there are more cases of internal theft, which is one of the biggest reasons for cash shrinkage. A report by Global Retail Theft Barometer revealed that cash shrinkage is costing retailers approximately $123.4bn annually. Businesses are reluctant to acknowledge that they have any sort of problem with employee theft. They believe that reporting such incidents spoil the brand image, lower the morale of the employees and impact the rapport with the investors. An effective way to overcome the issue of shrinkage is installing cash dispensing safes and other cash counting products. Let's read more about the ways a business could handle losses due to cash shrinkage:
Switch to automated cash management products
As discussed above, using cash dispensing safes and other automated cash management products makes it difficult for the thieves to escape untraced. Apart from reducing the incidents of theft, cash management products also increase the productivity of the staff, reduce the chances of human errors and make the entire cash transaction and management process efficient.
Introduce cash management process
A quick and fully traceable cash management process is beneficial for the staff and business. When the process is strict and backed up by smart cash management process, it ensures that employees have lesser chances to steal cash. Make sure that the cash management process doesn't have any scope for use of slush funds or similar activities as these are harder to investigate, and there are more chances of business incurring losses.
Improve security
The most obvious solution to tackle cash shrinkage due to employee theft is to upgrade the security. Install EAS tags and CCTV cameras, and have in-store security guards at stores, back office, and warehouses. Do not hesitate to make staff search mandatory at the stores. Though these are some smart and effective ways to prevent internal theft, don’t assume these to be the ultimate way to put a halt on cash shrinking. If the thieves are aware of how security systems work and ways to bypass it, chances of cash theft still prevail.
Last Few Words
Retail businesses might operate on the same platforms, but there could be different cash shrinkage challenges they may face. It is always better to analyze the internal problems in the business, possible threats to cash security in future and find a solution accordingly.
As discussed above, using cash dispensing safes and other automated cash management products makes it difficult for the thieves to escape untraced. Apart from reducing the incidents of theft, cash management products also increase the productivity of the staff, reduce the chances of human errors and make the entire cash transaction and management process efficient.
Introduce cash management process
A quick and fully traceable cash management process is beneficial for the staff and business. When the process is strict and backed up by smart cash management process, it ensures that employees have lesser chances to steal cash. Make sure that the cash management process doesn't have any scope for use of slush funds or similar activities as these are harder to investigate, and there are more chances of business incurring losses.
Improve security
The most obvious solution to tackle cash shrinkage due to employee theft is to upgrade the security. Install EAS tags and CCTV cameras, and have in-store security guards at stores, back office, and warehouses. Do not hesitate to make staff search mandatory at the stores. Though these are some smart and effective ways to prevent internal theft, don’t assume these to be the ultimate way to put a halt on cash shrinking. If the thieves are aware of how security systems work and ways to bypass it, chances of cash theft still prevail.
Last Few Words
Retail businesses might operate on the same platforms, but there could be different cash shrinkage challenges they may face. It is always better to analyze the internal problems in the business, possible threats to cash security in future and find a solution accordingly.