Let’s look at an example: A customer at a major coffee chain orders a small coffee with a shot of hazelnut flavouring. The coffee costs US $3.50 and the shot costs $0.25.
The employee behind the counter knows the exact change for this transaction every time. They charge the customer the full amount, ring only the flavour shot and pocket the $3.50.
Do that 10 times in one shift and the employee will make more off your POS cash drawer than what you pay them to work the shift. This is an example of under-ringing. With exception-based reports, these instances can be tracked, recorded and you can take corrective action.
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With exception-based reports, data can be filtered down to terminal, an employee or transaction-levels. With these specific details, problems can easily be addressed. When employees are confronted about fraudulent activity, many will admit to some theft.
However, statistics show that you need to consider the 11.5 Factor. The 11.5 Factor suggests that the average amount of theft admitted by employees should be multiplied by a factor of 11.5 to find the true amount of theft. Therefore, if an employee admits to $100 of theft, the true figure is likely closer to $1150!
With all this talk of employee theft, you may be concerned about your own staff. This is not to say that all employees are dishonest. The benefit of exception-based reporting is that the numbers don’t lie; you simply need to look at them.
Additionally, having a loss prevention system in place may be enough by itself to deter potential thefts. Six out of 10 employees will determine their likelihood of reporting or committing fraudulent activity based on whether their employer has a system to track exceptions, or depending upon the way fraudulent activity is viewed within the organisation’s corporate culture.
In an ever-changing environment, loss prevention and exception-based reporting can prove highly valuable within the global hospitality industry.
With a rapid return-on-investment and settings that can adapt to the user’s needs, a loss prevention solution can help move your business forward.
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