MICROS Blog

What to do about employee and customer theft

Posted in For Hotels tags: Hotel Management

by Friedhelm Tringas

Theft should not be considered a ‘taboo’ topic; yet often it is. Hotel staff are so focused and trained to look after hotel guests that they find it hard to view their customers or colleagues as possible criminals.  From minor theft of hotel items (e.g. towels) to systematic fraud; theft can cause very high losses and can also have an impact on customer service:

How does theft affect customer service? 

• Higher rates – due to increased business operating costs
• Feeling of insecurity – passed on from employees to guests

Minimising the impact of theft improves your customer service through lower costs and the provision of secure accommodation. 

Whilst researching for this blog post, I came across some interesting statistics on the International Foundation for Protection Officers website.  In the US, national estimates show that ‘75% of all employees steal from their employers at least once throughout their careers’. The same statistics show that ‘at least half of these 75% steal multiple times from their employer.’

A recent article in The Wall Street Journal highlighted a case of identity theft through stealing credit card information.

With the prevalence of theft, and the harsh impact it can have on customer service and the bottom line, I have summarised both motives and preventative measures in my points below:

Why do employees steal?

• Low morale – also a major reason why businesses suffer from low productivity
• Mistreatment – the employee feels that the business or company has wronged them in some way
• Lack of recognition – the employee feels that they are underpaid or under-appreciated for the work they do
• Perceived low risk – the chance of being caught is low.  Does the hotel have a strict no tolerance policy?
• Lack of management control – easy to steal because the employer does not have preventive measures to stop them

How can you prevent employee theft?

• Employee training and education – about theft and the repercussions if someone is caught
• Employee monitoring systems – security cameras, restricting access to certain areas
• Cash handling procedures – control of all cash handling and possible use of fraud detection software
• Stock control systems – to ensure all inventory is accounted for
• Recruitment policies –  focus on character references, rigid screening, criminal record and credit rating searches

Why do customers steal?

• Opportunity theft – minor items are easily removed from rooms and taken as souvenirs.
• Carelessness – hotel guests are negligent and damage hotel property
• Organised theft – hotel guests book accommodation with a view of stealing hotel room items (e.g. TV sets)
• Perceived low risk – the chance of being caught is low, especially if checking in with false identification
• Lack of control over inventory – hotels may not notice missing items for a while

How can you prevent customer theft?

• Clear signage – alerting guests to their responsibilities and what actions can be taken in case of theft
• Monitoring systems – security cameras, restricted access areas and regular stock takes
• Thorough identification processes – careful scrutiny of identification and credit card information
• Apply costs to in room items – and charge guests upon check out (e.g. dressing gowns, bottle openers)

There are numerous intelligent ways to minimise the risk of theft.  A major step forward is recognising that theft is not a ‘boardroom taboo’ and a topic that needs to be considered at all hotels. After all, most hotel guests are honest and will appreciate not having to pay for people for someone else’s expense.