MiPyMES Face Elevated Risk of Employee Theft: Amitai

Employee dishonesty can significantly impact company productivity, with estimates suggesting it could account for up to 30% of lost productivity, as noted by Amitai. While large corporations may see a lower percentage of personnel engaging in such misconduct, the issue appears to be more pervasive in micro, small, and medium-sized enterprises (MiPyMEs), where approximately 70% of the workforce is vulnerable to these illicit behaviors, according to Amitai.

This is significant in Mexico, given that in 2019, 99 out of every 100 businesses in the country were categorized as MiPyMEs, according to the National Institute of Statistics and Geography (INEGI). “MiPyMEs are the most exposed to these types of risks, and statistics warn that 23% of these organizations disappear each year precisely due to fraud issues,” said Fernando Sentíes, CEO, Amitai to Publimetro. 

Unauthorized removal of products, supplies, or money using various methods, fraudulent activities, breach of trust, and theft are among the most prevalent occurrences of employee crimes within a company, manifesting in diverse ways, according to Asesores, Contadores & Fiscalistas, SC. 

The primary causes of employee theft include personal debts, financial difficulties, family medical emergencies, and a breakdown in loyalty towards the organization, according to Amitai. The latter is attributed to low salaries, a negative work environment, toxic leadership, and communication problems. 

There are four types of theft perpetrated by employees within a company, according to Adam Milo Mexico. Internal theft involves the misappropriation of money or assets from the business, while external theft is committed by individuals outside the company. Theft involving physical violence entails physical aggression to steal goods, and cyber theft jeopardizes the company's information, such as bank accounts or patents.

To prevent employee theft, it is vital to hire honest individuals, according to Chubb. This involves conducting thorough reference checks, verifying documents, assessing skills, administering psychometric tests, and establishing a probationary period during the hiring process, reports Chubb.

Moreover, Leaders can take proactive steps to reduce stealing in the workplace such as  prioritizing ethical behavior by establishing honesty as a core value and consistently reinforcing it within the company culture, as reported by Character.org. 

Moreover, rather than relying solely on surveillance methods, it is crucial to establish confidential reporting platforms for employees to report suspicious activities anonymously. Additionally, implementing reminders that promote ethical behavior among staff can further reinforce a culture of integrity within the organization. As an extension, it is imperative to shift the mindset that only certain individuals are prone to stealing, as corruption can occur even among trusted authorities, as noted by Character.org.

Business ethics is crucial for any company, offering numerous benefits. It improves the company's image, fosters positive relationships with stakeholders, creates a harmonious workplace, and boosts productivity, wrote Gino Demeneghi, CEO, Altus Global Network for MBN.