Deterring against theft from employees who carry a lot of money

[Iqen]

Hi; I have a used appliance sales/delivery business. I've been doing it all myself but I could make even more if I had a driver do the deliveries for me (deliveries eat up a ton of time). The issue is that most of my buyers pay cash, which means that my delivery driver could carry $300-700 cash on him at any time, which is about 1-2 weeks of wages.

I'm concerned that it may be awful tempting for a driver to decide to quit the job without notice and without returning my cash. How can I control against this? These are the policies I have in mind so far:

- Don't hire anyone with a criminal record
- Try to have them return whenever their cash on hand reaches a certain threshold (though this may be tough due to the nature of the business--forcing cash dropoffs at HQ may more than double the time for an unexpected/short notice delivery). Perhaps I could require them to deposit cash via ATM? I'm not sure about this.
- Make them sign a legal disclaimer that indicates employee theft will be prosecuted harshly
- Give them customer feedback forms to give to each customer (Why? I think the act of recording will cause them concern about stealing)

 

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[Tom.V]

Force the employee to put down a deposit or find another way to process payments. Why not get a small credit card swiper adapter for smartphones and get the customers to pay through that?

 

[Iqen]

Force the employee to put down a deposit or find another way to process payments. Why not get a small credit card swiper adapter for smartphones and get the customers to pay through that?

Thanks; I could do that. There is a fee of course, and customers in my industry are accustomed to paying cash. But I could do it that way.

 

[Bigguns50]

I like that idea...the credit card. They're used to it...well, convince them using a credit card is better. Better record, maybe their card covers some purchases...theft, loss, damage ? Maybe they get some type of reward points ? I don't know what all is offered using a c.c.

 

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[Era]

If you can't use a credit card system, then create invoices for each customer that the driver has to take. Have the amount that the driver needs to collect on the invoice. Then have the customer and driver sign the form that cash was received. At the end of the shift the driver is responsible to turn over the amount on each invoice. If they don't, then at least you have a paper trail that was clearly collected while on the job. If the driver takes off then reduce the amount from their final pay check.

 

[hotshot]

I like Era's idea.

I used to be a salesman for a company that sold lawn aerations and driveway sealings door-to-door. Spring Masters, created by Ben Stewart. The Millionaire by 25 guy actually interviewed him.

And one tactic for preventing theft was to record each customer's information. Not bulletproof but still...

Anyway this company hired people as private contractors and paid them a percentage of total sales at the end of every shift in cash. And the top salesman each day got paid massive bonuses.

Now hiring employees as contractors would require some legal finesse. But if you can find a way to offer incentives the employees in the form of a percentage or bonuses at certain milestones, then you create a job worth keeping.

 

[liquidglass]

Era's idea is exactly the process you need to put into place for employees.

On top of that, they have to put their credit card/debit card on file with you and sign a document that says if they quit without turning in any collect monies that it will be debited/credited directly to them. Basically make them responsible for it and they'll treat it like just another part of their job rather than cold hard cash.

 

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[tafy]

Make an Invoice for each customer
Tell them you prosecute for theft
Pay them a decent wage
Make them work a certain amount in hand, if you pay monthly then you pay them on the 15th, so they have worked like 12 days till they get their pay cheque, they wont jeapordise that by some theft hopefully.

thats all you need!

I wouldnt take a deposit ot take their card details, wouldnt look good on your part

 

[RHL]

create invoices for each customer that the driver has to take. Have the amount that the driver needs to collect on the invoice. Then have the customer and driver sign the form that cash was received. At the end of the shift the driver is responsible to turn over the amount on each invoice. If they don't, then at least you have a paper trail that was clearly collected while on the job. If the driver takes off then reduce the amount from their final pay check.

Ding ding ding!

Pay every two weeks, make sure the deliveries each day don't exceed two weeks salary, if he skips town or skimps you, keep his paycheck.

Also, don't be a jerk about this. One of the things that most inspires employee disloyalty is harsh scrutiny and impugning the credibility of employees. It's a fact of life that you have to watch out for theft (my Dad started his own brick-and-mortar company and a couple of his first employees had to be fired for theft despite their sterling recommendations/reputations.

 

[JEdwards]

I'm concerned that it may be awful tempting for a driver to decide to quit the job without notice and without returning my cash. How can I control against this? These are the policies I have in mind so far:

I think you worry to much... Theft happens. Hire people that have lived at the same location for years and has bills. They need the paycheck more than the cash.

 

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[PeteLife]

I think you worry to much... Theft happens. Hire people that have lived at the same location for years and has bills. They need the paycheck more than the cash.

^^^ I concur ^^^

Everyone here has already given you excellent answers (invoices, credit card readers, harsh theft policy, etc) so I wont even get into that. But keep in mind that for these employees, you will have all their personal info from social security # to background check info (traceable shit).

Unless you are hiring low life scumbags (which I doubt you will), no one is going to risk jailtime and a criminal record for $300-$700 ... Especially if they can simply wait a few days and get that in a paycheck instead.

$700 is just not the type of money people (with a life) runs off with.

You got nothing to worry about if you have a decent system in place

 

[Kak]

If you can't use a credit card system, then create invoices for each customer that the driver has to take. Have the amount that the driver needs to collect on the invoice. Then have the customer and driver sign the form that cash was received. At the end of the shift the driver is responsible to turn over the amount on each invoice. If they don't, then at least you have a paper trail that was clearly collected while on the job. If the driver takes off then reduce the amount from their final pay check.

Then press criminal theft charges.

 

[Iqen]

^^^ I concur ^^^

Everyone here has already given you excellent answers (invoices, credit card readers, harsh theft policy, etc) so I wont even get into that. But keep in mind that for these employees, you will have all their personal info from social security # to background check info (traceable shit).

Unless you are hiring low life scumbags (which I doubt you will), no one is going to risk jailtime and a criminal record for $300-$700 ... Especially if they can simply wait a few days and get that in a paycheck instead.

$700 is just not the type of money people (with a life) runs off with.

You got nothing to worry about if you have a decent system in place

Heh, I guess I should have mentioned up front that I live in one of the highest crime cities in the country (San Bernardino, CA). Finding decent people out here is hard. The surrounding areas are only slightly better (except the areas around colleges and towards Redlands). But based on the feedback I think I can put together something that works.

The one thing I would like to comment on is that having a bi-monthly paycheck doesn't do much for me on the day after payday. So that's an easily subverted control system.

 

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[PeteLife]

Any update???

 

[julien515]

Hi; I have a used appliance sales/delivery business. I've been doing it all myself but I could make even more if I had a driver do the deliveries for me (deliveries eat up a ton of time). The issue is that most of my buyers pay cash, which means that my delivery driver could carry $300-700 cash on him at any time, which is about 1-2 weeks of wages.

I'm concerned that it may be awful tempting for a driver to decide to quit the job without notice and without returning my cash. How can I control against this? These are the policies I have in mind so far:

- Don't hire anyone with a criminal record
- Try to have them return whenever their cash on hand reaches a certain threshold (though this may be tough due to the nature of the business--forcing cash dropoffs at HQ may more than double the time for an unexpected/short notice delivery). Perhaps I could require them to deposit cash via ATM? I'm not sure about this.
- Make them sign a legal disclaimer that indicates employee theft will be prosecuted harshly
- Give them customer feedback forms to give to each customer (Why? I think the act of recording will cause them concern about stealing)

sniff sniff... I smell a potential fastlane opportunity here. IDK how many businesses still sell products in cash regularly but inventing some sort of a deposit box that counts the money then locks it in the box would allow you to know if you where being underpaid so employees wouldn't steal from you, and they can't open the box to take the money after it has been counted. if a box like that could be made for less than $50.00 retail you might see some serious profits from such a product.