$5,000 Reward to Employees for Reporting Theft

morrisg

We are considering developing a policy that would reward employees $5,000 if they report thief by other employees or outside contractors who do work in our plant. We are a manufacturing faculty and often contract certain work to outside contractors.

I recognize that there would need to be certain limits on quantifying what constitutes thief since we really do not care or wish to pay out $5,000 if someone took a company pen home or found out they were made 10 copies on the copy machine for personal use.

Do any of you have a policy of this nature, and if so, what does your policy say to deal with this? Any other advice would be appreciated.

Gillian3

I doubt that you will find companies that do this. There are a bunch of reasons why not.

1. How do you set the standards for what qualifies as theft? You don't want to count 10 copies but what about 50?
2. How will you prove that there was theft - are you going to base it just on employee sayso? What if the employee had it in for someone else and decided to do a job on the other person?
3. It is good when employees speak up about wrongdoing, but do you want a company culture based on snitching?
4. How do you deal with the employee who tells you about a theft, but you decide it isn't, and when you read the policy it is a borderline situation?
5. Theft occurs in many ways, sick leave when not sick, personal computer and telephone usage, etc. etc. Are you just going to deal with one type of theft?

I think it is good to reward someone for pointing out that a vendor is stealing or something else improper, and after an investigation you agree. I would reward after the whole thing was over though.

morrisg

Thanks for your well thought out comments. Your points are good ones and well made.

Whirlwind

Gillian's points are excellent, but if you really want to offer rewards, there is a middle ground to consider: Rather than a standing reward offer, you might want to offer rewards after particularly heinous thefts have occurred on a case-by-case basis. We did this when we suspected employee theft of a major amount of expensive media equipment. The loss of this equipment impacted services to students with disabilities, so we felt very strongly about identifying the perp. Unfortunately, no one came forward with information, but it seemed to have a dampening effect on our theft rate thereafter. We sent a message of "We feel so strongly about this that we, as administrators, are pooling our personal money to offer this reward." Offering the reward after a specific instance instead of on a blanket, on-going basis seemed to mitigate the possibility of creating a snitch culture and worrying about how to define "theft."

morrisg

Thank you for your response. Your answer certainly addresses many of the concerns associated with a "blanket" cover all program. You also address well some of the concerns Gillian3 had.

E Wart

Several years ago the President's CPU and keyboard were stolen (out of his office). After reporting to the police who did virtually nothing, we did offer a reward (I think of about $500) to anyone who provided information that led to the recovery of the CPU. We said we would keep this as confidential as possible (but would have pressed charges and you bet fired if we could have proved it was an employee.) Since we are on a bus line and have lots of strangers 'drop in' to ask directions, to use bath room etc., we couldn't prove it was any employee. However, we did change procedures after the 2nd one was taken. (By the way we reported to police because they do list with Pawn shops in case one with that serial no. showed up. President just wanted his info off the pc.)

As far as trying to reward "sniches" which I agree is a negative way of doing things, why not reward employees whose suggestions help "save the company" money. This could be anything from buying a different product, to changing a procedure (which could lead to less theft), to other suggestions. You could say that the amount could vary depending upon amount saved that can be documented and the impact it had to the company. You do have to set up a procedure on this (forms to fill out, review panel/person to periodically review, etc.) You may find that this helps cut down on theft (ie. someone may suggest that the supply closet be locked and only a certain person has a key to it) as well as getting employees to be cost conscious.
E Wart

marc

I will give the pen back, I promise.

morrisg

Marc,

I am so glad the posting got to you. Holding onto your guilt for all this time cannot be good for you. I really feel your pain. Nevertheless, I will need to report you!

Down_the_Middle

Using language that says: "leading to the arrest and conviction of" provides more clarification than what you're planning to do. You'll have to decide if there's a distinction between misdemeanor or felony theft. The issue of false claims is always a risk when rewards are offered, so I'd be tempted to include some verbiage to inform people that frivolous allegations are viewed seriously. You don't talk about whether any surveillance has been involved, not worked, etc.........

morrisg

Down-the-Middle

You make good points. I especially like you mentioning the risks associated with false claims. I think that comment was the "nail in the coffin" for me to not take this any further. There really is no real benefit to us when weighed against the risks.

Thanks