5 Reasons Michigan Small Businesses Won’t Report Employee Theft

Small business owners in Michigan are just as likely to be defrauded by employees as large employers, but unlike large companies, small businesses are often less likely to report the theft. Some reports suggest that as many as 64% of small businesses suffer from employee theft yet less than 20% report it to law enforcement. Of those employee theft incidents, the majority involved cash followed by employee theft of assets like inventory or equipment. Our top 5 reasons for the theft are as follows:

Embarrassment. The business does not want customers to know that what happened or somehow feels shame for this happening.

Not serious enough: The crime is viewed as small in nature or unworthy of reporting.

Attorney advises not to: Often attorneys tell the business owner that the time and cost outweigh any benefit

Emotional tie to the employee: small business owners feel a betrayal but don’t report it because they know the employee well, know their family, etc and it is difficult to envision them being arrested and prosecuted.

Prosecution wont work anyway: Many small business owners believe that because they are just a small company, the prosecution won’t work out or will be plead away, so why bother when no one cares.

When a small business in Michigan has a situation where the employee theft directly involved a customer, they are more likely to press charges.

To find out more about ways that your Michigan small business can prevent or deal with employee theft that has already occured, please contact one of our team.