Employee Theft: Exploring the Issue in the Hotel Industry

This report delves into the pervasive issue of employee theft within the hotel industry. It begins with an executive summary highlighting the significant challenges posed by employee theft, including its impact on guests and the industry's reputation. The introduction establishes the report's purpose: to explore the existing literature on employee theft in hotels. The main body of the report examines the various forms of employee theft, such as unauthorized control of assets, inventory removal, time theft, and cash-related fraud. It explores the underlying causes of this behavior, including a lack of ethical training, poor management practices, financial difficulties, and opportunistic behaviors. The report also discusses the impact of employee theft on the hotel industry and its consumers. Finally, the report offers several recommendations for preventing employee theft, including segregation of duties, cash management controls, inventory management strategies, and effective payroll systems. The conclusion summarizes the key findings and emphasizes the importance of implementing these recommendations to mitigate the risks associated with employee theft and protect the hotel's assets and reputation.

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HOS6504
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3/31/2020
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1. Executive summary
The purpose of the report is to explore the literature pertaining to employed theft issue
in hotel industry. Employee theft is found to be one of the serious and common issues across
businesses like hotel. The impact of this unethical behaviour is also towards the consumers
which reflected Infringement of guest’s property and benefit from the guest supplementary
services. One of the major causes for this unethical behaviour is not providing any sort of
ethical training to the employees. The most common type of employee’s theft is on
authorised controlling during the occupational act. Other type of employee theft in hotel
industry is removal of inventory, cash, free use of facilities, fraudulent refunds and use of
employee discount. Another type of employed theft that has been identified is theft of time
which could be intangible. Cash is one of the easiest aspects to be theft by the employees,
recommendations for prevention of employee theft include ensure segregation of duties of
employees.

Contents
1. Executive summary................................................................................................................1
2. Introduction............................................................................................................................3
3. Employee theft in hotel industry............................................................................................3
4. Conclusion..............................................................................................................................8
5. References..............................................................................................................................9
6. Appendix..............................................................................................................................11

2. Introduction
Every industry in international market reflects its unique constant and consequences
which can be impacted due to various factors. Hospitality industry is one of the growing and
successful industries across the globe, which has been providing accommodation, food and
beverage and various other luxurious products and services to be offered to the tourist.
Considering hotels in hospitality industry it has been find out that Employees theft is one of
the major challenges that the hotels have been facing since years. The cost for employed theft
and literature of employed theft in hotel workplace will be considered as part of discussion in
the report further. Therefore the purpose of the report is to explore the literature pertaining to
employed theft issue in hotel industry.
3. Employee theft in hotel industry
Employee theft is found to be one of the serious and common issues across businesses
like hotel. The literature reflects research in ethical behaviour of employees working in a
hotel. Considering the departmental analysis hotel frontline employees that are more than to
food and beverage are considered to be more tolerant with this unethical behaviour. The
researcher reflects that a healthy ethical working environment could be helpful in the
organisation to increase the job satisfaction and commitment towards the organisation by
employees. On the contrary, this unethical practice of employees of being perception of theft
in hotel industry has reflected the industry or company negatively. Other than this, the impact
of this unethical behaviour is also towards the consumers which reflected Infringement of
guest’s property and benefit from the guest supplementary services (Anitha, 2019).
One of the major causes for this unethical behaviour is 81% of the hotel managers
have been accepted that the hotels are not providing any sort of ethical training to the

employees or no such training is provided to the students of Hotel management prior to
entering into the workforce. The study reflected that the hospitality students have found to be
rated as one of the unethical behaviour facing that is employed theft in this industry along
with other unethical issues like population, sexual harassment and waste disposal. Among all
the unethical issues identified the most unethical one is the act of theft which has increased to
extend its level. There are various types of employee theft in a hotel industry (Abdulraheem
Sal, 2016). The most common type of employees theft is on authorised controlling, taking
and transferring of property or money perpetrated by employee during the occupational act.
The literature reflects that unauthorised appropriation of hotels property conducted by staff
members are not limited to their personal use it is for sales as well. Considering the materials,
supplies of products are some of the theft products other than this information of intellectual
property could also be sold which could be a major threat for the company (Kong & Goh,
2018).
The literature reflect other type of employee theft in hotel industry like removal of
inventory, cash, free use of facilities, fraudulent refunds and use of employee discount. For
instance, free services or facilities that are provided to the customer in hotels are taken over
or removed by employees for their personal benefit moreover monetary tips are also removed
in case of any guest-room exchange or change (Kong & Goh, 2018).
Other than this another type of employed theft that has been identified is theft of time
which could be intangible. Since hotel is the service industry where the employees are
offering service to the consumers, providing time at job is one of the major aspect for which
they are being paid. Arriving late, leaving early for work or additional breaks or on
availability within the organisation is also kind of things that employees are considering in
hotel industry. This is another common problem identified which reflect the on efficiency and
on productivity of the hotels in international markets. This may differ from consequences,

level of degree, item and cost for the organisation but all these have been impacting
negatively and acted as unaccounted lost to the organisation (Armstrong, 2017).
The literature pertaining to employ theft in hotel industry reflects the major causes for
this theft which reflect perception of the employees in this industry. This reflects the
motivation behind theft conducted by employee in this industry. This reflects employee late
reasons like unclear HR policies, poor orientation programmes and the poor management
culture. It has been identified that employ itself is being responsible for this theft by
negligence in training provided to the employees regarding ethical behaviour, not efficient
HR policies in hotel industry or orientation programmes are not effective enough to impact
employee’s performance (Bombiak, 2018).
Literature also reflects Employees related reasons that our cost you to employ
personal causes like financial problem, thrill seeking behaviour, and unethical values.
Considering the first reason in case the policies related to employ theatre and clear the
employees will be negligent towards the constitute of theft and me also commit theft
unknowingly. The major cost for more common employed theft occurrence in the workplace
is due to inadequate policies and training (Frost, 2018). This literature can be justified
through survey conducted by researcher for hospitality employees and hospitality students
which reflected the interview into taking up of pens and leftover food by the employees at
home with them. This reflects poor communication of management in the organisation with
unclear perception. Other than this some items in this industry are considered to be too small
to be considered it as theft which may reflect wrong communicating employed theft policies.
Other than this the perception towards theft as it does not majorly harming anything in the
industry as the food left is not useful for the company as well, this is considered to be not
theft by the employees. This is one of the major reasons that individual conducting this theft
is not feeling guilty of it (Kong & Goh, 2018).

Opportunistic behaviour is also considered to be identified in the operational
environment. For instance, customers who are leaving tips or loose change across the room
when housekeepers are cleaning the room may consider to as opportunity for theft (as
reflected in appendix). Another reason that the literature reflect for theft of employees is
dissatisfied employees from the company. It has been identified from the research that
employers may make employees feel slighted due to which employees people by their
company. These may be towards promotional opportunities, salary equity or the working
environment which is not appropriate or dissatisfying for the employees, and as a part of
consequences employees conduct stealing.
Employees are also overcoming and conducting petty theft with the leftover food so
as to acknowledge their unfair pay, low wages. Other than these toilet papers, towels and
other such products are also theft by employees due to lower wages and lower compensation
in wages to the employees are provided. Other than this poor working environment like time
constant, Staff shortage, difficult customer behaviour, long hours of duty and workload could
also lead to stealing by the employees from their customers or hotel guest. The literature
reflects moral and ethical compass of staff members as one another reason for theft. Ethical
value enhances the job satisfaction and reduces the employee turnover in the organisation and
eventually will be helpful to reduce workplace theft in hotel industry (Recker, 2013).
The recommendations for prevention of employee theft that can be managed
affectively in the organisation include prevention of cash. Cash is one of the easiest aspect to
be theft by the employees in the organisation and in order to prevent this act it is important
for the company to ensure segregation of duties of employees who is responsible for opening
and counting of the cash amount in the hotel so that there will be a person responsible for
handling the cash. Another recommendation pertaining to this is it is starting every shift with
the till floats and server. Re-consolation of daily deposit must be considered with bank

deposit as well which will eventually be compare two point of sale. Prepare monthly accounts
for bank re-consolation is in order to ensure checks and deposit. Other than this through
limiting the amount of people that are allowed for payments, signing checks and approval of
the invoices and windows are also considered (Sohal, 2008).
Inventory is another set of hotel that is to be prevented from theft by employees. For
this some of the internal controls recommended are restricting the food and beverage
preparation items until the point of sale order received by the consumers. Supervision is a
sensual in such departments where inventory delivery its phone and the regular cheque
towards the quantities ordered and delivered must be conducted with another person.
Limiting the access of food and beverage inventory by the employees in the storage area will
also help in preventing stealing. Other than this organisation of inventory will helpful in
prevention by counting the physical inventory quickly and timely. Moreover the physical
distribution of inventory must only be done at the time of point of sale (Bakker & Schaufeli,
2008).
Third important asset to be prevented from stealing or theft would include Accounts
Payable or payroll. This reflects theft in human resource department with access to fictitious
implies or generating fraudulent checks to the windows. This is one of the major risks to the
hospitality business when it comes to duties fraudulent and theft in such departments. There
must be an affective payroll system so as to match the employee access to the register, are
reviewing and auditing. External auditing is recommended on monthly basis for such
department theft risk. It can be said that by distributing the job among various number of
employees may reduce this probability of theft from fraudulent checks. This include auditing
and matching between the vendor list, vendor products, storage products and the payroll so as
to find the responsible person in such fraudulent case (Bailey, 2018).

4. Conclusion
The employee theft behaviour report concluded that unethical practice of employees
of being perception of theft in hotel industry has reflected the industry or company
negatively. The hotels are not providing any sort of ethical training to the employees or no
such training is provided to the students of Hotel management prior to entering into the
workforce. The most common type of employees theft is on authorised controlling, taking
and transferring of property or money perpetrated by employee during the occupational act.
The recommendations for prevention of employee theft that can be managed affectively in
the organisation include prevention of cash. Another recommendation pertaining to this is it
is starting every shift with the till floats and server. Inventory is another set of hotel that is to
be prevented from theft by employees. Third important asset to be prevented from stealing or
theft would include Accounts Payable or payroll.

5.
References
Abdulraheem Sal, M. (2016). The Impact of Training and Development on Employees
Performance and Productivity. International Journal of Management Sciences and
Business Research, 5(7), 2226-8235.
Anitha, J. (2019). Role of Organisational Culture and Employee Commitment in Employee
Retention. Journal of Management, 9(1).
Armstrong, M. (2017). Armstrong’s Handbook of Human Resource Management Practice
(14 ed.). London: Kogan Page.
Bailey, C. (2018). Strategic human resource management. Oxford University Press,.
Bakker, A., & Schaufeli, W. (2008). Positive organizational behavior: Engaged employees in
flourishing organizations. Journal of Organizational Behavior: The International
Journal of Industrial, Occupational and Organizational Psychology and Behavior,
29(2), 147-154.
Bombiak, E. (2018). Green Human Resource Management as a Tool for the Sustainable
Development of Enterprises: Polish Young Company Experience. Sustainability,
10(6), 1739.
Frost, S. (2018). The Importance of Training & Development in the Workplace. Retrieved 06
30, 2018, from https://smallbusiness.chron.com/importance-training-development-
workplace-10321.html

Kong, S., & Goh, E. (2018). Theft in the hotel workplace: Exploring frontline employees’
perceptions towards hotel employee theft. Tourism and Hospitality Research, 18(4),
442-455.
Recker, J. (2013). The Effect of Strategic Human Resource Management on Organizational
Performance: The Mediating Role of High & Performance Human Resource Practices.
Human Resource Management,, 52(6), 899-921.
Sohal, A. (2008). Human resource practices and workforce diversity: an empirical
assessment. International Journal of Manpower, 530.

6. Appendix
Figure 1: Employee theft attitude (Kong & Goh, 2018)
Figure 2: Opportunistic behaviour (Kong & Goh, 2018)