The real cost of lost and stolen assets

Theft trying to steal cashbox. Thievery money conceptAccording to the Theft Act 1968, a  person is guilty of theft if they dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it, and “thief” and “steal” shall be construed accordingly. 

A 2018 study found that approximately 25% of employees lost company assets related to their work. This may seem like a relatively small percentage, but when the total impact of these losses is considered, the costs are indeed significant.

Impact of lost and stolen company goods

A recent report showed how much employee theft of seemingly insignificant company items can run into the millions. Workers have free access to company-owned equipment, supplies such as stationery, and furniture.

 

In the UK, 39% of workers admitted to taking items from their places of work. This is a staggering 10 million employees.

 

Companies do not often notice the loss or theft of small consumables, but in the end, everything adds up. Even stationary can punch a hole in business pockets along with more significant thefts featuring tools, mobile phones and laptops. UK businesses lose more than £183m as a direct result of employee theft. This excludes losses and theft from people other than workers.

Office-based businesses and equipment seem to be the tip of the iceberg. The UK’s construction sector, which is a multi-billion-pound industry, suffers significant losses each year due to lost or stolen goods, tools and equipment.

This sector is a honey pot for thieves, especially if they can get their hands on non-traceable valuables on construction sites. Statistics indicate that during 2020, this industry suffered losses of at least £800m. Experts believe that this is a conservative figure considering that many thefts and losses are never reported.

Lost and stolen equipment causes a ripple effect that impacts a company on many levels. Some of these effects include:

  • Escalation of insurance costs on the back of claims.
  • Acquiring new equipment to replace that which was lost or stolen.
  • Entering into or prematurely renewing lease agreements to hire new equipment.
  • Production downtimes, profit losses and missing project deadlines.
  • Loss of intellectual property and data stored on computers and mobile devices such as tablets and laptops.
  • Time spent recovering lost data and recreating projects.
  • Cyber security risks and the time it takes to reset passwords and update security systems.

Most commonly lost or stolen equipment

In the construction industry, tools are often the most common lost or stolen item. Even small tools can be financially valuable and are easy to move and conceal. However, there are also reports of plant machinery being stolen, and the cost of replacing this equipment amounts to hundreds of thousands of pounds.

A detailed analysis of other equipment shows that:

  • 36% of employees lose mobile phones and these cost on average £550 to replace.
  • 23% of employees lose memory sticks, which cost an average of £8.50 to replace.
  • 19% of employees lose tablets. It costs roughly £429 to replace one of these.
  • 14% of employees lose laptops. Each averages a replacement cost of £249.
  • 8% of employees lose power packs or chargers, each of which costs about £15 to replace.

Businesswoman Stealing A Calculator From Office DeskHow to prevent asset losses and thefts

Increasing security measures is one way of preventing losses and thefts in the workplace. Some of these include:

  • Controlled entry and exit points to and from facilities.
  • Staff training to increase awareness and help protect company assets.
  • Implementing security measures such as CCTV surveillance systems.
  • Installing tracking equipment in company vehicles.

However, one of the most cost-effective and efficient ways to deter loss and theft remains an effective asset management and labelling system.

Importance of asset management and asset tags

Asset labelling helps companies keep track of valuable equipment, especially when tools or mobile assets are used offsite. Anything from computer monitors to industrial tools and vehicles can be tagged.

An asset management system, which includes the labelling of goods, allows a company to curb more than theft and losses. It also helps a great deal with routine maintenance and the replacement of broken or outdated equipment. Essentially, it:

  • Maximises equipment and employee efficiency.
  • Reduces unnecessary production and unproductive downtimes.
  • Deters theft and enhances company security.
  • Helps with meeting compliance requirements, where applicable.

At Seton, we have a huge range of asset tags that are durable, easy-to-read and can be used with scanners and software to regulate onsite and offsite equipment. Asset tags are your first-line defence in the move towards a streamlined asset management system.

Disclaimer: The information provided through Legislation Watch is for general guidance only and is not legal advice. Legislation Watch is not a substitute for Health and Safety consultancy. You should seek independent advice about any legal matter.

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