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How mPOS Technology Helps You Minimize Internal Loss

Competition remains fierce for most retail businesses, making the cost of chronic problems like  employee theft that much more painful. While not all internal losses are intentional, The National Restaurant Association estimates that internal employee theft is responsible for 75% of inventory shortages.

It’s an unfortunate truth that the largest source of loss in any business is internal. Very little of it is malicious, but merely, an opportunity taken. By having processes in place that encourage employees to report all losses as they occur, you are able to keep more accurate inventories, which helps you to create the perception of observation. Many studies have shown that most people will behave more honestly when know they are being observed.

Along with softer solutions, such as building employee loyalty and trust, mPOS can tighten up inventory and demonstrate to employees that you are running a tight ship, reducing internal loss.

Here’s how.

Clear inputs and ordering

The right mPOS system will allow you to program for every possible order modification, ensuring that every “double cheese” or “extra shot of espresso” is recorded and charged for.

Workflow efficiency

Internal loss isn’t always malicious. Sometimes it’s busy on the floor, and servers and retail staff are just trying to get through the line. Even at peak hours, the heightened efficiency of mPOS keeps staff from “getting lazy” and under-ringing or making costly mistakes. When it’s simple to ring in refills, your crew is less likely to skip this step in an attempt to turn tables.

Know who is on, when

Managing labor is critical to success. mPOS technology ensures that you know who’s doing what on your registers. You’re able to identify errors quickly, and know who is making them, before they become problems.

Reward employees doing well

Much as you will better understand who is making errors, you’ll also be able to monitor who is doing well. The system not only helps you flag mistakes and suspicious activity, it also ranks employees based on things they do well. For example, it tracks when employees sell add-on items like desserts or sides, so managers often use it to motivate employees with contests or calling out who is selling the most. When it’s in your staff’s best interest to sell more, they’re much more likely to punch in every last item.

Monitor from anywhere

The days of monitoring hours of video to find thieving employees are long over. The right mPOS solution will allow you to monitor employee time, sales, comps, mistakes, goals and even your inventory remotely, so no matter where you are you can have a finger on the pulse of your business.

Restaurant and retail owners are busy enough running their business, and while employee theft and internal loss are common in the industry, they don’t have to be. With the right mPOS solution, business owners are able to fully understand who is doing what and selling what without spending all of their time focused on profit-draining activity. By allowing mPOS technology to do the tracking and monitoring for you, you’re able to build more trust in your employees, all while protecting inventory from theft and error.

Photo Credit: Holly Victoria Norval by CC BY 2.0