What to do when you suspect an employee is stealing from you.

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Few HR dilemmas are as sticky as dealing with the possibility that an employee is stealing from the company. You need to handle it with almost surgical precision to guarantee the company does not overstep its bounds and expose itself to liability.

If you suspect an employee is stealing, you will have to decide either to conduct an internal investigation or to call in outside expertise, perhaps your attorney, to find out what is happening.

An internal investigation will probably cost less, but consider whether you can do so fairly and without bias, and whether you have the necessary resources.

Your company's insurance carrier can provide assistance. If you decide to involve your carrier, promptly notify it and comply with all policy provisions. Note that many insurers require the police to be involved in internal theft investigations.

Elements of an investigation

Whether performed in-house or through an outside investigator, your investigation should include the following steps:

* Gather facts and compile documentation (information about witnesses, documents and physical evidence).

* Audit computer files, financial records, etc.

* Preserve evidence, such as...