What is a common effect of employee pilferage in a retail workplace?

Employee pilferage, which refers to the theft of merchandise or cash by employees, often leads to a significant loss of profits for the store. When employees engage in such dishonest behavior, it directly impacts the store's financial health, as the cost of lost goods and money cannot be recovered. Retailers typically rely on their inventory and sales data to understand profitability, and pilferage disrupts these figures, leading to reduced earnings.

Moreover, the effects of pilferage can extend beyond immediate financial losses. They may lead to increased security measures, employee distrust, and a detrimental culture within the workplace that can affect overall morale and productivity. Therefore, the loss of profits is a direct and common consequence of this unfortunate behavior among employees.

While other options like improved customer relations or increased staff loyalty might seem beneficial on the surface, they do not accurately reflect the typical repercussions of employee pilferage. In fact, a workplace plagued by theft often sees a decline in morale and trust among employees, negatively affecting relationships with customers and overall efficiency.