Recent analysis of data from the 1992 American National Retail Security Survey shows factors related to staff appreciation and loyalty are associated with shrinkage levels. Inventory shrinkage is lower in stores where sales staff salaries are higher, salary incentives are provided, profit sharing is practiced, staff turnover is low, and managers are promoted from within. Findings suggest that attention to human resource and industrial matters could reduce the impact of employee deviance on a retail company. Consideration of available research about internal theft identifies a number of possible approaches to reduce that activity. The author suggests specific ways to reduce employees' motives to steal from the company. The measures recommended have the effect of reducing employee dissatisfaction with work and the employer, giving employees a sense of belonging within the company, building morale, and encouraging staff participation and involvement in workplace factors that affect them. Other measures that can reduce employee theft are for management to demonstrate concern for employees, set clear rules for employee behavior, enforce these rules consistently, and reduce opportunities for theft. 14 references