ACCORDING TO ONE ESTIMATE, EMPLOYEE THEFT ACCOUNTS FOR TWO-THIRDS OF RETAIL THEFT; SHOPLIFTING THE OTHER ONE-THIRD. THE BEST PROFIT SAFEGUARD IN A STORE IS THE EMPLOYEE WHOSE INTEGRITY IS BEYOND QUESTION. UPGRADING THE LEVEL OF RETAIL PERSONNEL IS LARGELY A MATTER OF PERSONNEL SCREENING AND SELECTION, WITH REFERENCE CHECKS, CREDIT CHECKS, PSYCHOLOGICAL TESTS, POLYGRAPH EXAMINATIONS, AND PERSONAL CHARACTER EXAMINATIONS. IN ADDITION, BASIC TENETS OF EMPLOYEE MOTIVATION SHOULD BE USED, SUCH AS EMPHASIZING EXCELLENCE OF CONDUCT AND PERFORMANCE, ADOPTING A 'ZERO SHORTAGE' ATTITUDE, AVOIDING A DOUBLE STANDARD OF MORAL AND ETHICAL AND CONDUCT, AND PRESERVING THE DIGNITY OF THE EMPLOYEE. TO SUPPLEMENT EMPLOYEE INCENTIVES (E.G., REASONABLE RULES, A REWARDS SYSTEM TO ACKNOWLEGE OUTSTANDING PERFORMANCE, MATCHING EMPLOYEES TO THEIR JOBS) OWNERS AND MANAGERS SHOULD IMPLEMENT CONTINUING PROGRAMS OF INVESTIGATION AND TRAINING. RETAIL THEFT HAZARDS CAN BE ELIMINATED BY PRICING ITEMS BY MACHINE OR RUBBER STAMP, PERMITTING ONLY AUTHORIZED EMPLOYEES TO SET PRICES, MAKING UNANNOUNCED SPOT CHECKS TO BE SURE THAT ACTUAL PRICES AGREE WTIH AUTHORIZED PRICES, MATCHING REFUND ITEMS TO RETURN VOUCHERS, AND KEEPING A TIGHT CONTROL ON ALL CREDIT DOCUMENTS. MOREOVER, POPULAR SALESPEOPLE SHOULD BE WATCHED TO DISCOVER WHY THEY ARE SO POPULAR, CASHIERS SHOULD BE WATCHED FOR SUSPICIOUS USAGE OF THE CASH REGISTER, AND ALARMS AND OTHER SAFEGUARDS SHOULD BE USED TO PREVENT BACKDOOR THEFTS. SHOPLIFTING CANBE COUNTERACTED THROUGH THE POSTING OF ANTISHOPLIFTING SIGNS, KEEPING UNUSED CHECKOUT AISLES CLOSED, KEEPING SMALL EXPENSIVE ITEMS LOCKED UP, AND STATIONING A UNIFORMED GUARD DURING BUSY TIMES. UNDERCOVER INVESTIGATION CAN BE UTILIZED TO STOP EMPLOYEES WHO ARE CHRONIC THIEFS. A LIST OF REFERENCES IS APPENDED.