June 2025

 
Prepared and Distributed by The Midwest Hardware Association, Inc.
 
 

Preventing Employee Direct Deposit Fraud

In recent weeks, MHA payroll service has assisted owners who have encountered employee direct deposit fraud via email.


Here’s how it typically works:


  1. A fraudster gains access to an employee’s email account.
  2. They send an email to payroll or the designated person, pretending to be the employee, and request a direct deposit change.
  3. The new account often belongs to the fraudster, such as a prepaid card or account under their control.
  4. The next payroll is sent to the fraudulent account.
  5. The employee, unaware of the fraud, reports that they did not receive their pay.


To protect your business and employees, we strongly recommend the following:


  1. Verify Direct Deposit Requests: Always follow up with employees in person or by phone when you receive a direct deposit change request via email. Confirm the request and verify the account details directly with the employee.
  2. Use Secure Communication Channels: Avoid handling sensitive information such as direct deposit requests via email. Encourage employees to submit direct deposit changes through secure, encrypted channels or in person.
  3. Require Signatures on Forms: Ensure that direct deposit forms are signed by employees, whether in-person or electronically. This step provides a clear record of the request and confirms its authenticity.
  4. Educate Employees About Fraud Risks: Regularly remind employees about the risks of fraud and how to protect their accounts. Encourage them to be cautious about suspicious emails or requests for personal information.
  5. Update Forms Regularly: Regularly update your direct deposit forms to reflect changes in security measures. Make sure employees are using the most recent version to minimize the risk of fraud.


By adopting these practices, owners can significantly reduce their exposure to direct deposit fraud and better protect their employees' financial information.

 
 

Fix It Before It Fails:

A Manager's Guide to Employee Corrective Action

Corrective action doesn’t have to be uncomfortable or complicated. When approached correctly, it’s not about punishment — it’s about course correction, clarity, and keeping good people on track. Done well, it reinforces expectations, builds trust, and creates a culture where problems are addressed early instead of ignored until they explode. It’s a tool for growth, accountability, and retention. Following a consistent approach ensures your team knows what to expect, avoids surprises, and helps managers handle situations with confidence instead of hesitation. Below is practical steps you can take to make your next conversation clear, consistent and effective.


5 Steps for Smart, Effective Corrective Action


1. Notice Early and Observe Objectively Don’t wait for problems to snowball. Watch for signs like:

  • Chronic lateness or absenteeism
  • Customer complaints
  • Decreased productivity or careless mistakes
  • Negative behavior toward teammates


Action: Start a simple incident log — date, time, and what happened. Keep emotion out of it.


2. Document the Pattern If the issue recurs, record:

  • What happened
  • When and where
  • Who was involved or witnessed it
  • Any prior discussions


Tip: Stick to facts. Avoid opinions like “bad attitude” instead write “raised voice and interrupted coworker during morning meeting.”


3. Address It Promptly (Ideally Within 24–48 Hours) Letting it slide sends the wrong message. If it's minor, pull them aside informally. Whether it’s ongoing or serious:

  • Meet privately
  • Stay calm, respectful, and focused
  • Describe the issue and impact on the team/store
  • Ask for their perspective


Goal: Don’t ambush. This is a conversation, not a lecture.


4. Set Clear Expectations and Consequences Use the “Corrective Action Talk” template: > “Here’s what needs to change: [specific behavior]. Here’s what I need to see: [improvement timeline]. If this doesn’t change, here’s what will happen next: [next step — written warning, final notice, etc.].”


Action: Document the talk and have the employee sign it. Store it in their file.


5. Follow Through and Follow Up Check in. Praise improvement. If it doesn’t improve, proceed to next step (written warning, suspension, etc.). Keep things consistent and fair.


✅ I’ve noticed a pattern of behavior/performance issue

✅ I’ve documented specific examples with dates

✅ I’ve had a private conversation within 48 hours of the issue

✅ I explained expectations and consequences clearly

✅ I documented the discussion and had the employee sign

✅ I’ve scheduled a follow-up to monitor progress

✅ I applied the process consistently with all team members


This process not only helps protect your store legally by ensuring fair and documented handling of employee issues, but it also reinforces a culture where expectations are clear, follow-through is consistent, and respect goes both ways. When accountability is the norm, not the exception, teams function better, morale stays stronger, and your store becomes a place where people know what’s expected and trust how issues are handled.


Click here for a Manager Checklist to help guide each step of the process.

 
 

Sales Trends March 2025

Here are the most recent Illinois, Minnesota-Dakotas, and Wisconsin hardware store sales trends, gathered from association members using the MHA's monthly accounting services. The figures derived for each region include sales data from the following number of stores:


Illinois - 15 stores

Minn.-Dakotas - 36 stores

Wisconsin - 45 stores


Month

YTD

Illinois

-4.30%

-11.16%

MN-Dakotas

3.86%

-1.45%

Wisconsin

-0.77%

-7.40%

 
 

Calendar of Events


Ace Hardware Fall Convention

August 12 - 14, 2025 in Chicago, IL

   

Do it Best / True Value Fall Market

September 5 - 8, 2025 in Indianapolis, IN