Screening Your Seasonal Workforce

October through January are big months for the retail industry in terms of sales volume. Unfortunately, the holiday season also accounts for about half of all annual shrinkage. Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative errors, vendor fraud, etc. The two biggest causes of retail shrinkage in the U.S. are employee theft at 43% and shoplifting at 32%.

Forty-three percent is an alarming number for employee theft. It is no coincidence that these four months require the hiring of seasonal workers to help with increased foot traffic and sales volume. With these appalling numbers in mind, how can retail companies combat this seasonal employee theft epidemic?

For starters, retail companies should be aware that cutting corners with their screening process will not save their business money in the long run. Shrinkage results in a loss of $42 billion for U.S. retailers annually. With almost half of the $42 billion in shrinkage occurring during the holidays, it is a no-brainer to require the same background screening standards to seasonal workers as full-time employee. However Holding seasonal workers to the same standards as full-time employees means nothing if you are conducting a bare-bones background check on full-time employees. Reducing shrinkage requires a background check that is comprehensive in scope.

Secondly, it is important to remember that if an individual has stolen from their employer, they are more likely to repeat that offense. Bolster your employment verification process by requiring a reference from the individual’s last employer. While the applicant may not have been convicted of theft, their employment may have been terminated for deceitful practices such as: entering refunds or discounts, cancelling transactions, or modifying prices at the cash register. A lot of theft is the result of dishonest practices at the cash register.

If your company is in the retail industry, take a look at your background screening procedure. Are you doing the bare minimum? If your background check consists only of a national database search, you are more likely to hire someone who has committed theft in the past. If you have any questions about fortifying your background screening process, please feel free to use the comments section or contact S2Verify at 1 855 671 1933.