Employee Background Checks-4 WC Blog 498
Pre-employment screening-4
The Cost Of Not Conducting Employee Background Checks
Are employee background checks really necessary? With tight budgets and an unemployment rate that is hitting new lows, hiring can be difficult especially for small retailers. National retail chains are now starting their entry level employees at $9 and $10 an hour in order to fill cashiering, salesfloor and stocking positions. Some offer a shift differential to employees who work overnight or early morning hours. Those same retailers can also cut prices to the point that it makes it difficult for the mom and pop shops to compete with them and keep customers. In this competitive environment it becomes increasingly difficult for the small and medium shops to not just retain help but hire new workers. On the surface it would seem that pre-employment screening would increase that difficulty. A prospective employee may be swayed to another job by the prospect of higher pay or a quicker start date. What about the cost of conducting those employee background checks? Is it even in the budget? I would like to pose another question to retail owners who are on the fence on this. Can you afford not to conduct checks?
Employee background checks conducted by a company that specializes in them will identify potential applicants with criminal histories or other anomalies in their past. A pre-employment screening can be customized to what the prospective employer wants to be sure is NOT on an applicant’s record. A delivery company may be concerned about a driving record. Someone who is going to be working around heavy equipment probably should not have an arrest record for drug or alcohol related offenses. A quality check will look at where an applicant has indicated they have lived on their application. Why is this important? If a person is moving around a lot they could be running from a criminal past. Maybe they are trying to avoid bill collectors. That carries its own concerns do you want to hire someone with financial problems? There are a number of other items that can be checked and the details can be discussed with the company you hire to do your checks.
At this point you may be thinking that you have an application in hand and you will conduct an interview so you should be able to determine whether a candidate will be okay. If this is your position consider this story from whotv.com, “Fort Dodge Sex Offender Accused of New Charges Against Minors”, October 10, 2017 by Kelly Maricle. According to the report a hospital worker was charged with three counts of sexual abuse 3rd degree (2nd offense) and three counts of sex offender registry violations against minors. http://whotv.com/2017/10/10/fort-dodge-sex-offender-accused-of-new-charges-against-minors/ How did a registered sex offender get a job in a location where he would be in contact with minors? There is no indication whether employee background checks were conducted by the hospital. If there was not a check conducted then it seems there would be negligence on the part of the hospital. If a pre-employment screening WAS conducted then one has to ask just how detailed was the check or how good was the company that completed the check?
In case you aren’t quite convinced you should check out your prospective new hires before you bring them on board, check out this story about a retail employee. In a July 12, 2017 story on wqad.com, “A Des Moines County jury found him guilty in February of theft and burglary for stealing the safe and more than $4700 in cash from the hardware store where he had been working.” The story reported that he was, “sentenced as a habitual criminal because of his previous convictions.” http://wqad.com/2017/07/12/man-gets-15-years-for-stealing-safe-money-from-his-employer/ Again the question I have to ask is did this retailer complete a criminal history check before bringing this man on to their staff?
It may seem to you that you can’t afford to conduct pre-employment screening but you have to evaluate what your cost may be by not clearing applicants before they join your team. Let Loss Prevention Systems Inc. help you stay profitable and safe by checking out your candidates prior to you giving them a job offer.
Employee background checks are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
Are employee background checks really necessary? With tight budgets and an unemployment rate that is hitting new lows, hiring can be difficult especially for small retailers. National retail chains are now starting their entry level employees at $9 and $10 an hour in order to fill cashiering, salesfloor and stocking positions. Some offer a shift differential to employees who work overnight or early morning hours. Those same retailers can also cut prices to the point that it makes it difficult for the mom and pop shops to compete with them and keep customers. In this competitive environment it becomes increasingly difficult for the small and medium shops to not just retain help but hire new workers. On the surface it would seem that pre-employment screening would increase that difficulty. A prospective employee may be swayed to another job by the prospect of higher pay or a quicker start date. What about the cost of conducting those employee background checks? Is it even in the budget? I would like to pose another question to retail owners who are on the fence on this. Can you afford not to conduct checks?
Employee background checks conducted by a company that specializes in them will identify potential applicants with criminal histories or other anomalies in their past. A pre-employment screening can be customized to what the prospective employer wants to be sure is NOT on an applicant’s record. A delivery company may be concerned about a driving record. Someone who is going to be working around heavy equipment probably should not have an arrest record for drug or alcohol related offenses. A quality check will look at where an applicant has indicated they have lived on their application. Why is this important? If a person is moving around a lot they could be running from a criminal past. Maybe they are trying to avoid bill collectors. That carries its own concerns do you want to hire someone with financial problems? There are a number of other items that can be checked and the details can be discussed with the company you hire to do your checks.
At this point you may be thinking that you have an application in hand and you will conduct an interview so you should be able to determine whether a candidate will be okay. If this is your position consider this story from whotv.com, “Fort Dodge Sex Offender Accused of New Charges Against Minors”, October 10, 2017 by Kelly Maricle. According to the report a hospital worker was charged with three counts of sexual abuse 3rd degree (2nd offense) and three counts of sex offender registry violations against minors. http://whotv.com/2017/10/10/fort-dodge-sex-offender-accused-of-new-charges-against-minors/ How did a registered sex offender get a job in a location where he would be in contact with minors? There is no indication whether employee background checks were conducted by the hospital. If there was not a check conducted then it seems there would be negligence on the part of the hospital. If a pre-employment screening WAS conducted then one has to ask just how detailed was the check or how good was the company that completed the check?
In case you aren’t quite convinced you should check out your prospective new hires before you bring them on board, check out this story about a retail employee. In a July 12, 2017 story on wqad.com, “A Des Moines County jury found him guilty in February of theft and burglary for stealing the safe and more than $4700 in cash from the hardware store where he had been working.” The story reported that he was, “sentenced as a habitual criminal because of his previous convictions.” http://wqad.com/2017/07/12/man-gets-15-years-for-stealing-safe-money-from-his-employer/ Again the question I have to ask is did this retailer complete a criminal history check before bringing this man on to their staff?
It may seem to you that you can’t afford to conduct pre-employment screening but you have to evaluate what your cost may be by not clearing applicants before they join your team. Let Loss Prevention Systems Inc. help you stay profitable and safe by checking out your candidates prior to you giving them a job offer.
Employee background checks are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
The store I work for is preparing for inventory and that preparation has made me think about electronic article surveillance and other things that make a difference in store shortage results. As a Loss Prevention Manager with 13 years of experience and an additional 5+ years of Retail Loss Prevention Associate experience I have a number of pointers I would like to share. My tips are just those, tips and suggestions but they served me well in my work in big box retail stores so they can help you too. What are some of the issues that can have a negative effect on a store inventory and what are the solutions?
Problem: The biggest obstacle to ensuring you have great inventory results is a failure to use clothing security tags and electronic article surveillance towers in your store. Without merchandise protection shoplifters and dishonest employees are free to steal and there is no way to recover these losses.
Solution: Install electronic article surveillance towers at your points of entry and exit. Also, use clothing security tags on all of the merchandise your store sells.
You may be wondering what good this will do in preparation for this year’s inventory if it isn’t going to have an immediate impact. I will discuss that after I clarify what hard tags are and how they work.
Clothing security tags are retail anti-theft devices that are attached to merchandise and will activate alarms in electronic article surveillance towers. Tags can be hard tags that pin to merchandise and require a specially designed detachment tool to remove them. They also come in a soft label version that is peeled from a roll and adheres to product packaging or manufacturer tags. This type of tag cannot be removed but has to be deactivated at the point of sale where the pads are usually located. Both styles of tags provide a visible deterrent to shoplifters who might try to steal the products. As mentioned the tags also set off alarm towers when the protected merchandise is carried into the detection area of the towers. Alarms elicit employee response and merchandise is recovered from the bad guys. I should also note that they aid in preventing accidental loss when a cashier misses Bottom of Buggy items that are tagged.
What other obstacles can impede great store inventories? Other things I have encountered over the years include:
Problem: Insufficient store preparation. Failing to look through all the places merchandise can fall or become hidden.
Solution: Take the time to look under fixtures and on top of display cases for merchandise that may have fallen or been placed there by a customer. Also do a thorough inspection of stockroom areas for possible stray items. Cash register stands are notorious for small items dropping into nooks and crannies. I have found merchandise tossed on top of sunglass fixtures and inside of trash cans we sold. I have also found stashed goods in drink coolers and desk drawers. Rule of thumb, if it opens look inside of it.
Problem: If you have merchandise on peg hooks and items get mixed up you could wind up with incorrect inventory counts. For example a peg hook may have a certain type of pen on it. If the first pen pack is not the same as the others and the inventory crew scans it and only counts the pieces behind it for a total quantity it will throw off inventory numbers.
Solutions: Have someone go through a few days before inventory and inspect all of the peg hooks. If you have too many pegged items, split the job up but get it done. Even if the packages are the same prices the store inventory counts will be off.
Problem: Theft on inventory night by inventory or store personnel.
Solutions: Be sure all items have clothing security tags on all merchandise and have someone monitoring the electronic article surveillance towers. Should an inventory team member or a store employee attempt to steal, you will have a chance to recover it at the towers.
Problem: Counters who are inaccurate.
Solutions: Be sure to have random audits of all areas. I suggest focusing on last year high shrink departments and high dollar departments such as jewelry.
While all the problems you could come across can’t be listed this is a good starting point. Loss Prevention Systems Inc. is also a great resource for information and technology to help you prevent theft and fraud in the future. They can help you improve your shortage results and make your store more profitable.
Need information on clothing security tags? Give us a call at 1.770.426.0547 now.
Employee theft- 4 WC Blog 591
Stop Shoplifting-3
What Does Employee Theft Look Like?
Just the other day I was listening to my daughter tell me about a new store manager that has been hired for their retail building. As she was talking to me I realized she was telling me about a problem I am aware of but had never considered it in terms of a type of employee theft. The new store manager is addressing the issue right out of the starting gate and I must say I am impressed. The issue that has plagued this particular store is that of changing employee availabilities. Employees in retail should be hired with the expectation that they will work varying shifts, nights, weekends and holidays. A new person may be hired with the understanding there is a specific day or time of day once or twice a week they cannot work. This could be for school, childcare or a second job but that limitation should not be for weekends off or no night or evenings at all. The sad thing is I have seen it all too often, a candidate is hired, starts the job and within a few weeks or months they are changing their availability. This was the problem my daughter’s store was contending with and it was stripping the management team of night and weekend coverage. The store manager’s had been approving these requests. This issue had a snowball effect and had the unintended consequence, in my opinion, of making it more difficult for the store to stop shoplifting.
Training to reduce employee theft of any type is a must for any retailer interested in maintaining a profitable store. Theft comes in many forms, as you can see above. Being able to identify and deal with those problems before they get out of control is important. Loss Prevention Systems Inc. has specialized training available to store managers. This training will provide managers with the necessary skills to significantly reduce their exposure to dishonest employee activity and shoplifting. These skill sets lead to reduced shortage and more profit.
In what sense was permitting workers to change availabilities a form of employee theft you may ask? It was not (and is not if you are contending with it yourself) overt like passing merchandise to a friend. It is not the same as stealing cash from the register and pocketing it. It is stealing from the management team the ability to adequately cover the store with enough people. It is stealing from other employees by requiring them to work the less desirable shifts and the weekends while the employee who is permitted to restrict their availability gets the preferred time slots. It is stealing from the morale of the entire team as people get short-tempered and snippy with each other and customers.
How does it become more difficult to stop shoplifting when availabilities are permitted to be restricted? The same people are constantly placed on the weekend schedules and when one or two of those employees call out for a shift there may be no one to replace them. That reduces floor coverage and while I have limited experience with it I have seen a pronounced impact in my daughter’s store. She has closed the store with herself and one other employee on more than one occasion. She has told me of problems with finding multiple tags from clothing on the floor after suspected shoplifters have left the store. With too few people, the staff cannot adequately provide sufficient customer service to deter the thieves. There are not enough people so one can stay near the doors in case of a clothing alarm activation. Limited availability does impact merchandise shortage due to shoplifting.
So what has this new store manager started in his first week in the store? He has told the entire team that for the first six months of employment no availability changes are permitted. Requests for availability modifications have been met with employment terminations for two people so far, as I understand it. I say bravo to the manager for getting a major problem under control.
Even if you don’t want to consider allowing availability changes to be a form of theft, other things like time card fraud and price manipulation are. Training to reduce employee theft can help managers navigate the sometimes murky waters of what is and what is not theft. It can also enlighten you to methods your employees are stealing from you and you did not know it. Likewise, training to identify and stop shoplifting will also add to the store’s bottom line. Let Loss Prevention Systems Inc. be the portal to all of training your management team will need to lead a fair and profitable team.
For more information about employee theft contact us or call 1.770.426.0547
Just the other day I was listening to my daughter tell me about a new store manager that has been hired for their retail building. As she was talking to me I realized she was telling me about a problem I am aware of but had never considered it in terms of a type of employee theft. The new store manager is addressing the issue right out of the starting gate and I must say I am impressed. The issue that has plagued this particular store is that of changing employee availabilities. Employees in retail should be hired with the expectation that they will work varying shifts, nights, weekends and holidays. A new person may be hired with the understanding there is a specific day or time of day once or twice a week they cannot work. This could be for school, childcare or a second job but that limitation should not be for weekends off or no night or evenings at all. The sad thing is I have seen it all too often, a candidate is hired, starts the job and within a few weeks or months they are changing their availability. This was the problem my daughter’s store was contending with and it was stripping the management team of night and weekend coverage. The store manager’s had been approving these requests. This issue had a snowball effect and had the unintended consequence, in my opinion, of making it more difficult for the store to stop shoplifting.
Training to reduce employee theft of any type is a must for any retailer interested in maintaining a profitable store. Theft comes in many forms, as you can see above. Being able to identify and deal with those problems before they get out of control is important. Loss Prevention Systems Inc. has specialized training available to store managers. This training will provide managers with the necessary skills to significantly reduce their exposure to dishonest employee activity and shoplifting. These skill sets lead to reduced shortage and more profit.
In what sense was permitting workers to change availabilities a form of employee theft you may ask? It was not (and is not if you are contending with it yourself) overt like passing merchandise to a friend. It is not the same as stealing cash from the register and pocketing it. It is stealing from the management team the ability to adequately cover the store with enough people. It is stealing from other employees by requiring them to work the less desirable shifts and the weekends while the employee who is permitted to restrict their availability gets the preferred time slots. It is stealing from the morale of the entire team as people get short-tempered and snippy with each other and customers.
How does it become more difficult to stop shoplifting when availabilities are permitted to be restricted? The same people are constantly placed on the weekend schedules and when one or two of those employees call out for a shift there may be no one to replace them. That reduces floor coverage and while I have limited experience with it I have seen a pronounced impact in my daughter’s store. She has closed the store with herself and one other employee on more than one occasion. She has told me of problems with finding multiple tags from clothing on the floor after suspected shoplifters have left the store. With too few people, the staff cannot adequately provide sufficient customer service to deter the thieves. There are not enough people so one can stay near the doors in case of a clothing alarm activation. Limited availability does impact merchandise shortage due to shoplifting.
So what has this new store manager started in his first week in the store? He has told the entire team that for the first six months of employment no availability changes are permitted. Requests for availability modifications have been met with employment terminations for two people so far, as I understand it. I say bravo to the manager for getting a major problem under control.
Even if you don’t want to consider allowing availability changes to be a form of theft, other things like time card fraud and price manipulation are. Training to reduce employee theft can help managers navigate the sometimes murky waters of what is and what is not theft. It can also enlighten you to methods your employees are stealing from you and you did not know it. Likewise, training to identify and stop shoplifting will also add to the store’s bottom line. Let Loss Prevention Systems Inc. be the portal to all of training your management team will need to lead a fair and profitable team.
For more information about employee theft, contact us or call 1.770.426.0547
