In 2017, retailers who participated in a national retail security survey reported that employee/internal theft amounted to 30% of inventory shrink in the previous year.
The report also found that the average loss of dishonest employee cases increased from $1,233.77 to $1,922.80.
CBC News reported that each year, employee theft costs Canadian businesses $1.4 billion.
According to Loss Prevention Media, retail employee theft can take many forms. The employee might:
- Void transactions and pocket the cash.
- Ring up a reduced price on a product to hide theft from the till.
- Overcharge a customer and pocket the difference.
- Hide stock in trash bins and collect it later.
- Save customer receipts and use them to “return” stolen products.
- Process a fake return, steal the money, or credit his or her own credit card with money allegedly paid back to a fake customer.
- Process a return for a larger amount than the amount of the product and pocket the difference.
- Forge inventory logs.
- Falsely use employee discounts.
- Assist friends or family members in theft.
- And more.
While there are ways to catch employee theft in the act, one of the best methods is easy to overlook: prevention.
By using pre-employment screenings, you may be able to stop employee fraud and theft before it even happens.
You can use pre-employment background screenings for:
- Criminal background checks. This can help determine if a candidate has a prior criminal record.
- Employment verification history. This verifies where an employee has worked in the past and can give profiles on items such as the candidate’s duties, salary, performance, and more.
- Reference check verifications. Up to 30% of resumés contain exaggerated or inaccurate statements. A reference check verification does more than just measure and report on a person's technical skills; it also gives you valuable insight into whether or not a candidate will fit into your corporate culture.
- Credit check verifications. One case study from Loss Prevention Media analyzed employee theft at a specialty retailer. It found that confessions contained a “financial them” for employee theft. A proper credit check will allow you to assess the candidate’s financial status and lower the risks involved in hiring someone who is under financial stress.
All of these services can help you determine if a candidate has the right background and moral character for your organization.
Prevent retail loss today. Contact Triton for more information on retail employee screening.
Call 1-844-874-8667 or visit https://www.tritoncanada.ca/bu....