Retail employee theft is a major problem for Canadian businesses – and it can cost a lot more than you might realize.
According to the National Retail Federation 2019 National Retail Security Survey, in 2018, an average of 322.6 employee-related theft apprehensions were made, 335 terminations, 91 prosecutions, and 159.8 civil demands.
The average dollar loss per dishonest employee in 2018 was $1,264.10. Retailers with 500 or fewer locations had a slightly higher average loss of $1,377.12.
Of the survey respondents, 5.6% of retailers experienced an average loss of $5,000 or more.
The monetary cost of retail employee theft remains high – but there are other consequences to consider.
Employee theft doesn’t just affect your bottom line by the amount they steal; it also has long-term effects on other areas of your business, such as:
- Employee turnover. The hiring process takes time and money – extra costs on top of what you may have already lost.
- Training a new employee. This, too, can take up more time and money, plus it can also affect your customer experience.
- Blow to employee morale and company culture. Having a staff member who is stealing can also affect the rest of the employees, either by bringing down their overall attitude or work enjoyment, or even by influencing them to do the same.
Retail loss prevention, like security cameras, inventory management, and checks and balances processes are the key to catching employee theft — but what about preventing it in the first place?
By starting loss prevention at the hiring process, you can choose employees who are less likely to commit theft, thus minimizing the problem.
For instance, with a pre-employment screening from Triton Canada, you could easily verify:
- Credit check
- Employment history
- Educational history
- Police checks
- And more.
Screen candidates during the hiring process to minimize employee theft today. Contact Triton Canada at 1-844-874-8667 or visit https://www.tritoncanada.ca/business/international-background-checks.