Criminal Background Checks + Credit Checks: The Perfect Combination For Loss Prevention
The National Federation Survey released their stats for 2022 and there is some great information in there for retail HR leaders and recruiters. The survey was provided to loss prevention and security executives in the retail industry in the US. Canadian HR leaders at retail, you will likely find this study helpful.
Let’s talk retail shrink. As you likely already know, retail shrink looks at preventable loss caused by human error or deliberate efforts. Retail shrink looks at the actions retailers (or businesses at large) are taking to reduce theft and fraud. One of the most important stats in the article looked at retail shrink across the US, 2020, compared to 2021 and the year-over-year number revealed losses of 94.5 billion dollars, an increase of almost 4 billion dollars or 4%. The survey also revealed that post-pandemic retail theft has risen by over 71%
So, what does this mean to you as an HR leader at retail? You direct efforts can help to curve losses by knowing more about your candidates and making the most informed hiring decisions. At retail, two key background checks stand out as ways that you can independently validate your candidate’s history.
Criminal Background Checks
Criminal background checks are essential to any hiring process, as they help identify potential red flags in a candidate’s past. These checks can reveal criminal records, including convictions for theft, fraud, or other criminal offences. By reviewing a candidate’s criminal background, an employer can better determine whether an applicant is high-risk or suitable for a particular job.
When selecting a background check provider, you want the most accurate, secure, and current criminal background checks available. Triton’s comprehensive platform includes access to criminal record databases across Canada, providing a thorough and efficient screening process. By partnering with Triton Canada, retailers can ensure they hire trustworthy employees who are less likely to engage in theft or other dishonest behaviour.
Credit checks can also provide valuable insights into a candidate’s financial responsibility, and potential theft risk. Credit reports reveal an individual’s credit history, including credit cards, loans, and other financial transactions. A poor credit score can indicate a higher risk of theft. It may suggest that the individual is in financial distress .
While credit checks are not commonly used in the retail industry, they can be a valuable tool in the hiring process. Employers can use credit checks to identify potential red flags and assess the applicant’s financial responsibility. By incorporating credit checks into the hiring process, retailers can reduce the risk of employee theft and increase overall profitability.
Criminal background checks used in conjunction with credit checks are a powerful combination for better hiring leading to reduced loss.
In Canada, the leading provider of criminal background checks is Triton Canada who is the official vendor of record for criminal background checks for the Ontario government. In addition to our flagship criminal background check solution, we also offer a centralized platform where you can obtain a full range of background checks, including credit checks. To learn more about our background checks to tighten your recruitment and hiring process, please visit https://www.tritoncanada.ca/background-checks-for-the-retail-industry.