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Don't fall victim to employee theft this Christmas

Posted on in Business News

Looking to take on seasonal staff this Christmas? Beware the pitfalls which could damage your business, warns Tracy Canning, Senior Vice President and Managing Director of First Advantage Europe Ltd writing for Retail Gazette.

The latest statistics on employee theft in the retail industry are telling. On average, each theft committed by an employee costs almost seven times that committed by a customer, according to a report published by the British Retail Consortium (BRC) - and these statistics may not tell the whole story as fewer than 40 per cent of such thefts were reported to the police last year.

As reported in Retail Gazette (30th September), while only accounting for 0.7% of crimes overall, employee theft was the third largest type of crime by value. While it was the only one of the key offences that dropped in terms of volume and value from the previous year, it remained at its second highest level for nine years.

First Advantage research shows that, when checking the CVs of contingent and seasonal workers, we uncover significantly more inaccuracies compared with the CVs of permanent workers. Nearly half of education verifications on seasonal workers uncover discrepancies, while a third of employment history verifications turn up inaccuracies and discrepancies.

When it comes to managing the risks, organisations should consider developing an employee screening policy that includes carrying out identity checks, adverse financial checks and criminal record checks specifically on temporary and contract staff and not just those in permanent positions.

For retailers large and small, holiday hiring is a spike unlike the business-as-usual (BAU) hiring that happens throughout the year, so standard screening processes may not scale to meet the increased demand, so you should consider developing a sensible seasonal program according to risk and role.

Risk. Retailers face varying levels of risk depending on their business and business model. Electronics, computer and luxury-goods retailers, as well as those with significant online presence (where seasonal staff may be processing payment card details) face higher potential risk than those in other retail profiles.

Role. Just as you would not want to under-screen a candidate in a senior/managerial role in a high-risk position, neither would it be wise to over-screen entry level candidates with a one-size-fits-all screening program. Screening may be as basic as checking the most recent employer or as comprehensive as conducting criminal, credit, education, employment history, global watch-list and ID verification.

Consider your timings. With retailers searching and screening for the highest-quality seasonal workers, launching talent and screening campaigns are time sensitive - and time crunched. With many retailers hiring the bulk of their workers in the period from late October to early December, be mindful of turnaround time variances and how you can plan for potential delays. The screening program is important, but it doesn't have to derail your volume hiring process:

If you are hiring seasoned retail staff and are looking for an employment reference, be aware that your fellow retailer is experiencing the same volume pressures, and may not come back as quickly as they normally would.You may consider collecting documentation from the candidate to prove employment (e.g. P45, pay stub or bank statement) whilst the verification at source is underway or has gone past a certain number of days.

Need help?

If you're taking on staff - whether temporary or permenant - ActSmart can help.  Before you begin the job search process check out the Employment manual, which covers 3 key areas:

  1. Pre-Employment - covers the recruitment process so you can get the right people first time. Includes sample application forms and job description templates
  2. Employment - keep up to date with all the basics of employment law and employee rights
  3. Termination of Employment - covers issues such as disciplinary hearings, notice rights, fair/unfair dismissals and health issues

Once you're readyto take on staff, why not use the ActSmart jobs board, free for ActSmart subscribers! Not only will your jobs be listed on the ActSmart Jobs Board but also within the Experts Specialist Retail Community which gives you another opportunity to promote your latest job vacancies and cast the net even wider to find the best people.

If you need any more guidance, don't forget, ActSmart subscribers have access to 24/7 legal helplines to put your mind at ease and ensure you're doing everything by the book. 

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