Until recently, the retail industry considered shrinkage a problem caused primarily by shoplifters outside of the organization. Modern research, however, suggests employees, not shoplifters, are one of the top causes of shrink in the retail sector — leading many companies and business owners to rethink their theft prevention strategies. The Food Marketing Institute's “Supermarket Security and Loss Prevention 2007” report estimates that nearly 40 percent of total shrink comes from employees stealing money or merchandise, with checkout and service departments accounting for 75 percent of employee theft.
In a weak economy, theft and violent incidents trend on the upswing, and supermarket and grocery store chains need to establish effective risk prevention measures. By analyzing opportunities for theft and violence throughout an organization, store owners can develop and implement a consistent background screening policy to mitigate poor and negligent employment decisions and protect themselves from costly litigation. This is especially important considering that any supermarket or grocery chain can be held liable for negligent hiring and retention of an employee if the company fails to conduct a comprehensive background check.
In today's struggling economy, not knowing who is working in your grocery store leaves your business open to liability that can lead to multimillion-dollar lawsuits and lost revenue due to theft and workplace violence — a significant twofold challenge facing businesses across the supermarket and grocery store industry. In an effort to effectively combat large losses, growing shrinkage statistics, and increasing liability risks, the industry is beginning to realize the value of employee background screening.
Conducting background checks on prospective employees can reveal valuable information about convictions for crimes such as sexual assaults, theft from a previous employer, drunk driving or other traffic violations — and theft from a previous employer. Background checks can also identify potential high-risk employees, individuals who have lied during the application process, and those who have failed to fully disclose a criminal past.
Often, supermarket chains only screen low-level employees and not top-level executives. But high-ranking employees can cost a company a fortune. Consider this: While a dishonest cashier might manage to steal money from a cash register, a single dishonest executive with access to critical company information can cost a grocery store millions of dollars.
To avoid such costly scenarios, establishing a consistent background screening policy across all employment levels is fundamental for organizations throughout the supermarket and grocery industry. Background checks help keep shrinkage to a minimum and curtail violence and other inappropriate behavior in the workplace, resulting in reduced liability concerns. A company's screening policy should define what is needed for each position level in accordance with organizational goals and objectives. Further, a thorough screening process will convey to employees that the organization is concerned with ensuring the highest level of workplace integrity.
William Hauswirth
President
IntelliCorp
William Hauswirth is president of IntelliCorp, a wholly owned ISO subsidiary. IntelliCorp is a premier provider of information for background checks and screening of potential employees, tenants, and volunteers, which maintains the most complete and reliable data repository of nationwide criminal records.
Mr. Hauswirth is also senior vice president of the AISG division and is responsible for the technical advisory services, which include Engineering and Safety Service (E&S™), Premium Audit Advisory Service (PAAS™), and Property Claim Services® (PCS®).
He holds a number of professional designations, including Chartered Property Casualty Underwriter, Associate in Premium Auditing, Associate in Information Technology, Associate in Insurance Services, Certified Insurance Premium Auditor, and Associate in Risk Management.