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You are here: Home / 2016 / Archives for July 2016

Archives for July 2016

Loss Prevention: Background Check Effectiveness

July 5, 2016 by criminalchecks Leave a Comment

Performing background checks is an important part of any modern loss prevention strategy. Background check effectiveness can be achieved by developing a strategy with the help of an outside vendor. It stands to reason that any organization wants only qualified, suitable, and trustworthy people within its ranks. The alternative can mean, theft, inefficiency, accidents and any number of misfortunes that can hurt your bottom line. What’s more, companies that fail to properly vet their employees can become subject to litigation if those employees do anything which creates actionable damage to the public, their customers, or any other person or persons.

Background Check Effectiveness

In 2013, the retail market spent an aggregate 0.42 percent on loss prevention. It is estimated that of that fractional amount, less than 5 percent was spent on background checks. Loss prevention spending increased to just over 1 % in 2014 due to a spike in awareness of the issue of employee theft in retail stores. At the same time, many retail stores adopted a non-reaction policy toward shoplifting. This was done as a result of studies that showed traditional security responses to shoplifting hurt a store more on Public Relations than did the actual theft.

Consequently, retail chains began to spend less on their security provisions meant to guard against shoplifting and more on those aimed at preventing employee theft. First and foremost, this means stricter hiring standards – and with this, background checking is a natural companion.

Today, subscription to an ongoing background check service is a commonplace method that employers of all kinds are using to ensure background check effectiveness.

It’s impossible to say exactly how many ways a quality background check can prevent avoidable loss, damage, and even tragedy in your offices.

Examples of benefits of background check effectiveness:

  • Criminal records are a strong predictor of future behavior

While it’s true that many people are wrongly convicted or experience circumstances where they may have acted out of character and were convicted of a crime – by and large those who are convicted of a crime were so convicted because of criminal tendencies. It is a statistical reality.

  • Knowing who you are hiring

Applicants can put anything on a resume, and sometimes the best interviewers are also talented liars. Background check effectiveness will help you to boost your trust in trustworthy employees and weed out bad applicants.

  • Avoid negligent hiring lawsuits

All job creators owe the public and their clients the duty of hiring sane, safe, and competent staff. Failure to perform due diligence in hiring is a violation of this duty and can lead to negligent hiring claims.

The nominal price of background check effectiveness can save you and your firm from untold millions in preventable losses and misfortune.

Sources: http://www.csoonline.com/article/2845058/loss-prevention/cost-of-retail-crime-skyrockets-nearly-30-percent.html, http://www.chainstoreage.com/article/study-shrink-costs-us-retailers-42-billion-employee-theft-tops-shoplifting

Disclaimer: The information on InstantCriminalChecks.com is governed by our Terms of Use and is never intended as legal advice.

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