A 2014 study by the University of Cincinnati reported 64% of the 314 small businesses surveyed had experienced employee theft. While the study only took a small sampling of businesses into account, the percentages line up with nationwide numbers on employee theft. The financial impact to employers when employees commit larceny or embezzlement is massive. In fact, the North Carolina Department of Public Safety states that employee theft in the workplace accounts for approximately 80 percent of business losses related to crime.
Employee Theft in Colorado Leaves Customers Concerned
Employee theft also creates a sense of insecurity for customers. In October 2014, an employee of HuHot Mongolian Grill in Sheridan, Colo. was arrested for allegedly stealing the credit card information of multiple customers. Another employee of the restaurant saw Michael Alexander Stephens, 31 years old, in possession of a credit card reading device. Stephens had a prior history of employee theft and had even served time in prison for burglary. A thorough background check would have revealed the previous history of crime to the employer. Colorado criminal background checks are offered statewide or by county.
Background Checks Save Employers Time, Money and Frustration
Statistics from the National Institute of Justice showed that more than 82 percent of property crime offenders committed a repeat offense. Property crimes include a number of offenses such as burglary, larceny and theft–all of which significantly cost an employer when an offense takes place in an employer’s establishment. The National Federation of Independent Business recommends that employers screen applicants by obtaining background checks, checking references and contacting previous employers. Employers that utilize background checks would be able to see the criminal history of an applicant and make an informed decision regarding the potential hire.