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Pre-employment screening processes luxury retailers in Australia should be on top of

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Published
08/20/2021

Australian luxury retail stores invest a lot of money in technology meant to prevent shoplifting or smash-and-grab thefts, and it’s very good that they do so. Their merchandise has a very high street value and it’s very easy to dispose of. What about internal theft?

 

What are the costs of internal theft?

According to several studies, three out of four employees steal from their employer. What do they steal? Whatever they can. It doesn’t matter if they’re happy with their job or their salary, if they can get away with stealing something they will. In many cases, it’s small stuff - like office supplies, pens, staplers, etc. If it fits in their bag they’ll take it. Or they will use office equipment like printers and copy machines for personal purposes. It doesn’t look like much, but the costs to the employers are huge.

Now imagine the costs of employee theft in a luxury store. We’re no longer talking about a $1 pen, but a $1,000 Louis Vuitton bag. And this is hardly the most expensive item an employee in a luxury shop might be tempted to steal.

Estimates say that employee theft accounts for  some 42% of inventory loss in American shops, and the situation in Australia is roughly the same.

This brings us to the pre-employment screening checks Australian luxury retailers can use to prevent employee theft.

 

What are employment background checks for retailers?

When you’re looking to hire someone to work in a luxury store, you’ll want to check their employment history and their knowledge of the products you’re selling. The perfect employee should know everything about fashion, designer products, handbags, fur coats, jewelry, basically whatever it is they're supposed to sell to your clients. And they have to have the right attitude as clients that walk into such stores tend to be very demanding.

However, you also need to have a look at their criminal record via an official document like a criminal history check obtained from an accredited and legitimate check provider. You cannot possibly hire someone who was convicted of theft for your store. Nor can you afford to hire someone involved with street gangs and criminal activity.

The easiest way to make sure your new employee is a decent person with no criminal history is to order a quick background check with an online agency. Online service agencies are accredited with the Australian federal government and their checks are just as good as one obtained from the local police department, only faster and more convenient. Everything is done online, the ordering part takes just a few minutes and the result comes back in a few days. If you order a check on Monday, by Wednesday you can have the new employee cleared and ready to start working.

 

Other internal controls & red flags

Should such a check be enough? Not really. Remember there’s a first time for everything. You should always use security systems, like camera and RFID labels on your products.

Also, you should keep an eye on a worker at all times if you are aware that one of them may pose a risk. For example, if one of them is going through a rough period and has money issues, monitor them closely. You never know when they might decide that stealing a diamond ring or a $5,000 bag is the solution to their financial problems.

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