Is Pre-Employment Drug Screening Worthwhile In Today’s Culture?

May 3, 2019 by Leave a Comment

There are many ways for store owners to reduce the risk of employee theft and fraud. Background checks supplement interviews and screening questions on a job application. Manager training to know the signs and indicators that a worker may be engaging in theft activity of some sort is another preventative step. Electronic Article Surveillance systems and tags are helpful in deterring shoplifters and dishonest employees. Certainly Closed Circuit Television (CCTV), Public View monitors and mandatory package checks before leaving work all play a part in preventing internal criminal activity. One of the best tools an employer can use to reduce the chance they will even hire a thief in the first place is the use of pre-employment drug screening. The prospective employee would go to the lab, fill the cup and labs would send off the sample to have it checked for illegal substances. That has been the most common of the drug tests and many employers have relied on it to help them keep their stores profitable and safe. 

     Is this still an effective method for owners to use? With states loosening their own laws surrounding marijuana use it is a mixed bag. Not all states are legalizing it and it is still a federal crime to use, grow, distribute or possess it. So if you are in a state where it is still a crime to use marijuana and an applicant applies to a job with your company but he/she comes from a state where it has been “legalized” do you have them take a pre-employment drug test? What happens if they take the test and results show they use marijuana, do you not hire them even though it was “legal” where they came from? This can pose a dilemma for store owners. If you do hire them, do you put yourself at risk for discriminating against someone from your own state who failed and did not get hired based on that result? 

     Leaving the marijuana out of the equation for the moment, there is still room for drug testing in the workplace, both pre-screening and random drug testing of employees. Drug screening can identify other illegal substances in addition to marijuana. According to thebalancecareers.com, “A typical drug test for employment purposes screens for drugs including amphetamines, cocaine, marijuana, opiates, nicotine, and alcohol.” While you may decide to overlook positive results for marijuana you can still turn down applicants for the other drugs. States may be legalizing marijuana but the debates about the safety and effects of the drug on behavior remain a concern. Just because it is legal does not mean you necessarily want someone who uses this drug or any other drug working for your business. Pre-employment drug screening is still an effective tool in your efforts to combat theft and safety concerns. 

     Why test for drugs in the first place? By testing and screening out applicants who test positive you significantly reduce the risk of hiring someone who very well may steal from your store. It may be cash or merchandise but they have a habit to feed and they still have bills to pay and they are not going to feed that habit on a retail job. Working in the store gives them access to money and merchandise that will provide the resources for their addiction. Another reason to test is to keep your store safe. Someone who is illegally using drugs or coming to work under the influence of drugs or alcohol can be a cause of an accident or can be the victim of an injury in the workplace incurred while under the influence. Whether they cause the accident or are the victim of an accident, you can end up paying for it. There is also the safety of your other employees to consider. Someone under the influence of the wrong drugs can be unstable and volatile. What is it that is going to trigger a violent action on their part? Giving them a direction or task they don’t want to do? How about a customer that says something that sets off your employee. There is no place for violence or theft in the workplace and pre-employment drug screening can help prevent both from happening. 

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I Want Shoplifters To Steal From My Store!

March 31, 2019 by Leave a Comment

Really?? Is that what you are thinking? Because if you do not have an active shoplifting prevention plan that you work, then you might as well put up a sign that says “Shoplift Here Because We Do Not Care!” That is what the shoplifters hear and see.  

So to have a great plan in place for shoplifters to steal, here are the things you need to do: 

  • Poor customer service. Shoplifters love it when they come into your store and the customer service is lax, mediocre or simply non-existent. They do not need your help to steal, just privacy. 
  • Make sure you do not train your employees to spot and/or deter shoplifters. Lazy, untrained store staff are the shoplifter’s best friend. You really cannot say “steal my stuff” better than that. 
  •  DO NOT BUY a Sensormatic anti-shoplifting system from Loss Prevention Systems! We are in the business of shutting down shoplifters. 
  • Make sure that you keep the lighting dim. Do not replace lights when they go out especially in dark, hidden areas of your store. It makes the shoplifter’s job easier. 
  • Do not put those pesky little Sensormatic hard tags and labels on your merchandise. It hurts the shoplifter’s ability to resell your stuff.  
  • Make sure that your staff never greets anyone when they come in. If you are not going to supply good customer service anyway do not bother to look up from your smart phone. You certainly do not want to have a low score in that on-line game you are playing. Besides, greeting shoplifters makes them feel uncomfortable because they have been noticed. 
  • Make sure shoplifters have a clear unobstructed path out of your doors. That way the arm load of merchandise they have in hidden or in plain sight does not get in their way. Actually it will make it more convenient for them to load up even more. 
  • If you want to at least feel a little better about all this put up signs that say “No Shoplifting” or “Shoplifters Will Be Prosecuted”. This sends a clear signal to the shoplifters that you have no clue about what it takes to stop them. It is kind of like that old joke; putting up shoplifting signs is like wetting your pants in a dark suit. You feel warm but no one notices. 
  • If you do spot a shoplifter, do not stop them. This is the best way to spread the word in the shoplifting world. They will flock to you like flies to….. They will clean you out just in time to move in next season’s merchandise. Hey, this also saves you time and payroll dollars in the inventory process since there is less to count. 
  • Make sure you have a CCTV system since shoplifters do not care about cameras. They know you do not have the payroll dollars to watch them full time and they know that they will be long gone before you would have any opportunity to review the recording. 

On the other hand shoplifting prevention is not all that difficult. Just do the opposite of the items listed above. We can help you with all of it from procedures, training and the installation of a brand new Sensormatic system. 

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Not Planning For Summer Customer Traffic In March Is Madness

February 28, 2019 by Leave a Comment

Not Planning For Summer Customer Traffic In March Is Madness

Have you ever noticed how quickly big box retailers will transition from the Christmas season in their “seasonal” departments to jumping into the new Spring/Summer merchandising sets? They don’t play around they are very strategic in their planning to get a jump on their competition. They use their mini-seasonal areas to drive the Valentine’s Day and Easter business but the large areas used for patio sets, plants, gardening, etc. get changed shortly after the Christmas season is over. Smaller retail stores should be doing their own transitions at this time too. It’s madness if you haven’t started putting out the Spring/Summer merchandise for your type of store by March.

     I understand there are some types of retail stores where it would seem a bit more difficult to appeal to a seasonal change. I think of luggage stores or perhaps a “mom and pop” corner grocery store where customers are used to purchasing their staple food items. But let’s think about this for a moment. Is there room for even the least seasonal retailer to adapt to seasonal sales? I would suggest there is room and it may take a bit of getting out of a comfort zone. Let’s say you sell luggage and people are going to come to your store who travel at all times of the year. Is it possible for you to carry some items that may be more colorful to appeal to a summer traveler? Think about how much easier it would be to locate a unique or brightly colored suitcase if it is on an airport carousel. While some shoppers (such as I) might prefer a traditional dark colored carry- on bag or briefcase, there are those people who fancy a more whimsical style. A change of colors and patterns might draw in more customers especially with the right touch of advertising and product placement.

     Mom and Pop grocers, sure milk, eggs and bread may be your bread and butter (pun intended) but is there any reason you couldn’t put out a display of Igloo coolers, picnic grills, aluminum foil, six-packs of soft drinks or beer? How about a front of store display with these items, grilling aprons and advertising for specials on lunchmeats, steaks and hotdogs directing consumers to your cooler section? Sometimes we all get in ruts and we fail to look outside the box for new and creative ideas to keep a business fresh and improve sales.

     There are the stores out there that just seem to always maintain the same set up and merchandising year in and year out. I can think of a local hardware store I sometimes go to when I don’t feel like fighting the other shoppers at the national hardware chain stores. When I do go to this particular store I usually have to search a bit to find what I need, it isn’t super neat but everything seems to be where it has been for the past fifteen years I have shopped there. It does make me wonder if the owner is trying to reach out to new customers or worries about the competition from the big box stores. A few changes now and again could probably make an impact on sales but that is a choice that owner has to make. What kind of changes would I suggest? I would put out new signs to let customers know about any sales that are running. Place gardening tools and gloves, tillers and lawnmowers at the front of the store. If the store has electronic article surveillance towers, upgrade them so that advertising panels can be interchanged and catch customer’s attention as they walk in.

     Seasons change and retail stores should too, before the beginning of the next season. Take a look at a national clothing retailer the next time you walk into a store. It may be January and they will start putting out swimwear when you are still wearing a jacket. Smaller retailers can take a lesson from the large chain stores. I am not saying to become them, but there are some tips and tricks you can take away. March is here and now is the time to rebound from your winter season and spring into action by driving those summer sales.

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An Attitude Of Service Or Just An Attitude? Attitudes Affect Customer Service

January 31, 2019 by Leave a Comment

This is going to seem a bit odd to some of you but I want to know if you have an attitude? Store owners, do you have an attitude? Store Managers, do you have an attitude? Has anyone taken a look at the attitude of their employees? EVERYONE has an attitude, the statement isn’t necessarily a negative it can be positive. The problem is we have grown accustomed to thinking of it with a negative connotation. Why is that? Because in some form or fashion we have adopted the idea that an “attitude” shows our independence or ability to be self-reliant regardless of what others think. At times it can be very course and abrasive to others. If that is your “attitude” how does that relate to your customers, or those who work for you? I would like you to consider for a moment that an “attitude” may look more like a chip-on-the shoulder than some sort of independence (in some cases if looks like a boulder more than a chip).

     An owner with a poor attitude makes the job more difficult for the managers who work for her or him. The “I’m the boss” temperament may be unstated but if that is how an owner thinks it can reflect into how they give direction and interact with their managers. It frequently means that no one else can have a better way of doing things and leads to a stale operation. I will also tell you that the negative attitude rolls downhill.  The way you interact with your managers will be reflected in how they interact with the store associates and they, in turn, have attitudes with the customers. I have seen it in action and I can tell you I have experienced it and have allowed it to impact my interactions with my team in spite of my best intentions. By the end of a workday, everyone leaves in a grouchy mood. 

     The attitude of the owner affects the attitude of the managers has a direct impact on your customers who don’t have to shop at your store. I happen to work for a company that has two stores in the immediate area. On more than one occasion we have heard comments from customers that they don’t like to go to the other store. They tell us the customer service is poor and the employees are not friendly. On the other hand the manager of the store where I work makes a point of telling the managers they are to do whatever they can to keep customers happy (within reason and without violating policies). Employees may get busy but they enjoy working for this manager. The atmosphere is welcoming and we make every effort to greet our customers and offer assistance when they walk into the building. I have gone into the other store and the climate is different. If a greeting is offered it is more of an obligatory hello that a genuine one.  

     What is the climate in your store? What do your managers and employees think about your management style? If you aren’t concerned think again. If your store employees are providing poor customer service to customers because of the treatment they receive it as a direct impact on sales and a direct impact on theft prevention. Shoplifters who have been interviewed have said that they target those stores where employees are unhappy. They don’t have to worry about someone trying to give them too much attention. If shoplifters aren’t receiving service, neither are your customers and that means no one is trying to sell let alone up-sell for a store. 

     Customer service starts with leadership. When the management team seeks to make the climate one where employees enjoy coming to work that attitude will be reflected in the interactions between workers and customers. Owners and managers cannot assume the team is happy. Truly anonymous employee surveys will help gauge what employees are thinking. They can also be a tool for seeking ideas about what employees might want to see done differently or an outlet for ways to improve. Happy employees make a world of difference. What is the climate in your world? Is everything great or is an attitude adjustment in order? 

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Resolved Or Solved? How Planning Can Make New Year’s Resolutions Work

January 1, 2019 by Leave a Comment

Have you ever noticed how we all anticipate a New Year will bring new and exciting things into our lives (or businesses) but after the first month we often realize that nothing is new or improved or better? In fact, we may be disappointed as the year progresses that problems we hoped would be resolved (read, “magically disappear”) are still there. We make resolutions at the beginning of the year that are meant to help “improve” or “fix” something we know is an opportunity but then we slide back into our routines and those “problems” don’t get any better.

     In retail, those problems may involve personnel issues such as hiring and retention. Concerns may be for store profitability including expenses, sales, and shortage. Maybe concerns are over what may be classified non-controllable expenses, building rent, taxes, etc. Wishing problems away is not a solution nor is a resolution. If you want to resolve to solve problems you have you need to create an actual action plan and then take a partner(s) to stick to it, often one of your store managers or department management team. As you look at the areas of opportunity and break them down you can find that correcting one area can make a significant impact on other areas. Let me give you an example of what I mean.

e.g You identify that you have an issue with excessively high merchandise shrink.

      You need to identify all of the possible causes of the shortage problem.

  1. Do you use retail anti-theft devices?
  2. If you use a Sensormatic security system are you tagging everything?
  3. What areas are your highest shortage departments and are they vendor serviced?
    • If they are vendor serviced are you checking in and out vendors?
    • Are you improperly tossing out of date merchandise rather than receiving vendor credits?  
  4. Is employee theft causing shrinkage you haven’t seen?
    • Do you complete pre-employment background checks before hiring?
    • Do you require pre-employment drug screening?
    • Do you know the signals to look for that would indicate an employee may be stealing?
  5. Do you control your compactor and who throws out the trash and if you have a baler who is crushing cardboard?
    • Employees and vendors who are stealing and have access to a compactor will toss out the empty packages they would otherwise leave behind.
    • Uncontrolled compactors mean anyone can throw away anything that looks like trash but some small items can be overlooked and thrown away and cause a shortage.

These are not all of the contributors to a shortage. You can continue to drill down and I would encourage you and your team to do so. The project doesn’t stop there. Once you have identified the issues you need to create an action plan to address each concern. The plan should also include benchmarks or measurements that will show you are doing what you said you would do. There must also be deadlines for completion.

     There are areas that will cross over and can be beneficial to each section. Let’s say that you have focused on shortage and you also believe you have a hiring/retention problem. It seems people are going in and out like a revolving door. You have to ask yourself are you hiring the right people in the first place. If your employees keep leaving it could be they have stolen from you to get what they want and they are leaving before you catch on to them. If you start doing background checks you will be more selective in who you are bringing on your team. You may have been hiring a lot of people with criminal records or spotty work histories. Being selective and hiring the right people can also build a more dependable workforce. This leads to improved morale, more initiative and a better work ethic overall. Improving your hiring can improve shortage results due to dishonest employee activity.

     Another example of crossover would be compactor controls. Start regulating who is tossing out the trash and you impact retail shrinkage but you may also find that merchandise that was being overlooked is now being stocked more carefully. Overlooked items are getting back on the sales floor. Not only do you reduce shortage you improve sales.

     Wishing the New Year will bring improvements is no way to operate a business. Planning and follow through on those plans will bring about the positive changes you want to see. Resolve that 2019 will be a year of growth and profitable sales! Happy New Year!

          

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Why Quality Background Checks Matter: The Benefits Of Using AMC

October 31, 2018 by Leave a Comment

Hiring employees is hard enough for retail owners without the pressures of hiring seasonal staff during the holidays as many stores are now doing. Under normal circumstances, managers and owners of retail businesses are stretched thin keeping a store operating efficiently. When turnover occurs more time is taken up as those managers are forced to focus their energies on filling holes in the weekly schedule. Job ads are posted and often paper applications are handed out as interested persons come in to respond to the ad or a “Help Wanted” sign posted in a window. Then there is the security risk that is involved in the hiring of new employees whether they are seasonal or to be a regular member of a team. A new hire carries an unknown quality and there is always the off chance that with even the best interview a criminal can slip between the cracks, the proverbial wolf in sheep’s clothing.

     At Loss Prevention Systems, Inc. we are well aware of the challenges the hiring process poses, especially in the small to mid-size store market. In order to streamline the Human Resources piece of your business and to significantly reduce the chances that criminals will be brought on board in the process, we have introduced the Applicant Management Center (AMC). Here are some of the featured benefits we offer to employers that use our AMC to fill positions regardless of the tenure of that position:

  • Employers that rely on paper applications or in-store job kiosks limit applicants to hours of store operating hours. The Applicant Management System offered by LPSI provides interested parties 24/7 access your job application.
  • With the AMC employers can advertise an unlimited number of positions.
  • Have you dealt with sifting through untold numbers of applications, many of which are from people with none of the qualifications you are looking for in an employee? By using the AMC services of LPSI you have the ability to create qualifying questions that will flag responses. By doing so you can eliminate unqualified candidates from your applicant pool and streamline the hiring process.
  • Enjoy the benefit of communicating with applicants directly through the Applicant Management System. No more sorting through applications, typing in email addresses or risking emailing the wrong person.
  • Then there are those very real concerns over increased security risks that come with hiring. The Applicant Management Center assists store owners with mitigating concerns of hiring someone who may pose safety and/or security related problems. Owners can initiate pre-employment background checks on applicants directly through the AMC. Taylor those background checks to include what is important to you, driving records, education, criminal history, sex offender registries and so much more.
  • Drug Screening can also be initiated through the AMC helping you to eliminate illegal substance users who may cause accidents to themselves or customers. They can also be potential thieves trying to support a habit. LPSI can reduce the chances you hire someone with a drug use problem.
  • How about credit checks? Who wants to take a chance of hiring a person with a poor credit history to work around cash or a point of sale for that matter? All consent and agreement forms to conduct credit checks, background checks and drug screenings can be maintained, signed and stored in one central location in the AMC.
  • Last but not least the AMC is affordable! There is no need to break the bank to improve your hiring process.

For those readers still feeling unsure about the AMC and the background check process Loss Prevention Systems, Inc. is offering free demos of our product. LPSI recognizes that there is a direct relationship between the hiring process and store profitability. We can help you avoid hiring pitfalls. Use the Applicant Management Center and save yourself time, money and unnecessary shortage during this holiday season and throughout the year.

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Employees are harder to find should this impact the way you conduct seasonal hiring?

October 31, 2018 by Leave a Comment

As of September 2018, the national unemployment rate is down to 3.7% according to ncls.org. As a retail store owner thinks about what this means for you in terms of trying to hire to fill job openings including seasonal hiring for the holidays. With an employment rate of 96.3% that leaves a sparse workforce as a hiring pool. I have read articles by those who think that with a dwindling number of people seeking work employers are going to have to forego pre-employment background checks. They seem to believe that the need to hire outweighs any baggage the job candidates bring with them.

     Not only are employment background checks being called into question for the reasons stated above there is also a school of thought that pre-employment drug screening may be a bad idea. This line of reasoning includes the limited availability of candidates in the workforce but also suggests that the increased legalization of marijuana use in some states is negating the reasons for having applicants take the tests.

     When taken together think about what it means to the retail employer. Store owners are required to rely on the information supplied by a candidate to make hiring decisions. Screening consists of the responses of the candidate to your questions during an interview and perhaps a couple of recommendations from their list of references. How confident are you in the references provided? Do you know if they are going to be honest about the character of the person you are considering for the job? How many of us really put down a reference who we think will not speak well of us? You also bet on the roll the dice whether your new hire is a drug user. Fail to a drug screen and the chances increase for accidents and even theft. Both theft and accidents can be costly in the long term, whether the employee is a seasonal worker or regular hire. Employee accidents can result in workers compensation claims. Accidents involving a customer as a result of an employee’s negligence can result in a lawsuit against your business.

     The question you need to answer is whether it is worth changing your hiring practices to ramp up your seasonal staffing needs? The short answer is no, you should not modify or change tried and true methods of hiring. Those methods help you bring in new help and reduce your exposure to safety and shortage risks. Pre-employment background screenings can be tailored to meet the criteria you want them to assess so you may review what you are screening for and eliminate some of the categories that may not be as important for a part-time worker. For instance, if a driving record check is part of your normal pre-employment screening is that necessary for someone who will work in your stockroom for a few months? You might not really need to validate someone’s education level if you are only hiring them for the season and they do not intend to apply to stay after that.

      Likewise, a credit history, criminal background check, and review of the sex offender registry are the minimum three searches I recommend every store owner require of applicants regardless of the amount of time they will work for you. The credit history should be checked in case your prospective employee is in dire financial trouble. He/she may see this job as a means of extricating themselves from their problem. The criminal history should be checked because it could include everything from assaults to theft. You don’t want someone prone to violence working around other employees or customers and have them lose control. Nor would you want a convicted thief working around merchandise and/or cash. The sex offender registry check speaks for itself. You are responsible for the safety of all of your employees and your customers and the risk of hiring a person on the sex offender registry is too great to consider.

     Seasonal hiring may be a bit more of a challenge when the economy is strong but it is no reason to discard proven methods of shortage reduction. Holidays also tend to be times of increased safety issues. Drug testing and pre-employment screenings are an effective means of maintaining a safe work environment. Don’t lose sight of the fact that there are a lot of people who are looking for a seasonal job simply for a little extra spending cash. There are also young people looking for that first job experience and a paycheck. You may have to find new ways to get the word out about your positions but don’t fret, there is always an honest person looking for a job (or a second one).

     

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