The Advantages of Hiring and Training Good Employees

A study done by the University of California at Berkley found that hiring a new employee costs an approximate $4,000 dollars per employee and in hiring for higher positions-professionals and management level employees-the figure increases to $7,000. If you are a small business, then the figure increases per every new employee you are trying to hire.  If you are a small business that offers other benefits to their employees, the cost increases considerably.  The importance of hiring quality employees, or training the employees you already have, are an economic advantage many businesses cannot pass.  Hiring and training new employees is expensive, why not do it right the first time? Background checks, and recommendations from other employers are not something you can take lightly.  Checked them before you hire, and it would likely paid dividends.

For more about this and other stories, follow the links below.


Loss Prevention Management Must Focus on Quality Recruitment and Retention

Loss prevention management has the power to improve understanding, morale, and workplace inclusion.

Let’s face it—the bottom line to any corporate organization is the profit margin. However, those in executive loss prevention management should always be mindful that quality of service drives the margin. Factors that lead to high-quality service are often the result of well-retained employees. Specifically, all management levels need to be mindful of what policies work, what don’t work, and what looks promising.

Recruitment and Training

Think back to when you first joined your company. What was your initial impression of the first few people you met when you went in for the initial interview? Do you remember their general attitude about the company?

Chances are that your initial impression was positive. Perhaps this is why you stayed. Do you think the same attitudes are being conveyed to new recruits today? If not, you might consider those colleagues who left the company. What was it about their experiences that differed from yours, that made them leave?


The Square Alliance met this morning to discuss ways to combat the increase in shoplifting in the hub of Oxford’s shopping. Business owners had a Q&A with OPD investigator Chris Case about how to prevent shoplifting and deal with those who are caught in the act.

Case provided tips in shoplifting prevention such as a more visible security system, keeping an eye out for suspicious activity and more. Business owners voiced their opinions and discussed certain tricks and trends that they’ve noticed shoplifters using to attempt to steal merchandise. Case mentioned that shoplifters will usually work in pairs rather than alone to attempt to distract workers while they commit the crime.

A heavy importance was placed on figuring out how to deal with shoplifters when they are caught in the act to find the balance of ensuring security but not overstepping the boundaries. Businesses and workers have the ability to recover stolen merchandise and keep the violator in the store until the authorities arrive, as long as they have probable cause. It is also unlawful to lock them in a small space such as a closet or use force.


Wal-Mart has a unique way to cut down on shoplifting

Wal-Mart has taken the law into its own hands. 

No, the company has not started its own jail, and any employee who wears a cape and fights crime must still do so on his own time. Instead, the retail chain has taken a new approach to fighting shoplifting that requires less involvement from the police. The retailer has been using a “restorative justice” program in 1,500 of its stores, according to The Gainesville Sun. That’s a program in which people deemed low-risk, first-time offenders are given the choice of paying to take an anti-shoplifting course rather than facing arrest and prosecution.

The effort is in its early days, but the results have been good so far. The company has seen a 35% reduction in calls to law enforcement nationwide since restorative justice programs were first implemented, Wal-Mart spokesman Ragan Dickens told The Sun in an email.

“No retailer is immune to the challenge of crime. We recognize the importance of this issue at the highest levels of the company, and we are investing in people and technology to support our stores,” he wrote, noting that police are not being cut out of the loop.


 

Fighting Shoplifting Locally

Across the United States, local governments are passing legislature to combat and punish shoplifting and employee theft.  The harsher sentences are supposed to deter the shoplifter while sending the message of severe persecution if caught shoplifting.  Now, small business owners are taking a new initiative.  They are uniting to fight retail theft, and being able to provide information about shoplifters and shoplifting among retailers in the area.In some areas, the increase of shoplifting is hitting businesses hard and according to them “We are fed up.”

For more about this and other topics, follow the links below.


East Coast supermarket chain finds talent in former drug dealers

PHILADELPHIA

When Jeffrey Brown looks to promote employees within his 13-store supermarket chain, he looks for people with hustle, ability, commitment, all that.

There’s another unlikely attribute that has turned out to be a predictor of success at Brown’s ShopRite and Fresh Grocer stores.

Drug dealing.

“What we realized is that a lot of the people we hired were in the drug trade,” said Brown, founder and chief executive of Brown’s Super Stores Inc. “We were surprised that some of the people we hired have fairly good business skills. The drug trade is a business. It’s an illegal business. You are buying. You are selling. You have inventory. You have some of the common problems that any retailer has. A lot of them are accelerating into management.”

That’s the kind of human capital insight that Brown would never have imagined in 2008, when, at the urging of an outspoken customer, he decided to make it his company’s mission to hire people coming out of prison.


Research Findings from Employee Theft Articles

Peer-reviewed employee theft articles can stimulate discussion and reassessment of policies among LP professionals.

As many of you know, I have been researching employee theft, occupational crime, employee dishonesty, and workplace deviance for more than 30 years. I peruse scholarly journals and academic publications regularly for relevant research studies that can help us all better understand this phenomenon. This column features a couple of employee theft articles that may shed some light on this continuing problem. I have included the full citations so you can find these publications online or in your local library to read and share with your staff. If you do not have direct access to a major research library, try using Google Scholar.

“Workplace Theft: An Analysis of Student-Employee Offenders and Job Attributes”

The first of the two employee theft articles is authored by Elizabeth Ehrhardt Mustaine (University of Central Florida) and Richard Tewksbury (University of Louisville) and published in the American Journal of Criminal Justice 27:1 (pages 111 – 127, 2002). This employee theft study surveyed a large population of college students attending a number of major universities. Since existing research suggests that many dishonest employees are younger, part-time, untenured, and dissatisfied, these two researchers concluded that college students would make an ideal sample of employees to survey about their occupational criminal behavior.


Physical Security Inspections Can Help Impact Sales While Keeping Customers And Employees Safe

Daylight savings time is over and for most of us in the U.S. (yes, there are a few exceptions) we have moved our clocks and groaned at the loss of a precious hour of sleep. We have to adjust and get used to the change and eventually we do. For our personal lives there isn’t a lot of impact, once we are used to it we do benefit from the additional daylight and get to enjoy more outdoor activity. The time change is useful as a reminder for changing batteries in smoke detectors. You may even use it as a point when you will start planning your summer vacations. For business owners daylight savings time can be a reminder that it is time to conduct a store physical security review. Time changes may not impact us much individually but for retailers there is an impact for the building, employees and your customers.

     How does daylight impact your business? With more daylight you may want to take a look at your parking lot lighting. Are the lights on the exterior of the building set to timers? If they are it would be appropriate to set them to the new hours of dusk. Lights turning on too early wastes energy and drives up electric expenses. Having lights come on when it is already dark makes a parking lot feel unsafe and will keep shoppers away from your store. In an article from Buildings.com titled “4 Parking Security Essentials” by Jennie Morton, 11/30/2012, the author states, “Give your lighting a hard look stresses Geary Robinson, parking and transportation services director for Indiana University – Purdue University Indianapolis (IUPUI) and a member of IPI. Dark shadows that can conceal aggressors, reduced visibility for pedestrians and vehicles, and inadequate color rendering all chip away at safety.” The article continues, “Not sure if your parking area has a lighting problem? Look at the behavior of visitors. If people feel compelled to use their headlights in your garage or cars are grouped in your lot closest to light poles, these activities indicate that users may be uncomfortable with the level of darkness.” (Emphasis mine). If lighting is not adequate or if lamps are out, this is the perfect time to get them replaced. If you lease your property a call to your property management company is in order to get lights repaired or replaced.

     Since we are talking about a thorough physical security review of the building I would recommend testing fire exit push bars. Are they alarming properly? Do the doors open easily? I once had a set of fire doors that would not close properly after testing the push bar and we could not reset the alarm. What if the opposite had been the problem? What would have happened had the doors not opened properly in an emergency situation? You cannot assume that systems will work simply because you want it to be so. While you are at the fire doors, check the fire exit lights, make sure they are lit. This can be difficult with some lights. While they may seem dim to you, some are designed this way. Ask the fire department to come to the store and test the lights to ensure they meet code requirements. By auditing and testing you identify potential issues and get them repaired so you can depend on them in the event you need them. You could also avoid hefty fines for safety violations in case of an inspection by the Fire Marshall.

      Include testing of your burglary and fire alarm systems at this time. Your alarm system company should be able to walk you through a test of the burglary alarm system. Testing door alarm points and any motion sensors your store may have. You may also need to do a break glass test to be sure your system will pick up front door and window glass breaks. Fire alarm tests and sprinkler riser tests can be conducted through a third party vendor. You don’t need to be the expert in how to conduct the tests, just be sure to get them done.

     Many people associate spring with a fresh start. Give your business a fresh start annually, use this time of the year as a reminder to check your safety measures. Keep your customers and employees safe while protecting your business from unnecessary fines or lawsuits.


Tuning Up Your CCTV To Maximize Safety And Security

When do closed circuit television malfunctions occur? I’m sure you can guess, it is always at the point when you need it most. I can’t recall the number of instances when I had a cash shortage I needed to look for and when I attempted to pull video through the DVR the video was already dropped or the camera wasn’t functioning. I remember having to look for an image of a suspect in a shoplifting incident and the picture was too grainy to be of any use due to a dirty camera lens or dome. One slightly embarrassing situation that stands out in my mind involved robberies that were taking place behind our store. I had developed a great working relationship with our local police department and they knew the quality of our camera system. Investigators came to me seeking assistance with outdoor camera footage to try to identify the criminals conducting the robberies. I pulled up video of the date and time in question and much to my chagrin the camera had a great shot of the ground directly underneath it. A power surge had impacted the programming of the pan/tilt/zoom (PTZ) camera and placed it in a default position. I had not noticed the problem in a timely fashion and could not recall how long it was before I did catch the issue. The good news was I was able to re-program the camera and eventually we did provide footage of an incident a little later that led to an arrest.

     It is important to do a spring cleaning of your Loss Prevention tools, and especially a tune up of your closed circuit television (cctv) equipment. As a Loss Prevention Manager for a big box retailer, each spring we would have what we referred to as a bounce back checklist. The checklist covered a number of housekeeping items, including cleaning and checking CCTV components. Doing so helped to ensure we were getting maximum video retention, quality camera pictures, clear public view monitor images and we would identify equipment needing repairs.

     I used to train my team to look at CCTV equipment from the eye of a shoplifter. If there is a public view monitor it is supposed to be a deterrent to crime. When the bad guys see their picture on a monitor the idea is that they will be less inclined to do what they intended whether it is shoplifting, stealing purses or robbing the business. I would emphasize that a filthy monitor or poor quality picture indicated to the bad guys that the store didn’t take Loss Prevention seriously and diminished the deterrence value.

     CCTV equipment maintenance is not just for stores with a Loss Prevention Department. Many stores do not have a security department but there is equipment that is a precaution against crime. Often a camera system with a digital video recorder, computer and or multiplexer is housed in a small office recording activity. It can be easy to forget about it if there is not someone assigned to check on it daily. Sometimes it is neglected until a robbery takes place or money is missing from a register and then a manager goes to review footage and finds the system is not functioning. Using a spring checklist helps managers ensure equipment will be functioning when it is needed.

      So what should be included in a cctv tune-up checklist?

  • Dust digital video recorders, keyboards, computers and multiplexers with canned air and good quality dusters
  • Check all connections and ensure nothing has come loose and no wires are frayed
  • If equipment is maintained in a small office, ensure the room is properly cooled
  • Review each camera and picture, is it positioned to see what you need it to see?
  • Clean every camera lens
  • Wipe down all camera domes (even dummy domes)
  • Clean Public View Monitors. If a monitor has a burned picture, replace it. Look at it during different hours of the day is there a time when too much glare hits it? If so, you may want to try repositioning it.
  • Check your video retention. If you aren’t getting at least 30 days follow up with your vendor to see about clearing space or optimizing recording. You may be able to set recording zones or sensors that will only record when movement in an area happens.

No one wants to think about a robbery, employee theft or shoplifting taking place in their store but it is something you have to be prepared for. Take care of your cctv by tuning it up so that IF the time comes when you need it you will have the video necessary to help police in their investigation to put the criminals away.


Spring Cleaning Should Include A Review Of Evidence Held For Shoplifting And Employee Theft Cases

When I was a Loss Prevention Manager we would catch a shoplifter or a dishonest employee and recover merchandise. Depending on the type of case we would sometimes hold the evidence for a few days until the court hearing other times it could be much longer. If a shoplifter refused to plead guilty or requested a jury trial cases could be held up for months if not longer. I had several cases that went on for more than a year. Felony shoplifting cases and juvenile cases in our jurisdiction often meant lengthy wait periods depending on caseloads in the court. I also recall at least one shoplifting case in which the lawyer for the defendant requested extensions three separate times hoping that I would not appear for the hearing and the case would be dropped. No dice, I showed up for each hearing and finally the lawyer entered a guilty plea. The problem with the lengthy cases was that we would have to hold the evidence until the cases were settled. In some situations the police department held the recovered merchandise, such as when they stopped the suspect after the suspect fled the store. When merchandise has to be held for long periods it is possible for it to sit in evidence and be forgotten about. For stores that are too small to have security or Loss Prevention Departments management may be storing that evidence and no one is thinking about following up on cases with their police department or court.

     Spring is the perfect time to look through cases and see if there is merchandise that can be returned to inventory. Before you just go in and start looking through evidence closets or lockers that you may have in your store take some things into consideration. Just as police have chains of custody, a store should have a similar program in place. No one should be able to open a security cabinet and start digging through it. A proper evidence locker will have a listing of evidence that is associated with a case number, date and suspect(s) name. This enables the store to track the progress of a case. It also gives reference information so that a call to the Clerk of Court can help their employees find the status of a case. When the locker is opened, there should be a signature sheet with a date and time entry showing when it was accessed. There should also be an evidence release form in the event police have to take custody of property (be aware that they will have their own chain of custody form for you to sign too).

     Why is it so important to go through and review for evidence that can be cleaned out? From an inventory standpoint the product could be losing value. I did have merchandise sit in my evidence locker and some SKU’s went clearance as the merchandise had to be held while the case was in limbo. In a few instances merchandise completely dropped from the books and I had to take financial sheets and account for the products. Occasionally police would come by with merchandise from cases I had forgotten about and let me know that they were cleaning out their evidence lockers and a case had been dismissed or adjudicated without any follow up with our store. Again, this was infrequent as most cases were disposed of with me present or a call from the Clerk of Court letting me know the defendant had entered a guilty plea. Our store was large enough that we could absorb some of these lost markdowns or the items dropped from the system without making a major impact on our stock shortage. For smaller stores this could be problematic. Every dollar and piece of merchandise should be accounted for whenever possible at inventory time. The lower the annual sales the more impact each lost or uncounted piece of merchandise has on overall shortage.

     What is the solution to potential losses because merchandise is in evidence? Use spring as the time to review what you may have in your evidence locker from shoplifting and employee theft cases. If there are cases that have been sitting for a month or more, place a call to the court that is responsible for the case and ask about the status. If it has been closed on their end you should be able to release the goods back to the store. If it is still awaiting trial or disposition continue holding it in evidence. One final piece of advice, some jurisdictions will permit photos of evidence to suffice for court. Contact your local police department or court to find out their rules and guidelines.


Can Technology End Shoplifting?

Shoplifting prevention has for many years been done with the help of technology.  From CCTV cameras that offer the loss prevention team clear pictures of the perpetrator, to radio frequency tags (RF tags) that are placed on high value items in the store and set alarm systems off if carried outside without paying. Now, stores can use facial recognition technology to help alleviate some of the shoplifting burden the loss prevention team faces every single day.

But, regardless of the technology a store uses, it is imperative for the owner or management of the store to inform their employees of the policies and procedures the store has in place regarding shoplifting.  Death, lawsuits and bodily harm has occurred to countless of employees because they do not know, or do not adhere to the policies the store has in place regarding on how to approach a suspected shoplifter.  Safety is paramount to the well being of employees, customers and the suspected shoplifter.

To read more about other topics about shoplifting, follow the links below.


Why hasn’t security technology put an end to shoplifting?

As the UK crime rate falls, there is one crime that is on the rise. Recent figures show that shoplifting has consistently grown by an annual 6% against a wider backdrop of reduced crime. This statistic is surprising considering the vast amount of time, money and effort that goes into developing anti-shoplifting technology. So why isn’t it working?

How does anti-shoplifting technology work?

The vast majority of retail stores are equipped with several high tech security measures. CCTV cameras are the most common. According to the College of Policing, CCTV is more effective as a method of gaining evidence to catch and convict a criminal than as a deterrent.

Many security camera providers provide monitoring services to ensure footage is captured and analysed as efficiently as possible. However, surveillance systems require careful planning; Banham Group, security experts with more than 90 years’ industry experience, advise that CCTV installation must include guidance, particularly on data protection laws and system legalities.


Loss Prevention Software and Data Analysis

The latest loss prevention software technology will help LP pros aggregate and analyze data into actionable information.

Data analysis is all about answering questions. To properly develop the questions, you must first identify your enterprise’s opportunities to increase profitability. Second, you need to identify the specific data needed to answer these questions. Finally, you must determine the tools and loss prevention software resources you can use to turn that data into actionable information to resolve the opportunities.

Develop the Questions. Increase in profitability is always the goal of any enterprise. Opportunities reside in breaking up organized retail crime (ORC) rings that are having a heavy impact on shrinkage and item availability across your business. Improving safety protocols to reduce internal and external injury claims would avoid payouts. Upgrading loss prevention software to improve workforce efficiency and productivity would result in reductions to labor cost centers. How do you resolve these opportunities? The specific questions can be limitless, but the answers are almost always contained in your data.


Manager loses job after video shows him choking woman

The manager of a west Charlotte beauty supply store has been terminated after cellphone video surfaced showing him kicking and choking a woman.

Sung Ho Lim was the manager of Missha Beauty. He said this all started when the woman in the video, who has not been identified, was confronted about stealing.

In the video, you can hear the woman tell Lim, “Check my bag. I don’t have anything.”

You then see the two shove each other, at which point Lim said, “You hit me.”

Moments later, Lim kicks the woman, knocks her to the ground and puts her in a choke hold. WBTV showed Lim the video, and he confirmed it is him, but he also said the part when she stole an item is not captured by this video.

“This is my fault,” Lim said. “I have to take the whole video and give it to the police.” Lim’s niece told WBTV that her uncle offered to quit his job, in the hope of taking a positive step to help the store.

He also agreed to meet the woman and apologize, but at last check, an initial meeting was delayed.

Employees told WBTV store surveillance video has been given to the Charlotte-Mecklenburg Police Department.


How to Tackle Employee Theft and Shoplifting

The big retail stores and thousands of convenience stores across the country try to find solutions to tackle shoplifting and employee theft.  The retail industry losses account to $42 billion every year, and it doesn’t seem to be stopping anytime soon.

Security  measures implemented and adopted by many retailers have given these stores some small wins, but overall the losses are staggering.  Inventory adopted by these small stores that are done in real time, and are working in conjunction with software that displays results to the management of these stores instantly,  are invaluable to the operation and profitability of the stores.  As a deterrent to shoplifting and employee theft, these operative measures are of tremendous help to the management as well.

CCTV cameras that provided a grainy image of the customers or perpetrators are a thing of the past.  Now, CCTV cameras provide a clear image of the individual that is easier for police officers and management of these stores to get a clear view of these people. Facial recognition software now provides solutions to these stores that were not available to them before.  And although trained personnel has to work in conjunction with these technological advances, the results have greatly improved over the years.

For more about this and other topics, follow the links below.


To stop a thief: Shoplifting is a daily battle for retailers

On any given day, more than $35 million worth of merchandise is stolen from retail stores across the country by shoplifters – amateurs and professionals alike – who steal clothing, jewelry, electronics and a host of other items, including food.

Some sneak quickly and quietly with the merchandise, others make bold getaway attempts.

In Tupelo, the retail and financial hub of Northeast Mississippi, the Tupelo Police Department gets hundreds of reports each year.

In 2014, TPD took 483 reports related to shoplifting, according to TPD Public Information Officer Chuck McDougald. Last year, that number fell to 260. So far this year, the department has taken 162 calls.

“Higher shopping volume days correspond to more shoplifting calls,” he said. “Those include weekends and holidays.”

As for the timing of when shoplifters are busiest, apparently they’re not early risers.

“Afternoons see an increase over mornings,” McDougald said. “Generally, it looks like the busier a store is, the more opportunities there are for someone to steal.”

For retailers like Reed’s, which has four department stores in the region, the key to cutting down on shoplifters is to make sure customer service is prioritized.


Are You Doing Enough to Secure Your Stores?

Theft and robbery continue to rise, but new technology and planning can deter.

NATIONAL REPORT — Whether it’s violent crime, robberies, shoplifting or employee theft, convenience stores have been dealing with store security issues for years. New technology is allowing operators to amp up prevention and react faster to incidents, but in many cases — in c-stores and the entire retail industry — the situation continues to worsen.

“I’ve been involved in the convenience store industry for 40-plus years and the risk of loss has not changed. The most worrisome is robbery, and as c-stores evolved into 24 hours, the violence level increased,” Chris McGoey of McGoey Security Consulting told Convenience Store News.

Robberies are up all-around, specifically in convenience stores, as the latest released FBI statistics show robbery up 16.8 percent in c-stores/gas stations from 2014 to 2015. Rosemary Erickson, researcher, forensic sociologist and president of Athena Research Corp., based in Sioux Falls, S.D., says this is the largest increase she can remember in all the years she has been studying crime. Erickson has helped NACS, the Association for Convenience & Fuel Retailing, develop many of its security resources.


 

Preventing Shoplifting

The National Association for Shoplifting Prevention agrees with the retail industry about the effect shoplifting has in all of us. Communities across the country lose the taxes they would otherwise collect from the items being stolen from stores to help social and outreach programs that could benefit those communities in the long run. Shoplifting is a crime that costs the retail industry $45 billion a year, and we as consumers have to pay higher prices to offset the cost shoplifting has in these businesses.

What we, as consumers and retail employees must not forget is that Profiling a customer upon entering a store is not legal, and we must not lose sight of that. Macy’s and CVS stores have had legal suits because of  profiling that have cost them millions of dollars. Assuming a poorly dressed person entering your store is a shoplifter, is assuming too much.  The NASP states that there is no profile of a typical shoplifter.  Men and women shoplift as equally.  Poorly or well dressed customers have the capability to shoplift from the store.

A recent article about ways to prevent shoplifting advises to monitor children and poorly dressed people, because they write“Teenagers are the most likely to steal from you. People that are poorly dressed are statistically more likely to be shoplifters as well”. According to The NASP 25% of shoplifters are kids and 75% are adults. Unfortunately they do not post statistics about how well or poorly those people are dressed.  If years of research from organizations like The NASP tells you that there is no profile of a typical shoplifter, it is distressing to find articles that tells you to target poorly dressed people with no data to back it up. If kids or teenagers are your main target, then you will be missing out the 75% of adults that actively shoplift.

Preventing shoplifting is not about targeting people of color, how well they dressed, or if they are teenagers or not.  People  from all walks of life steal, and some of them are repeated offenders with an addiction problem or other types of issues.  Preventive measures that allows you to monitor ALL people including employees, is the only smart solution to take for any retail store.  Prejudices or preconceived notions of what a typical shoplifter is can be detrimental to stopping shoplifting and employee theft.

Recent research suggest greeting customers as they enter the store is one of the best methods to prevent shoplifting.  Employees should also wander the aisles, but that does not mean targeting “poorly dressed” people. A well lit store, or a store that has shelves that are well organized can deter shoplifters from entering the store.  Shoplifting is an inevitable part of doing retail business, get to know your store, and offer preventive shoplifting measures without targeting specific people.


THE IMPOSSIBLE ACT OF “SELLING YOUR WAY OUT OF SHRINK”

I recently read over an article opining the phrase “sales cures shrink”. While the author touched on both sides of the coin, I found it interesting that in today’s retail climate, anyone would think that you can simply sell your way out of losses. Let’s cut to the chase here; we’re not bringing in 20% increases over last year, hell we’re lucky to come in flat to last year. Online giants like Amazon are eating up market share like never before and if brick and mortar don’t do something fast, sales will continue to slump.

Let’s break this down a bit further. Let’s say your shrink last year was 2% to your sales of $1,000,000. That’s a loss of $20,000 for the year, or about $57 a day. Taking that shrink number and dividing that into your loss per day gets you right at $2680. That means you have to sell an additional $2,680 on top of that $57 loss just to get to the break-even point. Understand this, you CANNOT stay in business if all you’re doing is breaking even. You just can’t. You need to turn a profit!

Being a realist here, there is no way that you’re ever going to sell your way out of shrink. EVER. It is a flawed philosophy and if you ever hear someone utter this crummy phrase, understand that whomever that person is, they have no idea what they are talking about. Unless you have some miracle business model and you’re bringing in money hand over fist, then “selling your way out of shrink” just isn’t an option. It’s a start…

Offsetting shrink takes a multi-faceted approach. Just as you can’t sell your way out of shrink, you can’t very well keep everything under lock and key, and it’s impractical to have the security devices on every single sku. If you’re trying to increase sales, you may be inclined to have more displays of merchandise. Copious amounts of data show that a customer is more likely to make a high dollar purchase if they have a chance to touch and feel the item. (Think sunglasses, hunting scopes, sports equipment, etc.) To sell it, they have to be able to touch it. For you not to lose it, you need to secure it in some manner. Once you find the balance of sales vs. LP procedure, you’ll find the winning formula for shrink reduction.

Proper security measures will only go so far to stop external losses. Internal theft accounts for an even bigger percentage of losses inside your store. Knowing who to hire, and whom you are hiring are both vital spokes in the retail wheel of shrink reduction. You need to go a step further and encourage a culture of honesty, integrity and ethics in your store. Employees should feel invested in your business, as that emotional attachment will likely deter an employee from stealing.

As with any problem, there are always a multitude of solutions to bring about positive change. Get away from a soloed approach to shrink and look at all the ways your losses may be tackled. Just as you would be foolish to believe that locking up all of your merchandise would stop theft, you’re of equal foolishness if you believe that sales are the cure all for shrink; and I personally, pity the fool.


TAKE AN OFFENSIVE APPROACH TO EMPLOYEE THEFT

I’ve been doing employee theft investigations for years now. Sometimes, they’re a blast. Often, they frustrate me. Not because the person is a thief, but because the loss could be so avoidable if managers would take the time and play offense. Sure, we can run reports and watch video, but all that’s doing is keeping us on the D-Line. You have to play hard and not be afraid to call an audible when needed.

Kick things off in the interview

Are you a good interviewer, or do you just think you are? I’ve sat around and listened to dozens of managers interview potential candidates. Some stick to the HR script, others go off on their own tangents, others talk non-stop for 20 minutes and rarer, are the mangers that take time to get to know their candidate. Just because someone can show up for an interview doesn’t mean they should get the job.

When asking questions, do so in a way that allows you to understand the candidates work ethic. Don’t ask if they enjoy hard work (most will say YES)! But instead ask for examples in their life where they had to work hard at a job or task. Instead of asking if they think it’s wrong for an employee to steal, ask instead at what point do they feel it’s the job’s fault that an employee steals. Bottom line, get the candidate talking. If you’re doing more than listening, take a step back and ask if you really know the candidate before offering a job.

Return with a background check

Trust, but verify. In today’s world, there really is no excuse to hire a criminal. A background check is simple, easy and provide a host of information that lets you make a more informed hiring decision. People lie. Get over and stay ahead of it.

First down with a strong training program

A good employee has to have a strong foundation. Training an employee shows that you are willing to invest into that person. That goes a long way for most people. If someone took the time to invest time, company resources and money into you, chances are, it becomes morally harder for you to steal from that person. Just look at the opposite. Say you hire a new person for your stock team. The only time they have manager engagement is during the interview and they are thrown to the wolves to learn the job on their own. They won’t care about the job and more importantly, they won’t care about you. That emotional tie is severed and an unhappy employee is more likely to steal from you.

Second down with a culture of integrity

Rules and policies are in place for a specific reason. We simply cannot live and work without structure. It’s important to always address policy violations from all of your team members. Don’t let the little things slip; they can easily snowball out of control. For example, let’s imagine Manager Dave is talking near the front lanes with Little Wendy. Little Wendy grabs a cold drink from the cooler and fails to pay. Little Wendy knows that Manager Dave saw her do this, but Manager Dave doesn’t “sweat the small stuff.” Next week, Little Wendy steals a shirt; she got away with drink, right? Week after that, she steals a designer hand bag. Before you know it, Little Wendy is robbing you blind.

Be open with your team about your expectations. Every employee should know that above all else, honesty and integrity is rewarded. Transversely, failing to meet those standards guarantees the quickest ticket to the unemployment line.

Third down with basic control policies

Implement some very basic controls to prevent employee theft. This is as simple as requiring all employees to check out at one designated register. It could also mean that no personal items/belongings such as purses, jackets, backpacks or lunch kits be kept on the sales floor/office areas and that they must be kept in the break room area. It could also be implementing a package check of all employees prior to the end of their shift. For cashiers, you could have policies that limit the dollar amount of return transactions before needing a 2nd level approval. Think of the ways an employee can steal from you and then implement a control to stay one step ahead.

Touchdown with weeding our poor performers

Even the best interviews end up sideways. I can recall at least two from my past. One young man in particular still stands out, even 10 years later. He was the most enthusiastic and well-spoken person I had interviewed in my career at that point. He was going to be a shining star, I just knew it. 3 weeks into the job and I realized he was a complete flake. Attendance was horrible, performance was below standards, couldn’t multi-task. Disregarded the uniform policy; you name it, he did it. At first, I let it slide due to his sales ability and how attentive he was with customers. That, I learned, hurt the morale of the rest of the team. When you have someone that’s not meeting your expectations, cut them. It’s very easy for a person who can’t follow policies to quickly slip into stealing. I’ve seen it happen time and time again.