Can You Hear Me Now? Active Listening is Important To Great Customer Service

How often does it happen? You are in front of your television watching your favorite college football team playing a game and your spouse starts talking to you about their day or what you need from the grocery store. Then suddenly the conversation takes a nasty turn and you are asked for input about the conversation you weren’t really engaged in. The textbook reply, “Yes Dear” or “Sounds good Honey” are the first line of defense but your spouse is suspicious of your response and asks, “What did I say?”  Oops, you’re caught, you weren’t listening and you really have no idea what was said. The same thing can happen in retail but with a much different outcome and one that can cost you money. With your spouse you may be in the doghouse and it can be uncomfortable for a bit but usually things have a way of working out in the end. For a retailer,  it may end up with an  exasperated customer who won’t shop at your store any more.

Actively listening is critical for ALL retail associates. It requires paying attention to what your customer is saying and sometimes keeping an ear out for what is not being said. It is a skill that often has to be taught because we do not always give our full attention to what others say to us as I gave in my example of above. How does one really actively listen? By asking clarifying questions and repeating back what the customer has said to you. Here are some examples:

  • A customer is returning a shirt. A simple situation right? Do the refund and give the customer their money back and everything should be good. Not necessarily. What was the reason for the return? Was the merchandise defective? Did it not fit the way the customer thought it would? Did someone fail to give them proper assistance when they were looking for the shirt in the first place? By asking the right questions you may turn a bad experience into better one. If the merchandise was defective, what was the defect? Is it possible to prevent a bad experience for others by pulling that shirt brand and style from the floor and requesting a credit from the vendor? What appears to be a simple problem may have underlying issues that you would not know if you aren’t listening and asking customers questions about their returns.  Doing so let’s the customer know you do care about them.
  • Perhaps you are selling jewelry to a customer. Showing your shopper merchandise is fine but learning about the customer and what they need the jewelry for can build an invaluable rapport with your clients. Is the jewelry for a special occasion? What style and color of outfit is being worn? How about inquiring if the client is allergic to any metals? You may need to look for hypoallergenic jewelry. It is possible by asking the right questions you might be able to accessorize the sale or better yet sell the entire outfit.

A key part of active listening is the inquiry process and asking the probing questions that lead to a clear picture of what a patron wants.

In addition to the probing questions another essential part of active listening is repeating what the customer has said to you. Sometimes when we are listening to someone we hear one thing but what the customer meant was something totally different. Here is a good example from a social media post I saw the other day:

  • I want to eat Grandma
  • I want to eat, Grandma

Both have the same words but two TOTALLY different meanings. When we repeat back what we have heard in the form of a question we ensure we truly understand what our customer is asking for. We can ask our customer, “So, if I understand you correctly you want to eat your grandmother, would you like that with or without ketchup?” Our customer can then make it clear they do not want to eat grandma at all, that wouldn’t be very nice. The patron can rephrase the question and give more details on what they want. Giving our full attention helps us give our clients exactly what they want and need as we make recommendations based on what they have told us.

Focus on customer service by listening to your customers and make them the center of your attention. They will return the favor by coming back to shop time after time and spreading the word to their friends.    


Get on the fast track for better profits, drive for improved shortage results

We’ve all been there, we are on our way to work and the next thing you know you come to a standstill. Cars backed up as far as you can see and no one is going anywhere. The clock is ticking away and you begin to worry knowing you are going to be late getting to the office. You look for a side street to try to get out of the mess then, someone with a little bit of guts and a four-wheel drive truck pulls onto the shoulder of the road and speeds by everyone to get to their destination. Everyone gets to where they are going but some people are determined not to let obstacles get in their way and they take the fast track to get there. They went the same route they just overcame the obstacles that would get in their way.

Retail can be like that too. A new store may start off doing pretty well and may even see growth the first few years. Over time the store does nothing new, profits stagnate or start to decline a little but it is just blamed on a slowdown in the economy.

The media and industry trade journals attribute the decline in sales in brick and mortar stores to online competition and the ease of shopping at home. I liken this to getting stuck in traffic and not being able to see more than a hundred yards ahead of where you are. You guess there is an accident or you assume there is a traffic light out and it is certainly not your fault you are going to be late for work.  Does that HAVE to keep you from getting through to your destination? I argue that it does not. The innovator takes a risk, gets on the shoulder of the road and blazes on by everyone else in the traffic jam. Is there risk? Yes, and notice I did not say the innovator plows through all the other cars leaving mass destruction in his wake. The risk is to the driver and his vehicle because he could run over an unseen hazard in the dirt or run into a ditch. The other vehicles are safe as they idle and slowly start to run out of gas. The risk taker measures the risk and determines that the payoff is worth the risk he/she is taking.

So how does all of this relate to shortage and profitability? Some store owners have chosen to operate their businesses without the use of any type of retail anti-theft devices. The store may conduct inventory and losses show up but the owner decides that the losses are related to operational issues rather than theft or fraud. Another inventory cycles and shrink goes up a bit but there is little thought given to the Impact of shoplifting. Over the years the shrink gradually creeps up just a little at a time and sales remain basically where they have been. That shortage is eating into the profit line of that retailer but no one takes notice. Eventually theft impacts the store to the point where it is too late to regain control and the owner is forced out of business. He’s just sitting in the backed up lane of traffic waiting to run out of gas and get pushed off to the side of the road. Had proactive steps been taken the problem could have been avoided. Had the owner chosen to install an electronic article surveillance towers at the doors and use tags on merchandise theft would have been prevented before things spun out of control.

Improving shortage means improved profits for store owners. The use of retail anti-theft devices and looking for fresh, new ideas to bring in additional customers can be the combination that keeps a store from falling by the wayside. You have the green light to get in the fast lane and pass up your competition.


     

     

Employee Retention Is Made Easier When You Conduct Speedy, Accurate Background Checks

Turnover for many businesses can be a real headache. You take the time to post job ads, review job applications, set up interviews and then conduct the interviews. Your new hire starts and within a couple of weeks they quit. It happens far too many times and it is a pain. Why did the person quit? Did they have a propensity for job hopping already and you missed it on the job application? Did they start stealing from you and got enough money or merchandise and quit before you caught on to their schemes? Perhaps it was a young employee on their first job and they wanted more weekends and night shifts off so they could “hang out” with their friends. All of these are reasons for high turnover in retail stores especially. Lose too many people at once and it can cripple your business, stretch the staff you currently have and it may potentially lead to more employees quitting.

On the other end of the spectrum there are the businesses that are very careful, almost to the extreme. They go through the same hiring procedures, posting the ad, contacting applicants and conducting interviews but they add an additional step. They conduct a background check before making a job offer. Sounds good right? Making sure you aren’t hiring someone who will steal from you or threaten others in the workplace. Here’s the catch, hire the wrong background check company and you may be losing great employees because pre-employment screening is taking too long to conduct. Thoroughly vetting a prospective new hire is fine, but if that candidate has to wait too long for results they may decide to go somewhere else.

I know of one retailer that conducts pre-employment screenings but in some of their stores they have a problem with retention rates. In one instance the management team was reduced to the store manager and an assistant. The assistant left the company and only the manager and a skeleton crew were running the building. The store manager was trying to get new managers on board as soon as he could. He was working 7 days a week and personnel from other stores were going up and helping to fill in as managers on duty so the store manager could get a break.

Reportedly the store manager had a department manager candidate to hire and attempted to get the background check expedited to give him some help. The request was denied and it took several additional weeks for the positions to begin to be filled. I heard through a third party that the manager was close to quitting due to the staffing problems at this store and the failure to get critical jobs filled. Several weeks later the person the manager wanted to fast track was cleared and hired for the store. While this was an extreme situation, consider how close the manager came to leaving the company.

What about the chance the district level manager or higher took with the candidate. The position was not an extremely high paying job and there are plenty of other opportunities with similar or even better pay. It would have been easy for the candidate to just find another place to work with the length of time the background check was taking.

Not having a pre-employment screening on candidates is foolish. You are gambling with your business and profitability if you bring on the wrong person for your staff. Hire the wrong Background Check Company that doesn’t recognize the value of timeliness when conducting your checks for you and you risk the loss of potentially very strong candidates. It is important to find a company that understands the challenges retail owners and managers face every day. From taking steps to grow profits, combating theft and fraud, to retaining the best people to work in their stores it can be overwhelming. Give Loss Prevention Systems a call to discuss background check options with people who understand the challenges of the retail industry. Proper hiring and operating profitable stores go hand in hand.


Can Your Shelving Prevent Shoplifting? Oh Yeah!!!

Retail shelving along with store design has a huge impact on shoplifting losses. Typically a shoplifter likes and needs privacy even if only for a moment. So why not keep that in mind when designing or remodeling your store. Your shelving and isles can work for you by simply considering several factors.

Shelving height can be critical. It may be tempting to have shelves go all the way to the ceiling. However, this creates cover for shoplifters. They feel more secure when they cannot be seen. Shelving that allows your staff to see over and keep track of customers make a shoplifter uncomfortable.

Do not create dead sports. Shoplifters will pick up your merchandise and head for “dark areas” of your store. Areas when they can remove packaging, pricing… and have time to conceal it.

Speaking of lighting. Make sure that you align lighting with your isles. Not only will that encourage sales but again, adequate lighting will not allow shoplifters to get comfortable.

You should also put some thought into your end cap displays. Move small or high value merchandise to end caps that are easily seen by your staff. Likewise place merchandise that is larger and lesser value on end caps that face away from staff.

When designing your stores’ layout consider the foot traffic of staff, customers and shoplifters. We want retail staff and even back office personnel to routinely visit all areas of the store. It may be tempting to have a single direct path but that could leave a number of areas rarely visited by staff throughout the day. That is a gold mine for shoplifters. They watch staff traffic and will naturally migrate to areas less traveled.

Likewise you want your good customers to assist you with shoplifting prevention. They can do this in two ways. If your store is laid out in such a way that keeps legitimate customers spread out and in all areas of the store not just focused in one or two places, then they help you with removing privacy from the shoplifter.

Another technique to shut off shoplifters is to make your legitimate customers into your store security, without the customer even knowing it. You can use a PA system or even radios that can be heard by the public (not on a headset) for this.

To do this make a “ghost call”. If you suspect that shoplifters are in the store then on the PA system say “security to section 3…,” then watch what happens! Legitimate customers will not care, they are not in the mindset to steal. They are focused on what they are looking at. At most they may look up and around, then simply go back to what they were doing. Shoplifters on the other hand will react differently. By calling security to an “area” that is not marked or corresponds to anything such as isle number… the shoplifter does not know what is going on. And that legitimate customer that then happens to come into the isle or area they are in now becomes an undercover store detective regardless of age, gender…. You can even assign ghost calls to staff as a responsibility to be made randomly every hour or so.

All of this because of a little forethought on your part and shelving design help.

Bill Bregar is a 30+ year loss prevention expert. Bill was the Director of Loss Prevention for several major retailers and is now the President of Loss Prevention Systems, Inc. LPSI specializes in Checkpoint Systems anti-shoplifting equipment. He has personally apprehended many shoplifters and over 2300 employees stealing from their employers. Bill can be reached at: [email protected] or at 770-426-0547


Didn’t Your Momma Teach You Better? Inside The Mind Of A Shoplifter

Growing up did you ever do something dumb and your mom or your dad would ask you, “What were you thinking?” Having lived in south for the past 32 years I have learned of the local colloquialism when someone does something stupid, “Didn’t your momma teach you better?” Unfortunately, as a young boy I did a lot of dumb things making me wonder if my brain developed a lot later in life than most people. For example, I had a propensity for walking behind batters warming up to go to the plate for my father’s teen baseball teams. I ended up with more than one fat lip from my stupidity…obviously not learning the lesson the first time. I had a fascination with electrical outlets and wires and old rotary dial telephones…I won’t go into details but no they didn’t work when the wires were pushed into the outlet, I was not injured but I had one very busy guardian angel.  What goes on inside of the mind of a child? I have NO idea and my wife and I have raised THREE of them! The same can be said for shoplifters I have no idea what goes on inside their heads. I can speculate on it, having caught hundreds of them but I am not convinced they have developed their brains yet.

Where I live is a tourist area. In order to get to the beaches and hotels you have to cross over one of any number of bridges. We have a saying around here that tourists leave their brains on the other side of the waterway before crossing the bridge…because they do DUMB things. It may well be that shoplifters leave their brains at home before venturing out. Here are some of examples of what I mean:

  • You have a criminal history for shoplifting and are currently on probation. You walk into a store and decide it is a good idea to steal some clothing. Then, when you are caught you ask if you can be let go and you won’t come in again. “Have you lost your mind?”
  • You shoplift and get chased and have the audacity to stop and put your hand in your purse and suggest you have a gun. Police draw down on you and put you on the ground to arrest you. Oh that’s right you also had a prior arrest for involuntary manslaughter on your record as well as multiple shoplifting violations. “What were you thinking?”
  • You make a decision to shoplift, get away with it and come back later that night and steal again. You are stopped and run but the Loss Prevention Officer grabs your purse as you flee. Yes, you get away but wait a minute, what did you have in your purse? Oh, a butcher knife and your prison I.D. card since you happen to be on parole. “Didn’t your momma teach you better?”
  • You have a station wagon loaded with television sets you’ve been stealing from hotels. What do you do since you obviously have plenty of time on your hands? You park out front of a store in the fire lane by the front doors, go into the store, steal a video player and walk out the door. Not only do you set off the Checkpoint EAS tower, Loss Prevention has been watching you. You are approached by L.P. and run. It just so happens that about 8 police officers have been outside following you from the hotels. Why it only makes sense you would run from them too, and try to jump in your station wagon, start it and nearly run into a police car. You are surprised by the fact you are physically dragged out of your car and face-planted in the pavement? Don’t forget to pick up your brain from the other side of the bridge when you do get released from jail.
  • You shoplift from a store, Loss Prevention chases you and you pull out pepper spray. You decide to try to use it but the L.P. person is smart enough to keep their distance. A police officer arrives on scene, is about to arrest you and in a moment of shear and total stupidity, you elect to pepper spray HIM! That’s a special kind of STUPID!

What’s in the mind of a shoplifter? I don’t know. The question always elicits the usual responses of, “They can’t help it,” “They didn’t understand what they were doing,,” , etc. I say someone didn’t ask them, “Didn’t your momma teach you better?” then give them a good swat on the posterior when they were younger. And yes, all of those things really happened.


How Loss Prevention Managers Can Help Store Managers Improve Store Sales

Loss Prevention Officers and Managers catch shoplifters and dishonest employees. That is a common perception and in some stores it may be a true picture of what Loss Prevention departments do, with the additional caveat that they may have uniformed people who conduct receipt checks. If this is all that the department does it can be hard to sell store managers on the value of having them on staff if the budget for them comes directly from the store. It is even more difficult for small, independent retailers to justify hiring a Loss Prevention Officer although if the store is in a high crime area they may contract a security guard. There was a time when there was an “us versus them” mindset between store managers and Loss Prevention teams. Over time some larger companies have focused their Loss Prevention teams more on operational issues. For example, I worked for a company that had Loss Prevention conduct food product out of date audits. Their position was that this was a safety issue so it fell to the Loss Prevention team. I had no problem doing the audits, but as I looked at the amount of out of date items I was finding I had to question what the freight team was doing when they were stocking. Who was auditing their work because there were a lot of FIFO (First In First Out) issues I was identifying that were causing out of date problems.

     The solution is for a partnership where Loss Prevention can help store managers and owners improve sales and operations and store management provides administrative support for L.P. What is it that Loss Prevention can offer a store in addition to improved profitability by stopping employee theft or preventing shoplifting? As a Loss Prevention Manager I assisted the store managers in conducting prospective employee interviews. I was already interviewing my own applicants when I had job openings so helping the store fill their positions was not a big deal. L.P. can audit out of stock spaces on shelves. Certainly the focus of the L.P. Officer is on empty shelf space due to theft but if it is determined that merchandise is not being pushed properly by a stocking team then that information can be shared with management. The impact of not properly stocking merchandise results in missed sales and negatively affects profits.

     Loss Prevention departments can also support stores by applying electronic article surveillance anti-theft devices to merchandise. I have personally spent significant amounts of my time placing Checkpoint tags on CD’s, DVD’s, and electronics merchandise. I have also placed security tags on clothes, thwarting would-be shoplifters and keeping shortage down. You may be thinking that this should be a Loss Prevention job anyway but that isn’t necessarily the case. There are stores where tagging is left to a freight unload team or even delegated taggers. It saves the store money in these situations when L.P. jumps in and assists in tagging allowing the hours saved to be put to use somewhere else.

     Is it important to maintain some delineation between L.P. and stores? I believe there should be some dividing line and it may not always be clear. I have seen some managers give direction to L.P. Officers which began to interfere with their primary responsibility of catching shoplifters. I have also seen department managers start entering the Loss Prevention office when no one from L.P. was present and move cameras to watch their cashiers or employees to see if they were being productive. This potentially causes issues with ongoing investigations when cameras are not where they are expected to be. A partnership between L.P. and stores requires a mutual respect for areas of responsibility.  Likewise I have seen instances of L.P. Managers telling store employees were not doing a job properly rather than acting in partnership and mentioning an observation to the department manager.

     In a partnership, store managers may provide a store employee as a witness for L.P. when a shoplifting suspect is in the office. They may also provide a witness for a L.P. Manager when they are going to conduct a dishonest employee interview. Managers may also offer to purchase additional security equipment such as cameras when L.P. teams have been strong partners and have helped to keep merchandise on the floor and prevented shoplifting.

     There are many ways that stores and L.P. can be partners in making a store profitable. All it takes is thinking outside the box and building a relationship based on respect. Strong partners make a winning combination.


     

     

Setting Goals In L.P. Vs. Setting Quotas, What Are The Benefits And Costs?

Police hear it all the time when issuing tickets, “Need to make your quota for the month?” Usually it is a false question with a false premise that has been perpetuated over time. While there may be some police departments that set quotas they are the exception rather than the rule. Loss Prevention departments go through similar problems. Some people think that Loss Prevention staffs are out to rack up numbers any way they can get them. Most L.P. professionals are simply trying to catch shoplifters who are stealing and they want to apprehend dishonest employees to stop theft, prevent shrinkage and it can serve as a notice to other employees that theft won’t be tolerated. For some L.P. personnel there is a perceived pressure to “get more shoplifters” and in other cases it is real. For the retailer that is not able to pay for a Loss Prevention Staff, their concern is simply to drive the bad guys somewhere else and get rid of a crooked employee before they cause too much damage. Sometimes this is done using electronic article surveillance equipment from a company like Checkpoint Systems. They don’t feel the same pressure to “apprehend” but there is a sense of urgency in minimizing theft opportunities (how to do that becomes another matter).

     There are stores with a Loss Prevention hierarchy that sets “expectations” or “goals” for the apprehension of dishonest employees or shoplifters. The message that seems to get down to the store level is that there is always theft in a building, all the time. I have seen this lead to a requirement that stores have a minimum number of open internal investigations at all times. No pressure there, right? Wrong, the words may not be spoken but the message that is heard (correctly or incorrectly) is that cases will be successfully closed. And that implies that not doing so will impact an annual review. For most people, integrity will ensure they do not try to manipulate a case or make a shaky apprehension say for a single incident of grazing or snacking but do such cases exist? I suspected such activity was taking place at other stores but could not prove it.

     The same type of pressure can be felt by Loss Prevention Officers. They get on a cold streak and can’t seem to make an apprehension and the L.P. Manager starts to get questioned about low shoplifter numbers. No one says a specific number have to be caught but “guidelines” are established that say on average, x number of shoplifters should be apprehended for every x number of hours an Officer works. The Associate then begins taking more risks, focusing attention on high theft areas that carry more risk for making stops like in cosmetics and costume jewelry. The theft is taking place there but following all of the apprehension steps for such small pieces of merchandise can be very difficult. A suspect puts down an item without the Officer seeing it and a bad stop is made. Yes, it can happen with almost any piece of merchandise but those types of merchandise are extremely risky to make stops on. But, harder still is that the same L.P. Associate while told that apprehensions should be higher is also told to avoid risky stops on items like cosmetics or jewelry unless it is stolen along with other merchandise. This sends a mixed message to the Associate.

     None of this is to say that goals should not be set. Working without a goal is like running a race with no clear finish line. Goals can be set based on historical data or on the season of the year. Allowing an L.P. Associate to be part of the goal setting is also important. It is up to the Manager to make sure the goal is reasonable. A goal set too high can frustrate an Associate if they don’t achieve it. Setting reasonable goals also gives a boost to one’s self-esteem if they achieve it. A good Associate will also want to beat their last achievement but not at the risk of a bad stop.

     For L.P. Managers, setting internal apprehension goals is fine, but the bigger picture should be on achieving improved shortage results. Identifying and focusing on the core issues for the store, whether they are operational or theft related. An L.P. Manager engaged with the store team will be able to educate and train while picking up on suspicious employees who may need to be investigated. Don’t assume that low shortage results means no theft, it may mean L.P. knows where and when to focus its’ time and energy.


“I Can Out Sell My Theft & Inventory Shortage”….. Yeah Right

If you believe that you can outsell your cash or inventory losses due to theft, you probably won’t be in business for long. Or if you do survive, you are no way living up to the margins you deserve. In my 35+ years of loss prevention particularly helping medium to small retailers, I have heard this more times than I can believe.

Consider this, as an example, if you have a net 2% profit over all. In other words after taxes, rent, payroll, merchandise cost, insurance…. you clear 2 cents on the dollar. Then a $100 dollar loss will cost you $5000 (100÷.02). Yes, FIVE THOUSAND DOLLARS. You will have to purchase, ship, receive, stock and sell another $5K just to BREAK EVEN on a $100 loss. I doubt even a drug dealer would make money that way.

Don’t delude yourself. 

Now on the flip side. I do not advocate that you turn your store into a six sided steel box to protect yourself from shoplifting, employee theft, vendor fraud and paperwork errors. Exactly the opposite. I want you to have an open, friendly and inviting environment for your legitimate customers and employees. What you can’t be is naive to your shrinkage and loss problems.

First, realize that you must do inventories at a minimum quarterly, more often if things are seriously out of whack. Cycle counts for individual SKU’s that seem to be loss problems are also important. Do not wait until the end of a quarter or heaven forbid end of year to find out you have a problem. You have to go on offense not defense. Theft and shrink are business problems. Nothing more, nothing less. We can easily show you how to do this. You do not have a retail LP issue that has not been seen and dealt with before.

In regard to employee theft what are your hiring practices. As an LP professional that has personally conducted over 2300 investigations and interrogations of employees involved in theft, I started looking up the drain pipe to see where it is all coming from.  It starts with the application and employment interviewing.

For shoplifting; Do you and your staff know really know how shoplifters act. Probably not. Shoplifters are easy to spot. You just need to know what to look for. Stopping them is incredibly easy. Again, you just need to apply the correct tools and training.

But all of this is for nothing, if your retail attitude is not straight.

Another problem is business apathy. The “oh I am so busy I do not have time”. You don’t have time to keep your profits on your bottom line and not the thief’s? Then why are you doing all this? Making a living for you, your family and employees is all what it is about.

I have had people steal from me. It doesn’t feel good and it makes me angry.  I work really hard and try to work smart to provide my family’s income and the income for my employees. But the thought of simply covering it up in my own mind is unthinkable. It should be for you also.

Go on the attack. Fix your loss problems before they happen. Remember, we can help you with that. We are simply an email or phone call away.

Have a super retail day!


Look For Red Flags When Reviewing Applications And Interviewing Job Candidates

How many of you have done IT? You know the IT I’m talking about. You looked at an application, interviewed the candidate, had a bit of an unsettled feeling about him or her but hired them anyway. IT may be a few days, a few weeks or a few months later but IT becomes a reality, buyer’s remorse. You hired someone who turns out to be a dud. It may be they are calling out of work on a regular basis or perhaps they aren’t following directions on tasks you are assigning them. It may be that you think they are stealing money or merchandise from you. Whatever the problem you just wish you hadn’t hired this person. It is frustrating to make those types of employment decisions, but don’t feel like your small retail store is all alone because you have to make these hiring choices yourself. It even happens to big companies that have Human Resources departments dedicated to trying to hire and retain the best employees.

There are things the smaller store owners and managers can do to try to improve their chances of hiring good applicants for their stores:

  • First and foremost, if you aren’t doing background checks consider hiring Loss Prevention Systems Inc. (LPSi) to do them for you. Their team can dig into a candidate’s past to verify they aren’t hiding important information from you. They can do criminal background checks, verify employment, validate driving records, and so much more. By having a background check company conduct pre-employment screenings on your candidates you also protect your business from potential liability lawsuits if your employee were to harm someone while acting as a representative of your business.
  • When you are reviewing applications look for red flags on the application itself. This could be a significant gap between jobs. While a month up to three months may be explained as just a difficult time finding employment, more than that may be a cause for concern but not necessarily a deal breaker on its own.
  • Look for brief periods of employment or a pattern of going from one job to another, sometimes known as job hopping. While some of this may be expected from a teenager or a college student who may have to find summer work between spring and Fall Semesters it should not be the case for someone out of school for a year or so. Job hopping could indicate someone who has problems at work either with the job itself or the manager. It could also indicate someone who has been stealing and quit before being caught.
  • If your application asks if a former employer may be contacted, look out when the applicant indicates “no” and/or leaves the former supervisor’s name off of the application. There could be a reason they don’t want you to contact that employer.
  • When conducting interviews look for the way the applicant dresses. Regardless of how casual the atmosphere of a business may be it should still be expected that an applicant will come to the interview in at least business casual attire. If an applicant does not care enough to make an attempt to impress the boss in an interview it is highly unlikely they will attempt to impress the boss in their job performance.
  • Look for eye contact from the applicant during an interview. Some people do not know how to interview, have been out of the workforce for a while or may just be nervous so some glancing around is to be expected. On the other hand, there should be some eye contact and if it seems the person is avoiding it, you should consider this a red flag.
  • Cell phones! While they seem to be a necessity of life, they do have an off button. If your candidate fails to mute a phone and it goes off during an interview let it raise a flag. If the applicant asks if you mind if they take the call, I suggest you end the interview at that point. Very few life and death matters take place during an interview. It is more a matter of poor planning. They didn’t take time to mute their phone, turn it off or tell someone where they would be at the time of the interview. If you aren’t more important than that phone during an interview you won’t be more important when they start working for you.

When you hire someone you invest a lot of time and money in them. When you have to get rid of them you start the whole process over and invest more money. Don’t throw good money after bad, recognize red flags and hire right the first time.


The Costs Associated With Poor Hiring Decisions

We make decisions each and every day that have consequences. We set our alarm clocks and when they go off we choose to do the right thing and get up so we have time to prepare for work properly, showering, grabbing a bite to eat, sipping a cup of coffee or two and saying good-byes to our family. It is possible we may choose to do the wrong thing, hit the snooze button and get that 5 extra minutes of sleep but there is a cost associated with it. That five minutes easily turns to fifteen minutes, showers go by the wayside, we grab the first thing we can find in the closet (or hamper), our socks wind up not matching and if we are fortunate we grab a cup of coffee in a travel cup and hope it doesn’t spill on us as we jog/stumble to the car.

Employers can make poor decisions too when they don’t take the time to hire the right person. Some of you may be familiar with a cost/benefit analysis. You probably use it when you are deciding how to run your store(s). Do you allow your inventory shortage numbers to sit at 1.5% or do you invest in a Checkpoint Security System, spending money now but reaping the benefits later in significantly reduced shrink due to theft?

Do you keep investing all of your money into one store hoping to find the formula that will increase your foot traffic or do you take the risk and open a second store in a new market and try to attract a new batch of loyal customers? Is the cost of the investment going to benefit you over time with increased sales? The same thing holds true for your hiring decisions.

When you hire the right person, all kinds of good things can happen. You may bring on a future department supervisor or assistant store manager. You might be adding that person who seems to make everyone around them smile co-workers and customers alike. Sometimes your hiring decisions result in a home run and that new employee is just a self-motivated go-getter who learns quickly and doesn’t wait around to be told what to do next. The right person offers new ideas and suggestions to help a business get better and wants to see the company succeed. Those people exist it’s just a matter of finding them by not rushing to fill positions and hiring the first person you interview.

But did you know there are hidden costs to making a bad hiring decision? Suppose the applicant doesn’t work out for you for one reason or another and you have to end his or her employment, now you have to go through the hiring process again. What does it cost to advertise the job? How much time will you spend reviewing applications, making phone calls to check on references and setting up interviews? Let’s not forget the time it takes to conduct the interviews. Once you make a hiring decision, guess what? Now you have to train your employee, investing more time and pay for the time training is taking place. Oh, and did I mention that there is a chance that the person you fired will file for unemployment? You may have grounds for termination but even if you do, you need to spend time at the unemployment office fighting the claim. The larger retailers often have a Human Resources Manager to take care of this, unfortunately smaller business owners don’t have this person and so the owner or store manager has to go to the hearing.

What are some of the other costs associated with making a bad hiring decision? A poor performer can have a negative impact on the morale of other team members. Who wants to pick up the slack for someone else? You may have hired a thief and then your cost is amplified in the shortage they are causing in stolen money or merchandise. You may find you pay for a poor hiring choice in terms of spending time on disciplinary action and all the steps you have to take to get rid of the employee.

What’s the answer for a small retailer? We can help you with pre-employment screening as a background check company who can thoroughly investigate a prospective employee doing the legwork of checking out who the applicant really is. Next, take your time in reviewing applications. It’s better to be short-handed for a while and get a quality candidate than just filling a spot out of desperation. Building a strong, reliable team may feel like it takes longer but it will pay for itself in the long run.