One of the toughest things for a small business owner to do is spend money, especially when there is nothing tangible they can hold in their hands as a result of the expenditure. That is exactly the challenge I had as a LP consultant when broaching the subject of employee background checks. Small business owners very rarely take into account the pre-employment screening process when they start the search for employees.
There are many things to discuss as a consultant with a new business owner regarding loss prevention but the number one concern is ensuring the business secures a reputable background check company that employs background check experts with a wide array of experience. It is not merely enough to conduct criminal background checks you must also conduct employee background checks as well. Trying to pull an owner from the belief that a mere review of a job application and an interview is enough of a pre-employment screening to the full understanding of what background checks can achieve is a monumental task.
A perfect example was the owner of a small clothing retailer with five locations located within a largely populated city. This owner had two speeds fast and stop. Trying to get him to sit down for a consultation was tough enough even though he was the one who contacted me for a LP consultation overview of his business. The main problem he had was shrink and he could not determine the source or sources of the bad inventory results.
I took about a month to review all aspects of the five locations including interviewing all of the employees and management. What I found was staggering. Essentially there were five locations running five different businesses doing whatever each store manager felt was right for their own store. This included the pre-employment screening process. The hiring ranged from a job application and a five minute interview to a store manager who at least conducted two interviews and called for reference checks. There were no criminal background checks, no education checks and no employee background checks. In fact no one including the owner of the business ever entertained the idea of hiring a background check company to conduct background checks for the company.
I reported my results to the owner which included my thoughts on how the losses where occurring as well as the potential solutions to the shrink problem. I told him that his losses were mostly internal and that an in depth investigation would be required to pinpoint the problem employees. There were some minor administrative issues that were easily rectified but the staffing problem was not going to be so easily put to rest.
I explained to the owner that before he went and started replacing employees he needed to retain a company that employed true background check experts that would help him choose the right staff. I explained to the owner the cost of hiring and training an employee and that seemed to get his attention since he would now be losing several employees, the cost of hiring and training them and now have to hire additional employees and invest that training cost once again. We narrowed the choices down to one reputable background check company. This company offered criminal background checks from local to federal levels, educational background checks as well as employee background checks with very reasonable pricing. I was also impressed with the transparency of the company to reveal the backgrounds of their background check experts. This openness put the owner at ease to take the necessary step to put a proper pre employment screening process in place.
It took the owner about six months to sort out his employee theft issues as well as at the same time successfully implementing the new hiring process. He called it a labor of love that in the end kept him from losing his business. He is now one of the biggest proponents for small business owners to implement good hiring processes that screen potential employees before they are allowed to take position of employment.
To purchase Pre-Employment Screening Services or for more information on background check experts, background checks, criminal background checks, employee background checks or pre-employment screening contact us at the background check company or call 1.770.426.0547
