BBB issues a holiday warning to local businesses of the increased risks of shoplifting and employee theft during the holiday season. The information is pertinent for businesses -- especially retail outlets -- across the country.
As the holiday shopping season nears, the risks of shoplifting and employee theft increase with the hiring of more temporary employees and the influx of holiday shoppers. Statistically, 70% of all lost revenue, or "inventory shrinkage" is the result of employee theft. A lack of adequate background checks on temporary, or seasonal, workers exacerbates this problem and leaves stores vulnerable to employee theft.
BBB offers the following tips for businesses to combat holiday shoplifting and employee theft:
- Recognize that the problem of shoplifting is severe and dedicate the necessary staff and financial resources to address this problem appropriately
- Perform a separate "theft-frequency" study for each store under your ownership, taking into consideration the different types of thefts that occur and develop a strategy specific to each store
- Establish a clear and forceful shoplifting policy in each store (explicitly stating that all shoplifters will be prosecuted) and prominently display this policy throughout your store
- Follow through with prosecutions of shoplifters and employees and publicize your efforts to combat shoplifting
- Be careful with the selection and training of all employees, thoroughly screening all potential hires, and adopt a tough, "zero-tolerance" policy to discourage employee theft.