Retail Background Checks: The Ultimate 2020 Guide
The retail industry has a higher turnover rate than many other sectors. While the average turnover rate sits at 15%, the retail industry’s turnover rate is about 60%. Fortunately, employers have options to address the issue. Companies who want to be proactive about reducing their turnover rate can focus on improving the quality of their retail background checks.
Today, comprehensive background checks allow employers to select the best applicants to represent their brands, which helps build a healthy, long-term workforce.
Proper retail background checks are easier said than done, though. To help you navigate and streamline the process for your company, we’ve developed this comprehensive guide.
Before we discuss the importance of background checks, let’s talk about one of the biggest threats facing the modern retail environment: retail theft.
According to results from the 2019 National Retail Security Survey (NRSS), 25.4% of retailers state that reducing the rate of internal theft has become “much more of a priority” in recent years. The survey also reports that inventory shrink rates have remained steady – hovering at about 1.4% – since fiscal year 2014.
In an attempt to respond to these threats, retailers are allocating more resources to risk management, specifically where loss prevention is concerned. Today, 15.9% of retailers report that improving their store’s interviewing and hiring skills is critical to making those loss prevention efforts successful. When you consider that the average dollar loss per dishonest employee is $1,264.10, the focus on better hiring, vetting, and interviewing in the retail environment makes sense.
While there’s no way to stop retail theft altogether, investing in more robust background checking programs is one way to prevent it from dealing a critical financial blow to your operation.
What Does a Standard Retail Background Check Consist of?
A quality retail background check should include the following:
Identity verification services allow your company to ensure that an applicant is who they say they are. This is a critical part of proper retail screening and will help keep your store and customers safe and secure.
County Criminal Records Check
County criminal records checks are a powerful type of background check. Since most felony and misdemeanor cases are filed in county courts, county criminal record searches have the potential to expose court records, convictions, and more.
National Criminal Records Check
A national criminal records check is a very wide search into an applicant’s background. These checks search a database containing millions of records from many sources and jurisdictions, counties, departments of corrections, administrative offices of the court, and offender registries to identify possible records. When potential records are found, we search the proper source and return only updated, correct and useful information.
Past Employment Verification
Even if the applicant has a clean criminal history, how can you be sure they have the skills to complete the job? Prior employment verification allows you to be sure that the applicant has the skills and ability to perform the duties of the job, and that their resume or application is accurate and complete.
Drug testing for retail candidates is essential. Since retail spaces require employees to engage with customers and promote the brand, employers must ensure the people overseeing their store’s shopping experience are drug-free.
Form I-9 is used to verify the employment authorization and identity of individuals seeking employment in the U.S. Before hiring an applicant, U.S. employers must ensure the applicant has completed Form I-9 properly.
How Long Does a Background Check Take for a Retail Job?
The time it takes to complete a retail background check varies. It depends on factors like the extent of the search and whether your company is completing the check in-house or hiring a third-party company.
If you want a faster turnaround time for your retail background checks, partner with a professional company like iprospectcheck.
Your Source for Reliable Retail Background Checks
Retail is a value-driven industry, and the success of your business depends on the quality of your employees. While you can’t predict the potential pitfalls associated with every applicant you interview, conducting extensive retail background checks will improve your loss prevention and risk management efforts immediately. It will also allow you to decrease turnover, find the right people for your store, and ensure the success of your company for years to come.
Not all background-checking companies are created equal. Here at iprospectcheck, we specialize in comprehensive and compliant employment background screenings for the retail industry. Contact us today to learn more or request a free quote.
DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.