Background checks in the retail sector

For retail companies, there is a unique dilemma that comes into play when hiring employees. Most employees do have direct access to the products on the shelves, customers, and money. And this puts them at the risk of employee theft, thus background checks in retail become even more prevalent. 

While employee theft is not restricted to the retail industry, it is more prevalent in the retail sector. 

Challenges faced

For retail companies, the inventory, cash flow, and operations management take a lot of time and energy. And with just one bad employee, there can be a mess of stolen goods, lost customers, tarnished image, and lost time.

It is critical to developing an effective, efficient, and compliant screening solution based on your unique needs. 

With the changing trends in shopping, more digital information is passed one. Shoppers use credit and debit cards. They share information about payments via UPI. A leak at this stage could be a dent in your business and ruin decades of reputation. Hence, hiring honest, diligent people is imperative. 

How can running a background check help the retail sector?

By running background checks, one can avoid hiring someone who may threaten the retail workplace. Or, for that matter, even be a liability to the employer. While more than 94% of people in the retail sector prefer conducting background screening, many don’t.

Here are some of the risks that can avert if all retail organisations carry out background checks:

• Influencing minors with alcohol or drugs
• Conspiracy to compromise on standardised assessments  
• Sexual assault
• Harassment
• Fraud
• Drug ownership/sales
• Kidnapping

With advancements in technology, background checks are easier to carry out, and one can avoid making well-informed hiring decisions within the retail sector. 

All retail establishments should ensure that the background verification check includes:

• Criminal records
• Drug abuse
• Motor vehicle records
• Past employment
• Professional and educational degree 
• Address verification 

At IDfy, the team assists institutions in performing such checks efficiently and cost-effectively.

What’s required to run a background check?

Ideally, the employers can do a basic pre-employment background check. For this, they require:

• Candidate’s full name
• Date of birth
• Identity documents like Aadhar card
• Current or past address

Do all employees require background checks?

Ideally yes! While the fundamental background-check components might suffice for a basic level job, it is critical to incorporate additional searches into a package based on your company’s specific needs. 

For example, if you are looking for someone to transport goods from one store to the other? Then you need someone who has a valid driving license and a motor vehicle report for that specific job function. 

Then for financial positions, you would want to do an educational check or get a full credit report. For the administrative roles, a basic background check from professionals is suggested may suffice. The administration is a high-profile job and makes your business vulnerable to financial risks and loss of reputation.

Protecting what matters most

Keep in mind that as an employer in the retail sector, you have a legal obligation to protect your business, staff, and customers from any foreseeable act of an employee. Background checks are a critical step to performing due diligence and conducting background checks on new hires.

Customer woes

Along with stocks, there’s a lot of cash flow that comes into play in the retail sector. Besides this, the security of the customer is another aspect. For example, one needs quality security personnel in the changing room area.

Employee theft can also be related to discount abuse, refund abuse and even credit card abuse. Besides this, the theft of merchandise and misusing data make the retail sector a very high-risk one.

How IDfy does background checks?

With IDfy’s intense background screening, you can prevent the risks of negligent hiring or retention situations because of poor hiring practices. By conducting background checks, one can hire experienced, trustworthy employees and mitigate many risks such as theft and violence.

The process is relatively quick, and customisation is done based on the retail business and type of hire. While it is disappointing not to hire a person from a group of applicants, it’s critical to saving your company’s reputation.

IDfy conducts background checks and screening components important to the retail job responsibilities, qualifications, or level of involvement in your store or establishment.