Retail Market: Employee Theft

In a typical year, there are 6-7 cases of employee theft in the retail marketplace.

Industry estimates indicate that employee theft makes up 40-50% of all loss in the average retail store.

Retail stores are vulnerable to the practice, but have devised a method of fighting back. Top retailers in India have organized to develop a so-called "blacklist" to combat the loss of about $125 million dollars per year.

The list will include the names of people who exhibited unethical conduct, bad behavior, and who left without notice. It also includes thieves, though a typical background check should find that information as well.

In fact, the retailers should be aware that providing such information on an open list such as the proposed could violate privacy rights of the candidate's, though privacy rights in India may be much different than those in the United States where the candidate's information is protected until he or she authorizes its access.

The move is good in measure, but it is generally better to stick to investigative background checks and thorough past employment verification. These procedures standardize your hiring practices where as referring to a blacklist could leave you vulnerable to lawsuits.

For more information about background checks and strengthening your company's hiring practices go here.