The Power of Background Checks in the Retail Industry

Power of Background Checks in the Retail Industry

The retail sector has a greater turnover rate than many other industries. While the average turnover rate is 15 percent, the retail industry has a turnover of over 60 percent.

Fortunately, employers have alternatives for dealing with the problem. Companies that wish to be proactive in lowering their turnover rate should concentrate on increasing the quality of their retail background checks. But in reality, do retail stores do background checks?

Today, extensive retail background checks enable businesses to pick the best candidates to represent their brands and build a strong, long-term workforce. 

However, background checks for retail jobs are easier said than done. This article will help you navigate and streamline the process of background checks for your organization.

Latest statistics of retail theft

Before we go into the necessity of background checks for retail jobs, let’s look at one of the most common dangers to modern retail: retail theft. 

According to the 2020 National Retail Security Survey (NRSS), 20.3 percent of retailers believe that preventing internal theft has become a much higher priority in recent years.

Retailers allocate more resources to address this concern. Today, 18.8 percent of dealers say that improved interviewing and recruitment skills in their stores are crucial to successfully preventing loss. So when you find out that the average loss per dishonest employee is $1,139.32, it makes sense to concentrate on better recruitment, screening, and retail interviews. 

Although retail theft cannot be eliminated, investing in effective background control measures is one method of preventing your business from suffering a significant financial hit.

Reasons for background checks for retail jobs

Retail companies need to recruit outstanding staff. The first line of protection of retail employers against negligent hiring claims, violence at work, theft, and fraud is to implement pre-employment background inspections. In addition, background checks assist businesses in keeping the staff and customers safe.

There are numerous reasons why shops use their candidates to perform pre-employment screening.

Enhanced customer service for your business

A majority of the retail staff have interaction with consumers regularly. If clients have a better purchasing experience, they prefer to come back and recommend your business to others. Recruiting people with high customer service skills and appropriate employment experience will help secure your business. 

Background checks for retail jobs may guarantee that your staff has the skill and experience necessary to provide exceptional service to customers.

Reduction of retail theft and fraud incidents

Retail robbery is another real concern. The National Retail Federation (NRF) says it suffered an estimated $61.7 billion loss from fraud and theft in 2019. 

While many merchants claim loss due to fraud, lifting, or other difficulties caused by returns, many of these losses can be attributed to fraud. According to the NRF, 58 percent of merchants reported losses due to internal theft and fraud.

In addition, retail workers frequently handle sensitive data, including personal data and credit card details, in addition to the concern that they transport items without paying for them.  As a retail employer, you are obliged to secure your customers’ sensitive data against fraud and robbery. 

If an employee exploits your customer’s credit card information, a negligent hiring claim might harm your company. 

By performing retail job background checks, you can protect your profit margins and consumers. For example, these checks might detect a candidate whose background information shows incidents of fraud or robbery.

Avoid workplace conflicts

The retail sector works closely with many consumers and staff. You may lower the danger of recruiting someone with a history of theft, aggressive conduct, or drug addiction by partnering with a reliable job background checking firm and safeguarding your organization against any liabilities.

Higher job retention growth

Many retail workers are struggling with low retention rates and significant staff turnover. When the turnover rate of your firm is high, you face higher costs due to continuous training sessions and inducting new people. 

Employment checks can reveal if an applicant prefers to stay employed or changes employers often. In addition to making rational recruitment selections, you may check the information candidates write on their applications. 

A career history checking of a candidate might show whether he has regularly moved from work to work or stayed for long periods with different companies.

What do retail background checks consist of?

The authenticity of background checks for retail jobs is considered by adhering to the following:

How long does a background check take?

The time taken for a retail background check varies on a case-to-case basis. The effectiveness and time of background checks for retail jobs depend on your business domain, background check agency, and depth of search.


Any business must have a background check for retail jobs, ensuring holistic benefits such as a good working environment, higher customer trust, and enhanced reliability.

It is highly advisable to conduct such checks with authentic service providers. Make your business trustworthy through a reliable background check for retail jobs.

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