Archive for the ‘employment background services’ Category

Employee Theft on the Rise for 2010 Sale Season – How Businesses are Fighting Back

Thursday, February 25th, 2010

The end of 2009 is near but, unfortunately for retailers across America, this does not mean the end of employee-related criminal activity. In fact, experts, including Best Buy’s Director of Asset Protection, Tim Fisher, believe that “organized retail crime is a reality” and the worst is yet to come. With the start of 2010 sales just around the corner, this means that top retailers across the country need to protect their revenue and products from attacks both externally and internally.

Large retail outlets such as Target, Wal-Mart, Sam’s Club, Best Bay and Big Y Foods have all felt the crunch of employee theft in the past. Employee theft accounts for ten times the value of street crimes losses in the United States and retailers are often the hardest hit. In fact, the Department of Justice reports that nearly one third of all employees will commit some degree of employee theft during their working time. Furthermore, 75% of those who have stolen or committed a white collar crime will do so again. Of these drastic numbers, only one in 28 employees will be apprehended for employee theft, according to a study done by Jack L. Hayes International.

Large companies, retail and otherwise, take extreme precautions against shoplifting and burglary with locked display cases, bullet proof glass, alarm cords, concave mirrors, security videos and professional guards. But what are they doing to protect their business from theft that occurs from within these closed doors?

Indications of Petty Theft and White Collar Crimes

Minor employee theft includes a wide variety of activity, from stealing old fruit from the back of the store to ‘forgetting’ to scan an item through the grocery till. All of these petty crimes will add up for business owners. The US Chamber of Commerce reports that employee theft will cost businesses over $50 billion annually in losses. Furthermore, the Association of Certified Fraud Examiners reports that the average organization will lose nearly $10 per day, per employee due to employee theft. Often this loss will be passed on to the customers in increased prices and fees. In larger corporations white collar criminal behavior including embezzlement, bribery and insider trading can set companies back hundreds of thousands of dollars every time.

Dr. Richard Hollinger, a professor of criminology at the University of Florida, reports that employee theft acts like “a big faucet that drips day in and day out.” Large companies are often the easiest targets because there are simply too many employees and too many other important issues to deal with on a daily basis, especially during the busy sales season. Boxing Day Sales and January Sales mean more and more people will flock to the larger chain stores to stock up on discounted 2009 items. However, employee theft will continue throughout the year.

Protecting your Business

One of the main ways business owners are protecting their businesses from the inside is through video monitoring. Although video cameras will keep an eye on employees, they also run the risk of causing information overload. Grocery stores and large retail chains will monitor their employees at the checkout and in the back rooms; however, according to Malay Kundu, a security expert and entrepreneur, “less than 1 percent of video ever gets looked at by anyone.” There is simply not enough time to analyze video input day in and day out. Many companies are also investing in security software to catch insider criminals. But is it enough?

Your browser may not support display of this image. Your browser may not support display of this image. Your browser may not support display of this image. Your browser may not support display of this image. Of course, employee theft does not just hit the big retail outlets, even though during the busy shopping seasons they are often more at risk. Employee theft and white collar criminal activities, such as fraud, embezzlement and bribery can take place in all industries from small corner stores to large financial institutions. The banking industry is the hardest hit with $1 billion losses annually due to white collar criminal activity. However, the truth of the matter is, no company, no matter how big or small, is completely safe from employee theft.

The reason is simple – most business owners do not know every single little detail about their employees’ histories. During the hiring process, most business owners will conduct a quick interview discussing employment history, goals, education and reasons for wanting to work, followed by a reference check and then make a decision about hiring a potential employee. The entire process is quick but is it effective? When looking at the rate of white collar activities across the United States, it would appear the answer is ‘no.’

Solutions for 2010 – Employment Background Checks

Many large corporations and small companies are now focusing on a triple attack when it comes to the hiring process – the interview and the reference check, followed by an employment background check. An employment background check is a way for employers to access a person’s criminal record, credit report and social security identification to ensure that he or she is clean. Although conducting an employment background check and discovering that a potential employer is clean as a whistle will not guarantee that he will be the perfect fit for the position, it does add a level of security in knowing that he has not been charged with theft, embezzlement or other crimes that could jeopardize the future of a company.

The biggest problem with employee related crimes is that they usually come as such a shock to the company. No business owner wants to believe that his most trusted employee could be capable of theft. Employment background checks cannot offer 100% security that a company will be protected from employee related criminal behavior but it can drastically reduce this chance. And, with the bad after taste of the recession of 2009 still fresh in our mouths, can any business owner really take this risk for 2010?

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Five Factors to Consider when Choosing Your Next Employee

Wednesday, January 20th, 2010

Finding ambitious, experienced and educated employees these days is a lot easier said than done. Furthermore, just because an employee appears perfect on paper does not necessarily
mean he will be the perfect fit for the position. That is why it is important to tackle the task of hiring employees with a five-factor game plan that includes your own personal research as well as professional employee screening services.   

  1. The Resume

 

Reading through a resume and cover letter is the first step in the hiring process. Most employers will make sure the applicant has the proper education and work experience. An excellent resume will be eloquent, error-free and will paint an accurate professional image of the person it represents. Once you have gone through the resumes and categorized them into “yes” and “no” piles, it’s time to uncover the truth behind those words.

  1. A Social Security Verification Check

 

In addition to a resume, a social security verification check can provide you with the assurance that your employee has the experience you are looking for. A social security verification check will tell you the basis details of a potential employee, including name, address and previous jobs held according to his tax records. What this means is you can compare what is written on his resume to what is actually true. You may discover that those five years your potential employee said he worked as a bank manager were actually five years spent on the cash register at McDonalds. According to a recent study, 30% of applications contain false material. If your potential employee is lying about his education/experience in the industry,
then what else is he prepared to lie about? Employee screening services will provide you with this information before you make a big mistake and hire someone who is under qualified and dishonest. 

  1. The Interview

The interview process is often the most time consuming, most tedious, and most important factor in hiring the right employee. After all, this is the time where you actually meet your potential employee face to face and uncover the truth about his personality. Most employees will be somewhat nervous during the interview process but you should still be able to assess his character and his personality during the interview. Is he shy or outgoing? Is he rude or polite? Is he dressed appropriately? Is he prepared? Does he possess the people skills required for the position? All of these small factors can help you decide the big picture – who your next employee will be.  

  1. The References

 

During the interview process, it is important to ask for a list of references from your applicant. These references are often people he has worked with in the past, people who know him well and people who will give him a positive recommendation. It is a good idea to also contact the applicant’s previous workplace and speak to the managers, regardless of whether these names are included as references. The reason is because you will find out the truth about an applicant’s work ethic through an old boss or manager. You will also be able to uncover if the applicant left on poor terms and why. If the problem is related to something serious such as employee theft or sexual harassment, you might want to think twice about letting him
on the payroll.  

  1. The Criminal Background Check

 

The criminal background check is often the missing piece in your employee search puzzle.  A criminal background check will check your potential employee’s criminal record
to determine if he has had any convictions in the past. Most of the time a criminal record check simply provides the assurance that you are hiring the right employee. Although a background check is standard in certain jobs, such as government careers and teaching positions, all employers can benefit from this employee screening service.  

But what happens if you do find something amiss? What happens if your employee’s criminal background check reveals a misdemeanor or felony offense from the past? What you
decide to do with this information is completely up to you. Many employers will look at the facts surrounding the arrest and conviction. When did it occur? If the arrest occurred over fifteen years ago, then it could have been a one-time mistake. However, if there are numerous criminal convictions over the past five years, then this is something different. Furthermore, what was the crime committed? Theft, white collar crime, assault, murder, homicide, arson, criminal sexual conduct or any other felony-related crimes should act as a red flag, especially if the job entails working around money, important documentation or other people.  

There is one final factor you need to consider when choosing your next employee and that is your own intuition. You should always go with the person you feel confident with and who not only has what it takes on paper, but also has that extra something that matches your company. Never underestimate the power of your instincts. However, take the cautionary road by including the interview, the social security verification, the reference check and the criminal background check in your employee hiring process.

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Is an Employee Driving Report Necessary for my Business?

Wednesday, January 20th, 2010

A driving record is important for a number of reasons. For one, a driving record will document all the different violations, points loss, insurance details, vehicle details and accidents of the past – all of this information will impact your car insurance rate and thus, the better driving record you have, the better car insurance rate you will be offered. However, a driving record is not only an essential document to order as an individual, but it can also be a great way to determine if a person is suited for a job in your company. For business owners, no matter the type of business, an employee driving report will give you the insider knowledge into someone’s habits on the road. This is especially important in occupations where driving is part of the job description.  

If you employ any type of driver, then an employee driving record is something that should not be missed. This goes for those who are employed to drive schools buses, tour buses,
taxis, limousines, delivery trucks and so forth. However, there are several careers where driving may not be the main job criterion but where driving is most certainly necessary. Furthermore, if you are offering
a company vehicle to your employees, then you are not only putting other drivers at risk by not checking an employee’s driving record, but you are also putting your company’s name and reputation on the line
as well.  

Client- Based Companies and Employment Screening Driving Reports  

There are certain careers where client satisfaction is of utmost importance and where good people skills will drive your business forward. This is true in the real estate industry
and any other sales-related field. Very often this client interaction does not occur just in the comforts of the office. In the case of real estate, client interactions also take place on the road as a realtor navigates through the streets showing houses to potential buyers. If you discover through an employment driving report that your new realtor
is also a speed demon on the road, you might not feel comfortable letting him drive a company car filled with potential clients (and, racing down the freeway at 40 miles over the speed limit, these clients are most
likely not at ease either). Furthermore, it will be embarrassing not only for the driver, but also for you as the business owner, when your company car is pulled over on the side of the highway for speeding or
drunk driving. There is no catchy slogan that will help your company in this situation.  

If you own any type of client-based business where driving to and from work, or driving around throughout the day is part of the job description, then it may be a good idea to
check the driving records of your potential employees.   

Safety and Driving Reports 

Another industry where a driving report should be essential when choosing employees is in the construction and earth moving industry. Operating heavy machinery not only requires
a certain ticket and license, but should also involve an employer check into a potential employees’ driving backgrounds to make sure they have not made a lot of mistakes on the road. Careless highway driving
can often lead to careless heavy vehicle driving as well. And, when you are on a job site, safety always comes first. Any heavy machinery operators from pavers to dozer drivers, from heavy duty mechanics to
backhoe drivers, should not only have the experience and the qualifications needed to drive these machines, but also have a clean, or near clean, employee driving record. After all, in most instances, it’s your company
name that is on the machines and your men working in the field, so you want to protect both your reputation and your workers from any unsafe situation.

Careers with Children and Employee Driving Records

With a career that is, in any way, children-orientated, there are a number of employment record checks that should be included in the hiring process. Most government agencies
and schools require not only certification, but also a criminal background check and social security verification for anyone wanting to work around children. However, a driving report is also an important document to
check. This should be required for teachers, day care workers or nannies to name a few. Teachers often drive students to extra-curricular activities, such as basketball games, especially if they happen to be the coach.
Furthermore, many childcare workers will drive on field trips and many daycares offer a pick-up/drop-off service for busy moms. Nannies are often given access to a vehicle to drive the children to the library,
school and other places throughout the day. If your potential child care worker has three DWI offenses, then you might think twice about putting her behind the wheel of your daycare van. You need to put the
protection of the children first and this means hiring only the most experienced and safest people to work on your team.  

There are a number of careers where driving is the main criterion; however, there are even more occupations where driving may not be the most important aspect of the job description, but is necessary on a daily basis. Regardless of whether you own a trucking company or a child care business, it is important to look into potential employees’ driving records and other employment background services before handing out the job. It is not only your company’s reputation that is on the line – it is also the safety of clients, workers, children and other drivers on the road. A driving report can give you that extra protection both on and off the road to help you make the best decision about your next employee.

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Is Employee Theft Ruining your Business? Three Ways to Uncover your Risk

Wednesday, January 20th, 2010

Employee theft and fraud committed by employees cost US companies approximately $20 billion in 2009. Furthermore, 30% of all businesses failed due to employee theft. All business owners believe that they have protected their company from any external criminal acts but what about those crimes that happen on the inside? Have you protected your business from the threat of employee theft? Below are three ways to know for sure.  

  1. Consider all Possibilities of Employee Theft.

 

Many companies do not realize how many different crimes constitute employee theft and how these petty offenses can actually add up. Consider the following ways in which an
employee can steal from your company (and what is this doing to your reputation and your business?) 

Employee theft can include:  

  • Corporate crimes, including embezzlement, extortion, insider trading, racketeering, money laundering, bribery and blackmail. These are often referred to as white-collar
    crimes and, if the employee is caught, he/she faces felony convictions, hefty fines and time in prison. However, many white-collar crimes go undetected, especially in multi-million dollar corporations. Furthermore,
    even if the employee is caught, you may still lose out on hundreds of thousands of dollars in theft.

 

  • Petty theft crimes include stealing money directly from the cash register, stealing goods from the store or the back of the store and switching price tags on
    items. Many employees will take an extra $20 from the cash register every once in a while and, odds are, you, the owner, won’t even realize it. However, $20 dollars here, $50 dollars there, can all add up and
    negativity impact your business. It is important to be aware of every cent that comes in and goes out.

 

  • Fraud crimes include forging receipts in order to pocket the money, creating false accounts and pocketing the money, accounting scams, shipping and billing scams
    and voiding receipts to pocket the money. Fraud crimes are often hard to detect because they go on behind closed doors and often involve your most trusted employees.

 

  • Additional employee theft schemes include stealing office equipment, stealing gift cards, or pocketing ‘lost and found’ items. Sure, these crimes may seem
    petty in comparison to some of the other employee theft crimes discussed, but they can still negatively impact your company.

 

  • Insurance crime includes such things as claiming worker’s compensation for a false injury. This is something that occurs more often than most employers realize, especially in labor-intensive industries.

 

  1. Invest in Internal Security Measures

 

Many businesses will have video cameras, mirrors and even security guards set up throughout the store and in the parking lots. However, what about in the back? It might be
a good idea to install a security camera in the back room as well as in the front of the store just to be sure that everyone is behaving. Some larger companies will include an internal security department on
the payroll. These specialists are responsible for auditing and monitoring how employees are spending their time, and the company’s money. They will investigate any leaks in the system and ensure that all finances
are 100% accounted for.  

Of course, the amount of internal security you invest in will depend on your financial budget, the risks involved and the size of your business. Companies with hundreds of employees
or financial institutes will most certainly benefit from internal surveillance while a small corner store may look into additional methods of monitoring employees. One of the best ways to avoid employee theft is to stop it
before it can happen. This brings us to the third point and where employment background checks come in handy.  

  1. Know Who You Are Hiring

 

Once you are aware of the different employee theft crimes that may be going on behind closed doors, it is important that you uncover the truth about your employees or any potential
employees. 45% of all potential employees will have a criminal record, poor driving record, poor credit report or a worker’s compensation claim. What this means is you could be risking hiring the wrong person
without even realizing it.  

Knowing your potential employee’s background through employment background checks is a great way to eliminate the chances of being a victim of employee theft. Red flags on an employee background check include any shoplifting or white collar crimes convictions
on the criminal background check, any unusual worker’s compensation claims on a credit report, or any problematic debts on a credit report. Although these factors will not necessarily predict that an employee
will cause problems and steal from your company, they do separate this employee from someone who has a clean employment background check and high credit rating.  

There is no way to 100% guarantee that your business will not be caught up in an employee theft scheme at one point or another. The best ways to prevent employee theft before
it happens is to simply be informed, be aware and be prepared with the right knowledge, the right internal surveillance equipment and the right employment screening services.  
 
 

 
 
 
 

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How to Avoid White Collar Crimes in your Business – Employment Background Services

Tuesday, December 22nd, 2009

White-collar crimes are crimes committed in the business environment. They usually involve an employee or a group of employees who are taking money from the company. Employee theft is one of the most common types of white-collar crimes but there are several other severe crimes that fall under this term, including the following:

  • Fraud
  • Identity theft
  • Embezzlement
  • Exhortation
  • Insider Trading
  • Racketeering
  • Larceny/Theft
  • Money Laundering
  • Bribery
  • Blackmail

Any business owner, regardless of the size of the business, should be aware that employee theft, white-collar crimes, fraud and other corporate crimes are constantly on the rise. Furthermore, business owners should be aware of the different methods involved in stopping white-collar criminal behavior in their business before it’s too late. This may include installing security measures, hiring additional security staff or completing employee background checks during the hiring process. These measures will help reduce your company’s chance of becoming just another statistic in a long line of white-collar crimes.

Statistics on Employee Theft and White Collar Crimes

The statistics surrounding corporate crimes are astonishing to say the least. Below are some of the facts and figures that make up the United States white-collar crime industry.

  • Nearly one third of all employees commit some degree of employee theft, according to the Department of Justice.
  • Employee theft costs businesses over $50 billion annually in losses, according to the US Chamber of Commerce.
  • Employee theft accounts for ten times the value of street crime losses annually in the USA.
  • The banking industry reports the highest loss due to employee theft and white-collar crimes with $1 billion annual losses.
  • Employee theft is increasing at a rate of 15% annually and, the FBI reports, is one of the fastest growing crimes in the USA.
  • Approximately 33% of all new businesses fail because of employee theft.
  • Approximately 2% of all business sales are lost because of employee theft.
  • The average organization loses more than $9 per day per employee due to fraud and other white-collar crimes, according to the Association of Certified Fraud Examiners.
  • The average organization loses about 6% of its total revenue due to employee fraud and other white-collar crimes, according to the Association of Certified Fraud Examiners.
  • The most costly abuses occur in organizations with less than 100 employees, according to the Association of Certified Fraud Examiners.
  • Each family will pay an additional $300 per year in order to subsidize business losses due to employee theft.
  • 75% of all employees steal from their employers at least once throughout their careers. In many instances, these are petty thefts, but, in other instances, these will be hefty corporate crimes.
  • Furthermore, at least half of these 75% will steal again from a different employer.

These statistics will make your jaw drop. But is there any way to prevent white-collar crimes and fraudulent behavior in the workforce?

Fighting Back Against White-Collar Crimes

One of the ways in which employers are fighting back against this criminal pandemic is by installing internal surveillance to monitor all employees. This can be an excellent way to cut down on employee theft and other white-collar crimes. Some larger corporations also have an internal security department that focuses only on employee surveillance. This may seem a little drastic but, when it comes to white-collar crimes, you can never be too careful.

Another way to reduce employee-related crimes is by doing an employee background check on all employees. Employment background checks services will range in specificity but can include the following:

  • Credit reports – allow you to see a potential employee’s credit history.
  • Social security verifications – allow you to see past employment history and to ensure that your employee is who he says he is.
  • Criminal background checks – allow you to see a potential employee’s criminal record. Criminal background checks include convictions and arrests for anything from DWI offences to drug crimes, and everything in between.
  • Driving Records – allow you to access a potential employee’s past driving record, which is always a smart move if your employee will have access to a company vehicle or if the position involves driving in any way.

Employment Background Screening

The reason why employment background checks are becoming more and more popular for business owners is because they provide a way to eliminate the risk of white-collar criminal activity before it happens. Employee background checks can be accessed through the Internet and performed in less than one minute. They can provide all business owners with an extra level of assurance that their employee does not come with a long line of previous white-collar criminal activities or fraudulent behavior.

In addition to employee background screening services, it is important that you always perform a stringent interview during the hiring process. This will help you assess the character of your potential employee and determine if he or she is a good fit with your company.

White-collar crimes may be on the rise but that does not mean that business owners should simply sit back and allow their companies to be corrupted. Employment background services provide you with a method of stopping insider corporate crimes before they happen. And this is the best protection of all.

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