To quickly address the need for more employees during peak seasons and holidays, many employers expedite their standard screening processes by bypassing background verification (or simply conducting it with minimal standards). Although seasonal or holiday employees are only temporary workers with limited access to company operations and resources, they are statistically more likely to be engaged in theft, fraud, or the exploitation of employee loopholes, especially as broadscale employee theft is actually on the rise.
The choice to shortchange background screenings for seasonal or holiday employees can lead to major financial windfalls for organizations. In this article, we’ll explore the most common problems employers face during seasonal hiring and offer our suggestions to prevent future issues with employee theft and fraud.
Primary Challenges of Seasonal and Holiday Hiring
Let’s discuss some of the major problems employers face when they conduct seasonal hiring without implementing comprehensive background screenings.
Expedited Hiring – Although hiring at a faster pace is an understandable choice during peak periods of business, it not only increases the risk of employee theft and fraud, but also decreases the likelihood that your organization will provide its normal standard of customer service or adhere to stated company ethics, potentially detracting from long-term business and damaging organizational reputation in the process.
Employee Theft – Hiring temporary employees without robust background screenings is an inherently risky choice, especially as recent research indicates that employee theft incidents cost employers three times more than shoplifting incidents. Similarly, research from the University of Florida’s Security Research Project demonstrates that “retail shrink” (loss of inventory by theft or fraud) is 40% higher among stores with less than 75% permanent employees. With this data in mind, employers should emphasize implementing background screenings that provide information on candidates’ employment and criminal histories well before training and employment begins.
Employee Fraud – Similarly to employee theft, research from the Association of Certified Fraud Examiners demonstrates that incidents of internal fraud go up by 20% during holiday seasons. The combination of increased business/sales, overextended supervisory staff, and a more hectic workplace environment leaves organizations vulnerable to acts of fraud, including from new or temporary employees.
Inadequate Employee Training – Many theft and fraud experts recommend that employers continue to implement standard theft/fraud training for temporary employees, including training that articulates or emphasizes the ethical guidelines of the organization. Although there are instances where temporary employees deliberately take advantage of employee loopholes, there are also new employees who commit theft or fraud unknowingly (voiding an item or purchase without supervisory approval, for example). With better training and managerial guidance, these types of incidents are much less likely to occur.
How to Counteract Issues with Employee Theft and Fraud
There are a number of steps employers can take to prevent or counteract issues with employee theft and fraud during holiday or seasonal employment periods.
Criminal Checks
Criminal background checks will provide detailed information about a person’s past, including any arrests, convictions, and even civil court filings. This information can help employers make more informed decisions and determine whether or not a potential employee is suitable for the role. It can also alert employers to any potential red flags that may need further investigation.
County criminal searches research criminal records at the county court and provide the most up-to-date records and depositions available for felonies and misdemeanors. Statewide searches, are repository of case information provided from the county level to the state repository. Additionally, a federal criminal district search can be conducted to report federal crimes, such as Bank Robbery, Mail Fraud, SEC violations, and Interstate Drug Trafficking.
Rescreening
Although some businesses already conduct background screenings for new temporary or seasonal employees, often they fail to re-screen those who they hired a previous year or season. Adopting a policy to rescreen employees to ensure their records and qualifications remain the same since their last date of employment can protect your company against loss from theft, fraud, or legal disputes.
Focus on Compliance and Policy Updates
With each new season, your organization should review any legal changes (local, state, or federal) that could impact your screening processes and other facets of your business. Remember that although you must remain compliant with applicable laws, you are also capable of updating your company policies on background checks to, for instance, require that all employees (temporary, part-time, full-time, permanent, etc.) must agree to a background screening as a condition of employment. Establishing this policy at an organizational level can actually boost employee engagement and satisfaction because it demonstrates that the same values, ethics, and processes apply to all employees.
Streamline Seasonal and Holiday Background Screening with The Orsus Group
It’s understandable why employers become overwhelmed by holiday and seasonal hiring. Unfortunately, attempting to promptly meet the need for more employees and workforce support often leads to less thorough screening processes. By adopting this approach, organizations can unknowingly open the door to significant incidents of theft, fraud, or reputational damage.
The Orsus Group offers comprehensive background screening services that provide your organization with a full picture of a candidate, allowing you to gauge their suitability for a temporary or permanent position. We strive to help you make an informed choice for your organization, enjoy peace of mind about your choice, and sustain high hiring standards even through peak seasons of business.
Ready to streamline your background screening process for seasonal and holiday hiring? Contact us today to let us know how we can support you.