Combat Retail Theft With 4 Strategic Hiring Tactics

As organized retail crime and smash-and-grab robberies garner headlines, large retailers and customers alike are concerned about the growing issue of retail theft. In response, retailers including Target and Starbucks have resorted to closing locations, while many drugstores and supermarkets now keep items that are frequently stolen under lock and key from customers and employees.

Whether theft and shrinkage occur due to internal or external sources, this issue is a nuanced one—but your approach to hiring can be part of the solution. Instead of focusing solely on reactive tactics, implementing these four hiring strategies can help you better prevent shrinkage and theft.

Self-checkout lanes can be a win-win for retail stores—but managing theft risk is a delicate balance.

More than half (53%) of Gen Z and Millennial shoppers prefer self-checkout, according to the latest Digital Commerce Index from NCR Voyix. For retailers, self-checkout helps reduce payroll costs at brick-and-mortar stores. However, self-checkout is also ripe with opportunity for theft by customers leaving without paying or neglecting to scan items. In fact, retailers lose more due to theft at self-checkout than to organized retail crime, Retail Dive reports.

Rather than eliminating the lanes altogether, savvy retailers are fighting theft by reducing reliance on self-checkout—or boosting supervision with additional staff. For instance, large retailers including ShopRite, Dollar General, and Walmart have cut back on self-checkout in favor of more staffed checkout stations. Costco has added more employees to assist customers with self-checkout. Another option is to place self-checkout lanes in an enclosed area with one entrance and one monitored exit.   

Conducting a cost/benefit analysis can help HR managers evaluate whether the expense of hiring additional employees or increasing existing workers’ hours is justified by the potential to reduced self-checkout shrink. For many enterprises, it’s proving to be worth it.

When there aren’t enough employees on the floor to keep an eye on customers, opportunities for theft can easily arise. Nearly three-fourths (72%) of retail workers have experienced a situation where they saw a threat, but couldn’t respond due to understaffing, the 2024 Retail Worker Safety Survey reports. Sparsely staffed stores can also spur employee theft by unmonitored workers.

With turnover rates rising for retail workers at a whopping 24.9%, hiring faster to keep critical roles filled is one of the most effective ways to fight theft. Top solutions that can speed hiring and fill vacant retail roles quickly include:

Reported shoplifting increased by 24% in the first half of 2024, according to data from the Council on Criminal Justice. While external theft accounts for 36% of retail shrinkage, internal theft isn’t far behind. Theft by employees accounts for 29% of retail shrinkage, costing retailers an average of $2,180 per incident.

The right retail background check solution can help you screen candidates quickly and fairly, while supporting compliance with local, state, and federal regulations. To enhance efficiency, choose a background check provider that lets you:

It’s likely your team needs to quickly and confidently select the right background checks for positions varying from cashiers to warehouse employees to store managers. Solutions designed for hiring at scale should allow even dispersed hiring teams to order the appropriate preset screening for each position with one click. So if your current process requires additional steps, ask your provider about how to level up.

Automated adjudication workflows are another way to speed hiring so top candidates don’t slip away. Look for a solution that allows you to customize adjudication rubrics to:

This minimizes time spent on manual adjudication, while helping you mitigate legal risk. Tools that allow candidates to provide additional context around criminal records are another great way to support fair chance hiring while expanding your candidate pool. Look for strategic background check vendors who can provide automated adjudication technology.

Retail teams hiring at scale can’t afford the time or budget required to navigate multiple tech tools, platforms, and duplicate entry workflows. And you absolutely don’t have to; the best background check partners will integrate with your ATS/HRIS software. Make sure to ask your vendor:

Employees who feel underpaid, undervalued, and unappreciated may feel entitled to steal or believe their actions are justified by economic strain. Unhappy employees may also be unmotivated to stop or report theft by customers or co-workers. Inadequate compensation and lack of career development opportunities—the biggest factors in retail employee turnover, according to a 2024 McKinsey report—can also contribute to retail shrink.

When employees care about your brand, their team, and your shared success, they’re less likely to participate in or ignore theft. Encouraging this engaged attitude starts with your hiring process.

Retail shrink and theft can become a vicious cycle that costs you revenue in more ways than one. As theft increases, your brand image suffers. Customers may lose confidence in your products, and hiring top talent can become a struggle. A proactive approach to preventing theft starts with your recruiting process. Checkr’s modern background checks can help.

Retail background checks are an essential tool for ensuring quality hires and mitigating risk in the workplace. Checkr’s built-in integrations with popular retail ATS/HRIS solutions save TA teams time and reduce manual effort, helping you fill open positions quickly. Our user-friendly, mobile-first candidate experience keeps top talent engaged, reducing dropoff. Easily select from background check packages designed for different retail roles or customize them to your needs. Plus, leverage our automated adjudication tools to hire efficiently, fairly, and confidently.

Get in touch now to learn more.

About the author

Karen Axelton writes about business topics and best practices. She has written hundreds of articles on business subjects, including background screening, hiring and employment trends, human resource management, and the use of technology in the workplace. Her work includes educational articles, e-books, white papers, and case studies.