Did you know that according to a Forbes survey, external theft accounted for 37% of retailer’s shrink, followed by employee or internal theft at 28.5%, and process or control failures at 25.7%. CNBC reports that retailers’ losses from shoplifting hit $94B in 2021, and the shrink rate is increasing, eating into margins and crippling the retail industry. It’s no wonder that over half of SMB retailers have installed or updated security cameras in the past year to improve surveillance and reduce theft (Security Magazine).
But did you also know that 75% of employees have stolen at least once from their employer, and more than 30% of business bankruptcies are due to employee theft (CalRest.org and Service Management Group). 90% of all significant theft losses come from employees (Willis North America), and cash theft is the top cause for over 20% of businesses (Balance Innovations). Shockingly, 60% of employees would steal if they knew they wouldn’t get caught (FBI).
The question that begs to be asked is: why aren’t we recruiting for security values with moral engagement and integrity as qualities just as important as the ability to fulfill the needs of the job? According to SHRM, 40% of employees who steal from their work have experienced HR red flags prior. When it comes to insider threat, a simple 10-minute questionnaire can save the company millions and prevent a complete catastrophe. In 2022, the average cost of an insider attack is $17.19 million (Ponemon Institute).
It’s time to prioritize security values and integrity in our recruitment processes to prevent losses and protect our businesses.