Interviews are the first step to building trust between a potential employer and a possible employee. While candidates may give a great interview performance, you never know if there are hidden layers in the cake that is their workplace or personal past.
Hence, it’s best to conduct background checks in retail hiring to ensure the candidates are really who they say they are and for reassurance they haven’t engaged in prior crimes that are preventing them from working in a retail setting. Let’s discover why it’s important to conduct these background screenings and how the role of a recruitment agency can make them more proficient.
The Importance Of Retail Employee Background Screening
Retailers rely on employees as the basis of a positive brand reputation, maintaining security, and providing excellent customer service. Candidates should have honesty and integrity in handling company assets such as running the cash register. Failing to run background checks on retail candidates can lead to fraud, theft, reduced workplace safety, and poor customer interactions.
The Role Of A Retail Hiring Service

Some companies have a recruitment agency or outside entity that conducts background checks for them to ensure the utmost safety and security for retailers.
Outsourcing background checks to a retail hiring service boasts the following benefits:
- Criminal background checks to identify prior offenses.
- Employment verification to confirm previous work experience.
- Education verification to validate education-based credentials.
- Reference checks to gain valuable insights from past employers.
- Drug test to ensure a safe and drug-free workplace.
Preventing Fraud and Theft
Conducting thorough retail hiring background checks is a proactive approach to preventing fraud and theft. Since retailers usually hold large volumes of cash in their registers and sometimes have high-valued merchandise on their shelves, they need to be careful when onboarding candidates that they do not accidentally allow a thief to participate in their business.
If you are willing to give a prior thief a chance at a retail job again, consider having them take National Association for Shoplifting Prevention courses. Those who have shoplifted before usually have another offense about 3% of the time if they have undergone these educational courses.
Enhancing Workplace Safety

Workplace safety is a top priority for companies and a huge reason why background checks in retail hiring should be conducted. Since employees interact with customers and handle sensitive information such as processing transactions with debit and credit cards, retailers should hire only trustworthy individuals.
Hiring people with a history of violent or criminal behavior means workplace safety could be at risk. For example, they could have physically assaulted a customer or stole from the cash register at a prior retail job. However, if they have undergone a rehabilitation program to turn around their ways before re-entering society, you can give them another chance with strict surveillance and close guidance to ensure a relapse doesn’t occur.
Protecting the Company’s Reputation
Retail hiring background checks are vital for protecting a company’s reputation. Customers expect a safe and welcoming shopping experience headed by employees who provide the best customer service. Any negative incidents involving an employee could damage a company’s reputation if they aren’t careful about who they are hiring. These background checks can ensure that employees onboarded only have the highest ethical and professional standards in the workplace.
Reducing Employee Turnover
Prioritizing background checks in retail hiring keeps turnover rates low. In an industry where turnover rates are already too high, instituting background checks is a safety net for maintaining better employee retention. This post-interview activity can ensure that onboarded employees have the skills, qualifications, and reliability to perform roles for the open vacancy. Evaluating their past work history, verifying credentials, and assessing criminal records contribute to hiring the best applicants who will stay with the company for long-term.
Legal Compliance and Liability Protection
Retailers have an ethical responsibility to ensure who they hire does not pose risks to other employees and customers. Conducting background checks ensures compliance with state, local, and federal laws in relation to quality employment practices. Since working in retail involves handling money and working with sensitive information, the government wants to ensure retailers are initiating background checks to reduce the possibility of repeat crime.