Turns out the biggest enemy of retail is its own staff.
According to research conducted by The Global Retail Barometer, American store employees are much more likely to steal from their place of business than standard thieves. The annual report states that hired individuals account for 43 percent of revenues that were lost, while shoplifters account for only 37 percent—a rate that is the second-highest in the world behind Argentina.
Though the ratio may come as a shocker, these instances are becoming more and more frequent in the news. From a Verizon sales representative who stole over 900 phones to a ring of Saks Fifth Avenue associates that racked up $400,000 purchases on stolen credit card information, it’s clear internal theft is becoming rampant. Just last year, employee theft resulted in about $18 billion in lost revenue, according to The Atlantic. But why?
Based on a 2012 study, the magazine speculates the trend is likely associated with low wages—suggesting higher pay rates might buy more honesty from their employees.
Or maybe hiring managers need to improve their vetting methods and select individuals who are more grateful to be getting a check.
[via Racked]
