Retailers in the United States lose approximately $25 billion in merchandise annually due to theft. Of this, over $11 billion is attributable to employees. Employee theft, like all crimes, has its victims.

The most obvious victim is the retailer: the loss of merchandise decreases the availability of product to the consumer. The loss of cash impacts the capital available for refurbishing, expansion, or promotion, while making the analysis of the company’s true performance more difficult. Time and manpower are diverted from other company projects trying to figure out why inventories are off, or why cash registers don’t balance.

The store’s employees suffer in the form of reduced benefits and opportunities, deteriorating morale, or even by the loss of a job if the company goes under as a result.

There are other less obvious victims of retail theft. Vendors lose sales because stolen merchandise is harder to replenish. The consumer pays higher prices or receives less service as a result of retail losses. The government loses tax revenues.

Everybody stands to gain if employee theft can be prevented or controlled. Enter the Step One Survey.

Retail loss and shrinkage comes from four areas: shoplifting, employee or vendor theft, and administrative errors. Shoplifting is the kind of theft most retailers are familiar with. But employee theft is just as important to the bottom line. No company wants to believe their own employees could be stealing from the company—and the good news is that the vast majority don’t. But the small percentage of employees who are dishonest affect the livelihood and well-being of the entire company.

The causes of dishonesty are not widely understood and there is no one theory which best explains why employees steal. Most research indicates that deviant acts are “caused” by a combination of personal and situational factors. These variables simultaneously contribute to theft behavior. The three major conditions that need to be present according to one popular theory are motive, opportunity, and lack of risk.

The logical place to begin deterring employee theft is by hiring good employees. The pre-employment process should include information that will help an employer identify those individuals most likely to steal.   

In the interview, open-ended questions will allow the applicant to be truthful or deceptive: “What would you do if you saw a co-worker using drugs while on the job?”

or “What kind of mistakes could you have been fired for on your last job?” Be aware that polygraph tests are no longer allowed in most states as a screening tool. However, the use of “pencil-and-paper” or "computer/internet" tests to determine honesty are an excellent choice.

The Step One Survey is an employer's first step in evaluating a job candidate’s qualifications for employment. It has two parts, the first being a direct-admissions structured interview format that asks about recent work history, record of honesty, drug/alcohol use and related issues. The results of the "interview" are assessed by the company to evaluate the candidate's suitability for employment. The second part of the Step One Survey assesses the candidate’s attitudes toward integrity, substance abuse, reliability, and work ethic.

Quick Results
In about 20 minutes, job applicants respond to questions on the Internet, on your computer or in a booklet. The printed report summarizes the candidate’s admissions of questionable behavior and the significant responses to inferential questions.  Additionally, the Step One Report generates a series of interview questions targeted to the candidate.

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