The Loss Prevention Dilemma
Solving the employee theft and vendor fraud problems has been a complex challenge for retailers since the beginning of commerce. The losses caused by these two retail cancers continues to take a tremendous toll on retailers' top objectives, including pricing strategies and company growth. In a world in which consumers can shop for anything desired without ever leaving their sofa, retailers are looking for ways to fund store expansion and price reductions, all while maintaining a high level of customer satisfaction. As a result, executives of every retailer in the world consistently look to shrink reductions as a source for funding such initiatives.
This puts a tremendous amount of pressure on loss prevention executives charged with reducing losses. And with a good portion of losses coming from employee theft and vendor fraud, today's loss prevention executives need viable and affordable solutions to help get them to the finish line. Before searching for solutions to shrink-based challenges, it is important to understand what causes these dishonest employees and vendors to act on their desire to defraud a company.
Understanding the Root of All Evil
In a whitepaper published by The Calibration Group entitled, The Hawthorne Effect, the behavioral science behind why people commit crimes and other unethical behaviors is revealed. The whitepaper explains that every crime or misdeed that has ever been committed has one thing in common. Here is an excerpt from the whitepaper:
"Although there are many motives for committing crimes against retailers, every shoplifter, dishonest employee, and dishonest vendor that has ever defrauded a retailer did so with one foundational thought in mind: they didn't think they'd get caught.
"The truth is that every crime or unethical behavior that has come to fruition has done so because of this same thought. From the kid taking the proverbial cookie from the cookie jar to the infamous Watergate scandal, this same thought had to be present for these deceitful acts to take place. In fact, in a report entitled, Deterrence in Criminal Justice: Evaluating Certainty vs. Severity of Punishment, Valerie Wright, Ph.D. wrote, 'If there was 100% certainty of being apprehended for committing a crime, few people would do so.'"
In light of this knowledge, it is paramount that retailers create a Hawthorne Effect environment if they want to get the most out of their shrink-reducing strategies. But how can a true Hawthorne Effect environment be built? Iverify.
Iverify and the Hawthorne Effect Environment
The Hawthorne Effect whitepaper acknowledges the distinct and integral part Iverify can play in creating an environment of true loss prevention. Interactive audio and video response solutions play a key role in solving the employee theft and vendor fraud epidemic, according to the whitepaper:
"Creating a Hawthorne Effect environment in retail stores has been the primary goal
of the most successful loss prevention leaders. The question of "How?" is the only remaining hurdle to overcome. It is certainly true that Loss Prevention audits, POS Exception reports, and even the most popular CCTV systems lend their hand toward creating such an environment. But it has been argued that these tools fail to convert the foundational thought of, "I might get caught," to the true prevention-causing thought of, "I know I would get caught."
With Iverify's interactive audio and video monitoring services, a retailer's employees, vendors and customers will not only feel more secure from a safety standpoint, but will be more likely to behave appropriately knowing that one of Iverify's Certified Protection Specialists may be observing the premises from a remote location. Retailers who use interactive audio and video monitoring services do not only enjoy a reduction in crimes such as robberies, burglaries and shoplifting. They also see a tremendous reduction in shrink caused by employee theft.
In a report entitled, Deterrence in Criminal Justice: Evaluating Certainty vs. Severity of Punishment, Valerie Wright, Ph.D. wrote, "If there was 100% certainty of being apprehended for committing a crime, few people would do so." Iverify understands this behavioral certainty and is committed to driving down loss for retailers.
For more information on how to create a true Hawthorne Effect environment, contact Iverify.
Iverify integrates technology, security experience, professionalism and efficiency to deliver the solution customers really need: greater security, plus greater opportunities for additional profitability, all at lower cost.Iverify is committed to making a difference by delivering innovative life safety and property protection solutions, with the core belief that every interaction matters.Iverify has invested over $25 million in professionals, processes and technology to become the recognized industry leader in interactive remote video and audio solutions. Iverify has proven their proprietary solutions can revolutionize security and asset protection when properly designed and deployed. Visit Iverify.net today to schedule your free consultation.