The post-pandemic economy, with its rising inflation and economic uncertainty, has amplified the challenges of managing seasonal hires. Businesses increasingly rely on temporary employees to meet fluctuating demands, particularly during peak seasons. However, the pressures of economic instability and reduced organizational resources make this workforce particularly vulnerable to unethical behaviors, such as theft and fraud, which can have significant financial and reputational repercussions for businesses.
Seasonal employees often face unique psychological and financial pressures that can influence their behavior in the workplace. Understanding these pressures, and addressing them through a psychology-informed approach, is crucial for loss prevention managers. By recognizing the risks associated with seasonal hiring and implementing targeted strategies, businesses can protect their assets, maintain a productive workforce, and ensure long-term success.
The Risks of Seasonal Hires in a Post-Pandemic, Inflationary Economy
Financial stress, exacerbated by the increased cost of living, can drive some seasonal workers to engage in dishonest behaviors to supplement their income. This temptation is particularly strong among those with limited financial stability, who may see unethical actions as a necessary measure to cope with their financial challenges.
Retail businesses are often operating with reduced resources and tighter margins, which can limit their ability to provide comprehensive training and supervision for seasonal employees. The need to quickly fill positions to meet fluctuating demand further complicates matters, increasing the risk of hiring individuals who may not be fully vetted or adequately prepared for their roles. Without sufficient training and monitoring, these employees are more prone to making costly mistakes or engaging in behaviors that could lead to significant losses for the organization.
Moreover, the economic landscape has seen an increase in external pressures, such as organized retail crime, which specifically targets vulnerable workers, including seasonal hires. The combination of economic strain and limited job security makes these employees more susceptible to collusion with ORC groups, further increasing the risk of theft and fraud within businesses. In this challenging environment, employers must take proactive measures to mitigate potential losses and protect their businesses.
Unique Challenges of Seasonal Hiring
Seasonal hiring presents distinct challenges, both in terms of risk management and talent acquisition. The high-pressure environment of seasonal work often leads to increased stress and burnout among employees. They must quickly adapt to new environments and meet compressed timelines and higher workloads, which can reduce productivity and increase turnover.
The temporary nature of these jobs can also deter high caliber candidates who prioritize long-term career growth and work-life balance, resulting in a talent pool that may be less resilient and committed. Furthermore, seasonal workers might not develop a strong sense of loyalty to the organization, which can lead to absenteeism, lower engagement, and ethical lapses. The rapid onboarding and training required for these positions often results in insufficient preparation, leading to mistakes, poor customer service, and even safety hazards.
The perception of job insecurity, common among seasonal hires, can also make it harder to attract talent looking for stable employment, often leading to a reliance on candidates who view the job as a temporary stopgap rather than a serious opportunity. This mismatch between employer expectations and employee experiences can lead to dissatisfaction, early exits, and negative word-of-mouth, which ultimately impact the organization’s reputation and operational efficiency.
Recruitment and Selection Risks
Recruiting and selecting seasonal hires in industries such as retail, hospitality, and service involves specific risks that can significantly impact operations. In the retail industry, the urgency to quickly hire a large number of workers increases the likelihood of bringing on underqualified candidates. This can lead to poor customer service, transactional errors, and inventory management issues.
The rush to meet hiring deadlines may result in inadequate screening processes, leading to the selection of individuals who do not align with the company’s values or who struggle under pressure. Over-reliance on temporary agencies can exacerbate these issues as it reduces the company’s control over the quality of hires, often resulting in mismatches in expectations and job performance.
The hospitality industry faces similar challenges. The sector often requires specialized skills, such as food preparation and customer interaction, meaning that hiring unskilled workers can lead to service delays, customer dissatisfaction, and safety concerns. Seasonal workers may also struggle to integrate into the existing team culture, which is crucial in hospitality where teamwork and consistent service quality are key. The transient nature of seasonal work leads to high turnover rates, which disrupt service consistency and drive up training costs.
In the service industry, the risks are heightened when seasonal hires interact directly with clients. Without proper vetting or training, these workers can lead to service failures, client dissatisfaction, and reputational damage. Additionally, temporary employees may feel less accountable for their performance, knowing that their tenure is short. This lack of accountability can result in lower quality service delivery, impacting customer satisfaction and the overall performance of the business.
Leadership and Organizational Culture Risks
Seasonal hiring also presents significant challenges to leadership and organizational culture. The lack of time for proper onboarding and mentoring often leaves seasonal hires with a minimal understanding of their job roles, which can lower morale and increase the likelihood of errors. Overwhelmed by the influx of seasonal workers, managers may struggle to provide effective oversight, leading to reduced management quality and potential burnout. This focus on managing the immediate needs of the seasonal period can cause leaders to neglect long-term strategic goals and employee development, hindering the organization’s growth and stability post-season.
The rapid integration of seasonal workers can dilute the company’s established culture, particularly if new hires do not share the same values or level of commitment as permanent employees. This can lead to a fragmented work environment where core cultural norms are weakened or ignored. The integration of seasonal workers can create tension with permanent staff, who may feel their job security is threatened or that they must compensate for less committed temporary colleagues. This tension can reduce morale, leading to disengagement and resentment. Inconsistent training and cultural integration can also result in varying customer experiences, damaging the brand’s reputation and customer loyalty.
Addressing Seasonal Hire Risks
Given the numerous risks associated with seasonal hiring, organizations must implement robust strategies to mitigate potential losses. Seasonal hires are particularly prone to engaging in employee crime or counterproductive behaviors due to several factors, including a lack of commitment to the organization, insufficient training, and limited supervision. The large workforce during seasonal peaks can create a sense of anonymity, increasing the temptation to engage in dishonest behavior. Financial pressures and the perception of low wages can also drive individuals to theft or fraud as a means of addressing financial stress.
To address these challenges, organizations must implement strong seasonal loss prevention strategies thorough training and effective supervision tailored to the unique demands of seasonal employment. This involves creating an environment where seasonal workers feel connected to the organization, adequately prepared for their roles, and motivated to adhere to company policies.
Psychological Forces Impacting Seasonal Hires
Several psychological forces significantly impact seasonal hires, leading to potential risks and losses for organizations:
- Lack of Organizational Commitment: Seasonal workers often view their positions as temporary, leading to a weaker emotional and psychological attachment to the organization. This lack of commitment can result in lower motivation to adhere to company policies and standards, increasing the likelihood of counterproductive behaviors such as theft, absenteeism, or negligence.
- Financial Stress: Seasonal workers are often hired for short-term, low‑wage
positions, which may attract individuals who are under financial stress. This stress can drive employees to rationalize dishonest behaviors, such as stealing merchandise or falsifying time records, to alleviate their financial burdens. - Perceived Anonymity: In large-scale seasonal hiring, employees may feel anonymous due to the sheer number of temporary workers. This perceived anonymity can reduce the perceived risk of getting caught engaging in dishonest or counterproductive behavior, leading to higher incidences of such actions.
- Inadequate Training and Integration: The often rushed and superficial onboarding processes for seasonal hires can leave them feeling unprepared and disconnected from the company’s culture and values. When employees do not fully understand or value the importance of their role, they are more likely to engage in risky behaviors, either out of ignorance or indifference.
- Job Insecurity: The temporary nature of seasonal employment can create a sense of job insecurity, leading to stress, disengagement, or even resentment. Employees who feel insecure about their jobs may be less motivated to perform well or follow rules and are more likely to engage in behaviors that expose the company to risks and losses.
Interventions to Mitigate Psychological Forces
Organizations can implement several strategic interventions to effectively mitigate the psychological forces that contribute to risk and loss among seasonal hires.
- Comprehensive Onboarding Programs: A well-designed onboarding program that emphasizes the company’s values, culture, and the importance of each employee’s role can help seasonal workers feel more connected to the organization. This connection can increase their commitment and reduce the likelihood of counterproductive behavior.
- Employee Engagement Initiatives: Engaging seasonal workers in team activities, recognition programs, and feedback loops can foster a stronger sense of belonging and responsibility. Clear communication about potential growth opportunities within the company can further motivate seasonal employees to perform well and adhere to company policies.
- Financial Incentives: Offering competitive wages and performance‑based bonuses can reduce the temptation to engage in dishonest behaviors. Providing access to financial counseling and support services through an Employee Assistance Program can help workers manage their financial stress more effectively without resorting to unethical behavior. Transparent communication about pay structures, benefits, and any available financial assistance programs can also reduce misunderstandings that could lead to financial stress and subsequent risk behaviors.
- Increased Visibility and Monitoring: Reducing the perception of anonymity among seasonal hires can be achieved by increasing the visibility of managers and loss prevention personnel in the workplace. Regular check-ins and monitoring of high-risk areas, such as cash registers and stockrooms, can deter potential theft or misconduct. Encouraging a confidential reporting system where employees can report suspicious behavior can also foster a sense of community vigilance, making it harder for individuals to feel anonymous in their actions.
- Detailed Job Training and Mentorship: For employees who may feel inadequately trained or integrated into the company culture, providing comprehensive, role-specific training that goes beyond basic onboarding is essential. Pairing seasonal hires with experienced mentors can help them navigate their roles and integrate more effectively into the company culture. Offering ongoing training and development opportunities throughout the seasonal employment period can keep employees engaged and improve their understanding of and commitment to company policies and procedures.
- Transparent Communication About Employment Terms: Combating job insecurity requires clear communication about the terms of employment, including the length of the seasonal position and any opportunities for future roles. Ensuring fair and consistent treatment of seasonal workers in terms of scheduling, feedback, and rewards can reduce anxiety and insecurity, making them less likely to engage in risky behaviors. Implementing incentive programs that reward good performance with the possibility of extending their contract or being considered for permanent positions can provide a clear path for continued employment based on performance, further reducing job insecurity.
Case Studies: Risks and Interventions
Several case studies illustrate the risks associated with seasonal hiring and the effectiveness of interventions. For instance, in 2019, a seasonal employee at a major retailer in Louisiana was caught stealing merchandise worth over $6,000 during the busy holiday season. The incident prompted a review of the store’s hiring and monitoring practices for seasonal workers, emphasizing the need for rigorous screening and enhanced supervision. Similarly, in 2018 a group of seasonal workers at a major fulfillment center in the UK orchestrated a scheme where they fraudulently processed returns and kept high-value items, leading to stricter background checks and increased monitoring at the center.
Another case involved a seasonal employee at a well-respected department store chain in California who used counterfeit coupons to purchase items at heavily discounted prices, then resold them online. This led the chain to implement additional training for seasonal staff on ethical behavior and company policies. These examples underscore the importance of implementing strong internal controls, thorough training, and increased supervision to prevent and detect counterproductive behaviors and criminal activities by seasonal employees.
I personally conducted four case studies relevant to seasonal hiring risks that are summarized in the table on p. 51. These studies underscore the critical importance of psychological screening in managing the risks associated with seasonal hires. Across diverse contexts—from convenience stores and retail chains to charitable organizations—seasonal workers with poor scores on risk-oriented psychological assessments were significantly more likely to engage in counterproductive behaviors such as theft, tardiness, and low job performance.
These findings highlight the vulnerability of seasonal hires—particularly teenagers—to deviance when impulse control, responsibility, and conflict resolution skills are lacking. The consistent pattern across these studies suggests that rigorous screening processes, focused on key psychological constructs, are essential for mitigating these risks, ensuring that seasonal workers contribute positively to the organization while minimizing potential losses.
Seasonal Hiring and Collusion with ORC
There is also a potential connection between the hiring of seasonal workers and increased risks of collusion with ORC. The rapid hiring processes during peak seasons often lead to expedited background checks and screening, which can allow individuals associated with ORC groups to gain employment more easily. The lower commitment and accountability typical of seasonal workers can make them more susceptible to influence or collusion with ORC groups, especially if they are offered financial incentives or coerced into participating in illegal activities. Moreover, the perceived anonymity in large-scale seasonal hiring can reduce the fear of getting caught, further increasing the risk of collusion. To mitigate these risks, retailers can implement several strategies:
- Thorough Background Checks: Ensure that background checks are completed even during rapid hiring phases to identify individuals with a history of criminal activity or connections to ORC.
- Pre-Hire Psychological Assessments: Pre-employment screening assessments that measure job‑related integrity, nonviolent attitudes, safety orientations, drug-avoidance tendencies, service orientations, and tendencies to avoid collusion with ORC organizations can be instilled.
- Enhanced Training: Provide all employees, including seasonal workers, with robust training on loss prevention and the consequences of ORC to raise awareness and deter participation in illegal activities.
- Increased Supervision: Enhance supervision and monitoring of seasonal workers, particularly in high-risk areas, to help detect and prevent potential collusion with ORC groups.
- Fostering a Culture of Reporting: Encourage employees to report suspicious behavior and ensure they feel safe doing so, helping to identify and address ORC-related risks.
By understanding and addressing the potential risks associated with seasonal hires, organizations can better protect themselves from the threats posed by ORC collusion.
Teenagers at Risk
Teenagers, as a demographic, may be at higher risk for engaging in employee crime and counterproductive behaviors during seasonal employment due to factors such as impulsivity, peer influence, and lack of work experience. Adolescence is a developmental stage characterized by higher levels of impulsivity and risk-taking behavior, which can increase the likelihood of theft, fraud, or other forms of counterproductive work behavior. Teenagers are also particularly susceptible to peer pressure, which can lead to group-based or collusive behaviors, especially in a workplace setting where peers might influence them.
Additionally, teenagers often lack the work experience and training necessary to navigate workplace challenges effectively. This inexperience can lead to mistakes, misunderstandings of workplace policies, and unintentional violations of company rules. Teenagers may also have a less mature understanding of workplace ethics, making them more vulnerable to engaging in dishonest behaviors without fully realizing the implications.
Employers hiring teenagers during seasonal recruitment efforts should implement targeted strategies to mitigate these risks. Pre-employment risk assessments are essential. Enhanced supervision and mentorship can also help guide teenage employees through the challenges of the workplace. Comprehensive training on company policies, workplace ethics, and the consequences of theft or misconduct can reduce the likelihood of counterproductive behavior. Encouraging a culture where peers monitor and report suspicious activities can also help prevent group-based misconduct.
The Tripartite LP Program for Alleviating Seasonal Hiring Risks
To effectively mitigate the risks associated with seasonal hiring, organizations must adopt a holistic approach that combines focused selection and placement systems, psychology-informed managers, and a risk-focused corporate culture.
- Focused Selection and Placement Systems: Implement robust screening tools, such as psychological measures of employee risk and talent mindsets, to ensure that only the most qualified and low-risk candidates are selected for seasonal roles. These tools help identify potential red flags, such as tendencies toward theft, absenteeism, or poor job performance, before hiring individuals. Strategic placement of hires based on their strengths and potential risks further minimizes exposure to counterproductive behaviors and enhances overall workforce efficiency.
- Psychology-Informed Managers: Equip managers with the knowledge to provide appropriate guidance, supervision, and support to seasonal workers. These managers can recognize early signs of stress, disengagement, or risky behaviors, intervening before issues escalate. Their ability to tailor management strategies to the unique needs of seasonal workers, particularly higher-risk teenagers, reduces the likelihood of workplace conflicts, accidents, and turnover.
- Risk-Focused Corporate Culture: Cultivate a corporate culture that prioritizes risk management and ethical behavior across all levels of the organization. This culture is reinforced through consistent communication of zero-tolerance policies, ongoing training on loss prevention, and a shared commitment to maintaining a safe and productive workplace. This type of risk-focused culture needs to be leveraged to the maximum during higher-risk seasons.
Together, these three elements form a comprehensive framework that not only alleviates the inherent risks of seasonal hiring but also strengthens the overall resilience and productivity of the organization. By integrating focused selection, psychology-informed management, and a risk-focused culture, companies can confidently navigate the challenges of seasonal employment, protect their assets, and ensure long-term success.