Five Essential Steps to Strengthen Retail and Distribution Security
Seasonal Hiring and Heightened Security Risks
Every year, as the holiday season approaches, retailers and distributors turn to seasonal and temporary staff to meet rising demand. While these workers keep operations running during pivotal times, they also introduce new security risks. Warehouses and distribution centers often already face challenges such as theft, but when a surge of new employees that may have limited training and less company loyalty are brought in, these risks are amplified.
According to the National Retail Federation, a combination of theft, fraud and errors cost retail business an estimated $112 billion in 2023 alone. Internal theft, including employees stealing goods or conspiring with external personnel, is one of the most prevalent causes of this statistic. The stakes being even higher within logistics and distribution. The National Insurance Crime Bureau (NICB) states that warehouse losses and cargo theft cost billions annually, with incidents usually increasing during peak shipping seasons such as the holidays.
While these situations and statistics are widely recognized, the responsibility falls on businesses to be proactive. By implementing a thoughtful set of security best practices, companies can both anticipate vulnerabilities and equip seasonal staff to succeed. Consider the five core practices below to help secure your retail and distribution centers during the holiday season.
1. Conduct Smart, Targeted Background Checks
When hiring in large numbers for the holidays, speed often takes priority. However, skipping background checks can expose businesses to unnecessary risk, especially when hiring for high-stakes roles. Employees who are given unrestricted access or who are assigned to packing or staging have more direct access to valuable goods than those who handle other tasks, representing higher risk positions.
Applying a universal approach isn’t always reliable and not always legally permissible, making targeted background screenings for higher-risk positions essential. These checks can make a critical difference by helping to prevent costly incidents before they occur. Common screenings may include criminal history, identity verification and employment history confirmation.
The Association of Certified Fraud Examiners (ACFE) has consistently found that asset misappropriation, or stealing company assets, is the most common form of occupational fraud and has occurred in more than 80% of the cases studied. Although proper background checks will not eliminate this risk entirely, it drastically reduced the likelihood of hiring someone with this history of behavior. For organizations committed to warehouse theft prevention, this is the first layer of protection.
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2. Establish Clear Policies and Communication
Seasonal workers often come in waves and may not receive the same depth of onboarding as permanent staff, but this is when clarity matters most. Companies should set expectations and consequences upfront. Especially during high volume seasons, it’s important to clearly define what is theft, how employees can report suspicious activities and what consequences are for violations. By bringing the organization’s awareness of the threat to its employees, everyone takes on the responsibility for preventing it.
Without this explicit knowledge, staff may see gray areas that can quickly add up across merchandise and the workforce. Training sessions that emphasize integrity, reporting mechanisms and company values help eliminate ambiguity. According to the Occupational Safety and Health Administration (OSHA), research shows that clear communication and training can help reduce workplace incidents up to 70%, emphasizing how this guidance not only improves safety but also strengthens ethical behavior among employees.
Transparency also strengthens culture. Employees who feel informed and responsible are less likely to rationalize theft. Creating an open-door policy with supervisors and providing anonymous reporting ensures workers can flag concerns without fear. With expectations and reporting procedures clearly established, the next step is to control physical access.
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Partner with Protos to safeguard your retail and distribution centers this holiday season. Talk to a Protos expert about your security plan today.
3. Limit and Monitor Access to Sensitive Areas
Another pillar of logistics security solutions is access control. Seasonal hires often start at once and without careful planning, companies often grant blanket access to areas that should be more secure, which creates unnecessary opportunities for theft. A key strategy is to restrict access to zones that are only relevant to specific job positions. Badge systems, coded doors or physical security supervision can enforce these boundaries. Additionally, surveillance cameras should cover critical areas such as loading docks, packing benches and employee exits to provide both deterrence.
Many leading distribution operators invest heavily in access control and surveillance as part of their loss-prevention strategy. While not every business requires enterprise-level infrastructure, the same principle applies: increased visibility and restricted access make opportunistic theft less likely and help investigations when incidents occur.
While access control reduces opportunities for unauthorized activity, it can’t prevent all losses on its own. To fully safeguard merchandise, pair restricted access with strong inventory tracking and verification processes that catch discrepancies early, before they escalate.
4. Strengthening Inventory Controls
Even with strict access, weak inventory processes can leave organizations vulnerable. With the surge of activity and staff during seasonal times, it’s important to make frequent audits, cycle counts and to verify high-value items. Implementing dual procedures adds a layer of accountability that makes loss less likely. Immediate documentation and investigation of discrepancies also ensure that minor issues don’t grow into larger problems.
Technology can also further strengthen inventory oversight. Modern Warehouse Management Systems (WMS) can flag unusual patterns and mitigate overall risk. AI tools, along with human checks, help spot mistakes or unusual activity that regular audits might miss. Combining these controls with technology can create a well-rounded framework for preventing theft, ensuring accuracy and maintaining operational efficiency.
5. Provide Adequate Supervision and Support
Even the best policies, access controls and inventory systems rely on people to work effectively. Seasonal staff often operate in fast-paced and high-pressure environments where supervisors may be stretched thin. Maintaining an authoritative presence during peak times not only discourages thefts but also ensures employees are getting the support they need.
Supervisors should be visible, check in with staff and observe workflows – allowing them to identify unusual behaviors within employees. While simultaneously making workers feel supported. Employees who feel undervalued or overlooked are more likely to rationalize misconduct.
According to the National Insurance Crime Bureau (NICB), distribution centers and transportation hubs are common targets for theft. While organized crime is one potential threat, poor supervision and low morale can be just as damaging. Leadership serves as a link between strong policies and consistent practice; investing in their presence during holiday peaks is a proven way to minimize risk and maintain a positive, secure workplace.
Secure Your Seasonal Operations with Protos
Managing seasonal and temporary staff comes with unique security challenges. From clearly communicating policies to limiting access, strengthening inventory controls and providing strong supervision, each step builds a comprehensive defense against theft. When implemented together, these practices create a culture of accountability, visibility and integrity that safeguards both company assets and employees. Protos Security provides services that enhance your organization’s security and oversight, helping ensure operations run smoothly and securely throughout the holiday season.
