It’s not just about good food and comfy lodging. The hospitality industry is dependent upon good staff and excellent service. Employees handle money, serve alcoholic drinks, enter guest rooms, and represent the company’s brand of respectful service to guests.

But because of their transient nature and high turnover, restaurants and hotels have high rates of theft, sexual harassment, physical violence, identity theft, fraud, and drug use. As many as 10% of all job candidates in the hospitality industry have some sort of criminal record. The percentage is even higher for part-time, seasonal, and minimum-wage staff members (Source: Jobs for Felons Hub).

However, surprisingly, many restaurants and hotels do not do background checks on employees, leaving themselves open to ruinous consequences.

Substance Abuse
According to Peter Romeo, writing for Restaurant Business magazine, a recent study found drug abuse to be highest in the hospitality industry (19.1%), with roughly one out of five restaurant and hotel employees using illicit drugs. This statistic gives the hospitality industry the highest incidence of abuse among all U.S. employers. Across all industries, 9.5 percent of workers aged 16 to 64 had a substance abuse problem, according to the Substance Abuse and Mental Health Services Administration.

The report also shows that heavy drinking is common among the industry’s employees, with one in 10 engaging in heavy alcohol consumption.

Sexual Harassment
14.23% of all sexual harassment charges come from the food and hospitality industries (Source: The Center for American Progress and the U.S. Equal Employment Opportunity Commission).

Workplace Violence
Christian Waeldner, writing for Insurance Business America, states in his article “Addressing Risks Created by Workplace Violence in the Hospitality Sector,” that the National Safety Council’s Injury Facts data for workplace violence-related deaths and injuries resulting in days off work across various occupations put the leisure and hospitality industry second only to retail with 2,380 injuries and 107 deaths per year.

Theft
Additionally, hotels and restaurants present numerous opportunities for theft and identity theft from guests and the house. Employees have access to rooms, credit card numbers, and other personal information from guests.

Loss of Revenue and Reputation
These crimes can result in loss of cash, loss of reputation, higher turnover of employees, injury, even lawsuits. All of this information points to the necessity of a professional background check of employees before hiring to prevent undesirable consequences. It is a small price to pay to prevent a potentially huge cost.

Restaurant Hospitality, in their article “Background checks: what you need to know” by William J. Lynott, features recommendations by David Roth, labor law specialist at Fisher Phillips in Denver:

“The benefits of conducting a background check for hotel positions include:

• Protecting employees and guests from violence
• Reducing the threat of employee theft
• Providing a positive experience for guests
• Increasing repeat business
• Reducing the risk of negligent hiring
• Discouraging dishonest applicants from applying
• Reducing costs of training and turnover
• Avoiding employee attendance problems
• Dealing with dishonesty on the job
• An increased ability to ensure quality employees
• A clean background check may indicate that an applicant is trustworthy, reliable and responsible and may help predict job performance
• Pre-employment background checks often discourage applications by individuals who are trying to hide something
• May increase an employer’s ability to provide a safe workplace, and may decrease instances of workplace violence
• May increase an employer’s ability to minimize theft losses as a result of employee dishonesty
• May increase an employer’s ability to avoid negative publicity should an employee’s actions or history become public.”

Be Safe, Not Sorry
The Hire Authority can design a customized, affordable program for investigating and verifying information about new employees, so you can hire with confidence. After all, the smartest way to avoid trouble is not to hire that bad egg in the first place. If you are interested in an employment screening company, we’d be happy to answer all of your questions and give you a quote. Call (508) 230-5901 or visit our website www.hireauth.com.

The foregoing should not be construed as legal advice. Employers should always consult their own legal counsel for advice on labor and employment matters.