National Retailer Employee Investigation Case Study

This case study follows a national retailer that launched investigations at locations with high loss rates and behavioral risks (workplace violence, code-of-conduct violations). They chose Verensics to collect human intelligence, gathering and analyzing disclosures from hundreds of employees, and close cases ~70% faster. Associates at each location received a survey link via work email. The link was open for eight business days, and responses were visible to investigators in real time. The company identified associates of high interest for face-to-face interviews and connected findings to common retail loss drivers, including inventory shrink (including ORC), inventory-reporting integrity, discount/refund abuse, and safety. Cases that previously took four to six months were closed within weeks.

National Retailer Employee Investigation Case Study

This report summarizes data gathered by the Verensics platform during internal employee investigations at a national retailer (anonymized). In addition to the original focus on behavioral risk categories, the analysis connects findings to enterprise loss drivers common across retail (i.e., inventory shrink (including ORC), inventory-reporting integrity, discount/refund abuse, and store/DC safety) so leaders can tie cultural indicators to financial impact.

The information was collected in Q1 2025 across Distribution Centers and Stores from respondents with high consistency scores (employees whose answers reflect high reliability). To help practitioners act quickly, metrics are framed to support near-term controls (e.g., cycle-count rigor, returns governance, receipt-to-shelf custody) and people-based mitigations (manager coaching, targeted refresher training, and anonymous escalation pathways) that are practical to roll out.

The purpose is to synthesize behavioral patterns that influence internal compliance and shrink outcomes, such as attitudes toward theft, willingness to report, observation of suspicious activity, and tolerance for policy exceptions. This allows operators to prioritize the handful of interventions most likely to reduce loss (e.g., tighten exception approvals, focus audits on high-risk categories, and reinforce consequence management).

Effective risk management starts with clarity on vulnerabilities. This analysis highlights where controls may be eroding (inventory counts, refunds/credits, vendor interactions) and where safety risks can escalate, informing policy updates, micro-trainings embedded in shift huddles, and lightweight monitoring (spot checks, exception dashboards). In essence, this data contributes to an awareness and reduction in total loss strategies. The aim is practical: better culture signals, fewer preventable losses, and a safer workplace, without asking teams to rewrite how they work.

Total Investigations Opened: 7

Distribution Centers: 2 (423 Questionnaires Completed)

West Coast DC – 228 Questionnaires

East Coast DC – 195 Questionnaires

Stores: 5 (557 Questionnaires Completed)

DC Metro – 109 Questionnaires

NYC – 121 Questionnaires

Miami – 95 Questionnaires

Chicago – 113 Questionnaires

Wilmington – 119 Questionnaires

Completion %

1260 questionaries sent

980 questionnaires completed

78% completion rate

Investigation Behavioral Categories

The Distribution Center department has distinct categories compared to Stores, and below you can see a list for each one of them.

Employee Theft (Emphasized)
Violence in the Workplace
Logistics Centers Code of Conduct
Reporting Inventory
Unethical Relationships with Suppliers/Vendors (DC’s Only)
Discount/Credit Fraud (Stores Only)

Investigation Completion Rate

Based on the complete questionnaires to date, the organization has an average completion rate of 78%. The following section provides details of the complete questionnaires by division and stores.

Distribution Center	Completion %	TOTAL DC %	Combined %
West Coast DC	78%	80.5%	78%
East Coast DC	83%	80.5%
Stores	Completion %	TOTAL STORES %
DC Metro	68%	75.6%
NYC	74%
Miami	72%
Chicago	81%
Wilmington	83%

Distribution Center’s Investigation Analysis (DC’S)

This analysis covers the Distribution Center investigation results collected for Q1 2025. The table below focuses on interview results by the number of employees.

# Created	# Completed	# Never Started	# Declined	# Contact Me	# Admissions	# Observations	# Admissions Observations	No findings
582	423	144	15	28	187	154	77	67

Stores Investigation Analysis (STORES)

This analysis covers the Stores investigation results collected for Q1 2025. The table below focuses on interview results by the number of employees.

# Created	# Completed	# Never Started	# Declined	# Contact Me	# Admissions	# Observations	# Admissions Observations	No findings
678	557	98	23	35	293	215	92	26

# Interviews: Total number of interviews created.
# Completed: Number of interviews fully completed.
# Never Started: Number of interviews that were not initiated.
# Declined: Number of employees who declined interview.
# Contact Me: Number of employees who requested follow-up contact.
# Admissions: Number of employees who admitted to certain behavior or misconduct.
# Observations: Number of reported observations about coworkers.
# Admissions & Observations: Number of reported observations and admissions of an employee.
# No Findings: Number of interviews with no significant findings.

Behavioral Findings Highlights – DC’s

This section presents top findings from all categories selected by the regional grocer as part of its Distribution Center investigation.

Please note that the findings indicate that a single employee admitted to multiple questions within a specific category, which could significantly influence the high percentage displayed above each table reflecting the percentage of all interviewees.

1. Employee Theft

This category was presented to both Distribution Centers (West Coast/East Coast). The results represent a combination of all responses.

Involvement

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ personal involvement in workplace theft. Below are some of the top questions that raise concern.

327 responses were given by 202 employees, which is 47.8% of all interviewees.

Question	Response	#
Are you worried that interviews with your colleagues will reveal your involvement in workplace theft?	YES	102
Have you ever been involved with or traded in stolen merchandise from this company?	YES	89
Since you started working here have you stolen from this organization?	YES	51
Have you stolen from this organization in the last two months?	YES	13

Attitude

This table highlights the most frequent and concerning responses from completed questionnaires regarding employees’ attitudes toward workplace theft. Below are some of the top questions that raise concern.

439 responses were given by 229 employees, which is 54.1% of all interviewees.

Question	Response	#
Employees should receive benefits or awards for not stealing.	AGREE	116
Do you agree that borrowing an item without permission is considered stealing?	NO	98
Stealing defective merchandise that is about to be thrown away is wrong.	DISAGREE	54
It is wrong to cover up for a friend who steals company property.	DISAGREE	21

Reporting

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unwillingness to report workplace theft. Below are some of the top questions that raise concern.

301 responses were given by 157 employees, which is 37.1% of all interviewees.

Question	Response	#
If you knew for certain that a coworker was stealing another coworker’s equipment would you report them?	NO	123
If you know for certain that a manager is stealing from work will you report it?	NO	121
If you saw a colleague stealing from work is it your responsibility to report it?	NO	57

Observation

This table summarizes the most commonly observed workplace theft activities that employees reported during the questionnaire. Below are some key findings.

406 responses were given by 124 employees, which is 29.3% of all interviewees.

Question	Response	#
Do you know of a coworker who is stealing company goods?	YES	97
Do you know of any coworkers who have obtained company goods illegally?	YES	73
Do you know of any supervisors who have taken defective company goods that were supposed to be disposed?	YES	57
Do you know of any colleagues who give company goods to relatives or customers without charging for it?	YES	34
Do you suspect any coworkers of selling company goods on the side?	YES	25

2. Violence in the Workplace

This category was presented to both Distribution Centers (West Coast/East Coast). The results represent a combination of all responses.

Involvement

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ direct involvement in violent behavior or expressed their potential for engaging in such behavior. Below are some of the top questions that raise concern.

134 responses were given by 50 employees, which is 11.8% of all interviewees.

Question	Response	#
Since you started working here have you been involved in a workplace violence incident?	YES	43
Since you started working here did you ever consider hitting a coworker who angered you?	YES	34
If you believed you were wrongly fired from this job would you damage workplace property when leaving?	YES	19
Have you ever planned to hurt people at work and changed your mind?	YES	16
Have you hit a coworker?	YES	13
Have you shoved or pushed a coworker?	YES	9

Attitude

This table highlights the most frequent and concerning responses from completed questionnaires regarding employees’ attitudes toward workplace violence. Below are some of the top questions that raise concern.

101 responses were given by 58 employees, which is 13.7% of all interviewees.

Question	Response	#
Do you think workplace violence is a serious issue?	NO	43
It is unacceptable to make a threatening phone call even if you were wrongly fired.	DISAGREE	31
It is wrong to throw something at a coworker in anger.	DISAGREE	18
Even if you were wrongly fired there is never a good reason to get revenge.	DISAGREE	9

Reporting

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unwillingness to report workplace violence. Below are some of the top questions that raise concern.

42 responses were given by 26 employees, which is 6.1% of all interviewees.

Question	Response	#
If you knew a colleague was planning to commit an act of violence in the workplace would you report it?	NO	26

Observation

This table summarizes the most commonly observed workplace violence activities that employees reported during the questionnaire. Below are some key findings.

89 responses were given by 60 employees, which is 14.2% of all interviewees.

Question	Response	#
Since you started working here have you noticed any coworkers acting violently at work?	YES	37
Do you strongly believe that one of your coworkers will do something extreme if they lost their job?	YES	27
Do you know of a coworker who has made threats against any colleagues or their supervisor?	YES	13
Has a coworker/manager ever threatened you or assaulted you?	YES	7

3. Logistics Centers Code of Conduct

This category was presented to both Distribution Centers (West Coast/East Coast). The results represent a combination of all responses.

Involvement

This table highlights the most frequent and concerning responses from completed questionnaires, specifically related to employees’ improper handling of inventory procedures, including inventory inflation. Below are some of the top questions that raise concern.

192 responses were given by 89 employees, which is 21% of all interviewees.

Question	Response	#
Are the inventory procedures that you participate in always performed properly?	NO	79
Have you ever participated in inflating inventory before it was reconciled?	YES	59
Do you happen to violate warehouse rules from time to time?	YES	36
Do you currently have any conflicts of interest with your position?	YES	16

Attitude

This table highlights the most frequent and concerning responses from completed questionnaires regarding employees’ attitudes toward inventory integrity and professional conduct. Below are some of the top questions that raise concern.

189 responses were given by 48 employees, which is 11.3% of all interviewees.

Question	Response	#
Is inflating inventory a way to cover up a theft?	NO	45
Does it seem reasonable for your supervisor to ask you to inaccurately report inventory?	YES	40
Accepting an expensive gift from a supplier is wrong.	DISAGREE	34
It is never OK to receive merchandise without documenting the amount according to procedures.	DISAGREE	10

Reporting

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unwillingness to report improperly handling inventory procedures, including inflating inventory. Below are some of the top questions that raise concern.

305 responses were given by 141 employees, which is 33.3% of all interviewees.

Questions	Response	#
If your supervisor asked you to inaccurately report inventory would you report them?	NO	128
Would you report a colleague who received an expensive gift from a supplier?	NO	119
If your manager asked you to inaccurately count inventory would you report them?	NO	46
If you know for certain that a warehouse employee has conspired with a customer or supplier will you report it?	NO	12

Observation

This table summarizes the most commonly reported observations of coworkers improperly handling inventory procedures, as noted by employees in the questionnaire. Below are some key findings.

324 responses were given by 146 employees, which is 35% of all interviewees.

Question	Response	#
Do you know of a supervisor who received merchandise without following company procedures?	YES	137
Do you know of a coworker/manager who currently has a conflict of interest with their position?	YES	123
Do you know for certain that a manager has inflated inventory before reconciling?	YES	52
Do you know for certain that a coworker has inflated inventory before reconciling?	YES	12

4. Reporting Inventory

This category was presented to both Distribution Centers (West Coast/East Coast). The results represent a combination of all responses.

Involvement

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ involvement in inventory misreporting. Below are some of the top questions that raise concern.

224 responses were given by 89 employees, which is 21% of all interviewees.

Question	Response	#
Have you ever participated in inflating inventory before it was reconciled?	YES	71
Are the inventory procedures that you participate in always performed properly?	NO	59
Have you ever incorrectly reported inventory?	YES	12

Attitude

This table highlights the most frequent and concerning responses from completed questionnaires regarding employees’ attitudes toward reporting inventory procedures. Below are some of the top questions that raise concern.

167 responses were given by 78 employees, which is 18.4% of all interviewees.

Question	Response	#
Is inflating inventory a way to cover up a theft?	NO	69
Does it seem reasonable for your supervisor to ask you to inaccurately report inventory?	YES	45
Inventory procedures performed improperly can lead to theft.	DISAGREE	18
In your opinion is it ok to inflate inventory before reconciling?	YES	5

Reporting

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unwillingness to report inaccurate inventory practices. Below are some of the top questions that raise concern.

144 responses were given by 84 employees, which is 19.9% of all interviewees.

Question	Response	#
If your supervisor asked you to inaccurately report inventory would you report them?	NO	78
If your manager asked you to inaccurately count inventory would you report them?	NO	46

Observation

This table summarizes the most frequently reported activities related to inventory falsification, as disclosed by employees in the questionnaire. Below are some key findings.

158 responses were given by 57 employees, which is 13.5% of all interviewees.

Question	Response	#
Do you know for certain that a manager has inflated inventory before reconciling?	YES	31
Do you know for certain that a coworker has inflated inventory before reconciling?	YES	24

Verensics Insights – Reporting Inventory at DCs:

We discovered that some employees think inaccurate reporting is acceptable, some admitted inflating counts, and coworkers named managers who push numbers up. Since people said managers were involved and others are hesitant to report them, employees should have more options to report tips. Before fixing inventory in the system, leaders should also consider other forms of authentication, like a quick photo and a second person to confirm the count.

5. Unethical Relationships with Suppliers / Vendors

This category was presented to both Distribution Centers (West Coast/East Coast). The results represent a combination of all responses.

Involvement

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unethical relationships with vendors/suppliers. Below are some of the top questions that raise concern.

120 responses were given by 56 employees, which is 13.2% of all interviewees.

Question	Response	#
Have you ever participated in inflating inventory before it was reconciled?	YES	52
Are the inventory procedures that you participate in always performed properly?	NO	29
Have you ever incorrectly reported inventory?	YES	12

Attitude

This table highlights the most frequent and concerning responses from completed questionnaires regarding employees’ attitudes toward unethical relationships with vendors/suppliers. Below are some of the top questions that raise concern.

67 responses were given by 49 employees, which is 11.6% of all interviewees.

Question	Response	#
Is inflating inventory a way to cover up a theft?	NO	19
Does it seem reasonable for your supervisor to ask you to inaccurately report inventory?	YES	15
Inventory procedures performed improperly can lead to theft.	DISAGREE	10
In your opinion is it ok to inflate inventory before reconciling?	YES	5

Reporting

This table highlights the most frequent and concerning responses from completed questionnaires related to employees’ unwillingness to report unethical relationships with vendors. Below are some of the top questions that raise concern.

44 responses were given by 27 employees, which is 6.4% of all interviewees.

Question	Response	#
If your supervisor asked you to inaccurately report inventory would you report them?	NO	27
If your manager asked you to inaccurately count inventory would you report them?	NO	16

Observation

This table summarizes the most commonly observed incidents of coworkers engaging in unethical relationships with vendors, as reported by employees in the questionnaire. Below are some key findings.

14 responses were given by 14 employees, which is 3.3% of all interviewees.

Question	Response	#
Do you know for certain that a manager has inflated inventory before reconciling?	YES	12
Do you know for certain that a coworker has inflated inventory before reconciling?	YES	2

END DC REVIEW

Store Investigations

Behavioral Findings Highlights – STORES

This section presents top findings from all categories selected by the regional grocer as part of Store investigations: DC Metro, NYC, Miami, Chicago, Wilmington.