The Fair Credit Reporting Act, or the FCRA, is a hefty concern for a human resources department. The regulations protect your potential hires, as well as your coworkers, and yourself when you’re searching for jobs, but even accidental infringement can be a costly mistake. No matter how well you and your department know the document, as well as related state laws, it can be tricky to make sure you’re using credit report information the right way and to everyone’s benefit.
What’s the best way to make sure things are being handled properly across the board?
Automate Your Credit Report Procedures in the Hiring Process
The best way to avoid one-off mistakes is to automate everything and remove manual steps. A background and credit report tool that integrates with your onboarding can help you:
Record Your Decisions
If you or someone in your department has due cause to turn down a potential employee because of information that falls under the domain of FCRA, document everything. An integrated tool makes sure the decision-making process doesn’t get lost. Record the reason right in the applicant’s file and reference specific lines of the document.
Organize Signed Authorizations and Disclosures
There’s a lot of paperwork even before you pick a final hiree and start onboarding. Make sure everything stays in place with an interface built for it. A specific background checking tool can easily hold onto signed disclosures and even prompt users if they’re moving forward without proper documentation.
Preset Conditions for Requesting the Report
You don’t need a credit report for every applicant. Instead of having your team make that choice on a case-by-case basis, preset which ‘category’ or ‘type’ of job would require that information. When it comes to PII and liability, it’s better to not have information if you don’t need it.
Go to TruDiligence for a background checking tool that helps you stay organized.