Every employer desires to hire the best candidate from the list of potential applicants in their hands. Achieving this goal calls for a rigorous process which seeks to examine various facets of a particular employee. One of the main approaches that prospective employers use is the screening of applicants using their credit reports.
It is a strategy that will give interviewers more information beyond face to face interactions with those they are planning to hire. Here is what you can expect if you opt to use this approach in finding potential recruits:
Access To Details On The Strength And Credit Worthiness Of Candidates
Most if not all employers are a bit skeptical about hiring individuals whose financial standing shows some weakness. That includes dormant accounts, bank accounts operating with merger funds, and a track record indicating the failure to service financial obligations on time. All these details are available on a prospective employee’s credit report.
Such a report is a useful screening tool for employers who are trying to find more information about a particular individual before hiring them. It protects them from the risks of hiring incompetent staff.
Getting Consent Is Key
It is prudent to note that you cannot scrutinize a particular individual using their credit report without their consent. Therefore, notifying them before you do so is a requirement by the law. In turn, they need to give their permission through a written document. Consequently, both parties stand to benefit and lose in equal measure.
The reason is that a candidate who fails to give consent will prevent exposure of their credit report details to the public, which will protect their privacy. On the other hand, employers may miss an opportunity to hire qualified individuals if they withhold their credit details. That leaves them no choice but to settle for less qualified or incompetent staff altogether.
Observing Laws That Control The Use Of Credit Reports Is Mandatory
Employers who have no insight on the laws affecting the use of credit reports to screen potential employees within their locality may find themselves on the wrong side of the law. For instance, some states prohibit the use of this approach when hiring. They restrict the use of these reports to such professions as law enforcement, managerial roles, as well as to those seeking job opportunities at the state department of justice.
Contact TruDiligence With Your Background Check Needs
If you need more details on the use of credit reports in employment screening, contact us today! We believe your experience with TruDiligence will be far superior to other applicant screening providers as our commitment to true diligence is far more than a business name – it is our mission.