If you are looking for ways to streamline the hiring process, using an employee credit check is one way you can make your job much easier. Within the last few years, employers have begun using credit reports as a way to collect vital information on new hires and to double-check the information that is shared on job applications and during interviews. Keep reading to learn about how to use this important tool.
Things To Consider
The most important thing to remember about using a credit check during the hiring process is that you will need permission from the applicant to perform the credit check. It is required by law that you inform the individual that you wish to perform the credit check and that you receive recorded permission to do so. If you, as the employer fail to do this, you could be held liable. The applicant has a right to be informed and has a right to decline the credit check.
You should keep in mind, though, if an applicant declines the credit check, that could in itself be a red flag. Why does the applicant not want a credit check ran?
One of the main ways employers use the credit check today is to confirm an individual’s residency. If there is contradicting information between the application, the interview, and the credit check, you should pay close attention. Lying about residency is a definite red flag. The credit check will also reveal if an individual is a US citizen or not. The credit report is an official report which cannot be faked. The credit report will also track an individual for many years, thus making it a great tool to double-check the information.
Confirming the identity of a potential employee is very important. If a person is lying about their identity it is an absolute deal-breaker. Identity discrepancies are almost always a sign of illegal activity. The credit report will help you discover criminal activity before it may show up on a criminal background check.
Keep in mind the criminal background check will only show you information concerning illegal activity in the past. Illegal activity which is going on presently will not show up on that report. However, if you pay close attention, you may be able to detect illegal activity by simply reviewing the credit report.
If any contradicting information shows up on the credit report, do not ignore it. These are very important pieces of information. You want to fill your team with honest people. Use the credit report to double-check an applicant’s honesty.
There is a great deal of financial information available on the credit report. This information can be very helpful in determining if your candidate is qualified for the position you are considering them for. If the position involves handling money, then the credit report becomes very relevant. You want to hire individuals who are capable of handling money wisely and honestly. If the credit report reveals that the individual cannot even handle their own money well, how can you expect them to handle company money well? These are very important considerations.
Another important thing to consider is whether or not the credit report reveals that the individual is in financial distress. Financial distress can lead to a whole host of bad decision-making. Even if a candidate has a great background and has never been involved in illegal activity, distress could indicate future bad decisions are on the horizon. You want your team filled with honest, stable individuals.
You can use the credit check to establish residency, identity, and financial stability in the applicants you consider for your team.