Talk about pre-employment screening and the use of credit reports has stirred up much controversy. Some states have prohibited employers from running credit reports on prospective employment candidates unless there is a direct relation between the employment position and the reason for the credit report. If the employment applicant is working in finance, for example, it would be okay to run the credit report. But if the person was part of the customer service group, probably not.
Some of it is murky. What about the non-financial employees who have access to proprietary data, client credit cards, company funds? What about those working in inventory who may skim merchandise for sale out the back door? All reasonable questions with no real answers. Eric Sandberg, on the Fox Business website writes, 6 Myths ABout Credit Report Checks By Employers. In her article, Sandberg sets them up and knocks them down.
So before the rhetoric heats up too much about how it’s the employment credit reports that discriminate and keep qualified people form finding work, this is an article worth reading.
Here is the link to 6 Myths About Credit Report Checks By Employers.
There is the belief that the employment credit reports, serving as background checks, discriminate. They discriminate because those who had a rough time during the economic downturn will find their credit diminished and will therefor find it that much harder to get a job. There is the belief that since those in ethnic minorities often have worse credit than others, they too will suffer finding work.
The fact is that the myth of the abuse of credit reports for employment screening is just that, a myth. The fact is that only 13% of all employers pull credit reports on all employment candidates. There are other myths, about how bad credit is regards, whether is truly hurts your job prospects, and whether it further diminishes your credit.
Erica Sandberg, for the Fox Business News Website, posted a well thought out article entitled, 6 Myths About Credit Report Checks By Employers. It is well worth reading. For those who believe background checks and employment credit reports may be the main reason they are not finding work, they should definitely read the article. Recruiters and human resources managers should also read it. Well worth it for the information.
