There is a discussion going on in LinkedIn regarding the "latest" trend in private service hiring practices of using Credit Reports as one measure of a potential employee. I thought I would weigh in.
As a recent convert to "Private Service", I can assure you that the practice of checking credit reports, not just credit scores, has been a criteria for employment in the corporate world for well over a decade. I do not believe anyone is suggesting that a credit report should be the lone measure of a person's moral and ethical compass. It is one more tool for the proper vetting of a potential hire. The exceptionally devious will slip through; not to be too glib, that is why they are exceptional.
The irony here is, Private Service staff take a full background check as an acceptable cost for gaining employment. Most employees in the corporate world would never tolerate a potential employer doing a back ground check on a them (though that seems to be a trend moving from here to there.) A background check is what is normally considered a gross breach of privacy.
Title by: FreeCreditReportBand
3 comments:
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When people are looking for work, a bad credit report should not be a concern. Obviously, if a person is having trouble finding work, they may not be able to pay their bills on time. This is quite unfortunate, but it doesn't make that person a "bad employee". As of recently, I thought doing a credit report on prospective employees was against the law. The only way to get that credit back on a good standing is to "get employed" so bills can be paid.
@ Marta - Thank you for dropping in. I am humbled and flattered.
As a person with less than stellar credit, I completely sympathize with potential candidates that are faced with this.
You are correct, also, that a potential employer cannot use a credit report as a reason to refuse employment.
I am suggesting that a credit report is an additional tool for making hiring decisions along with reference checks, background checks and prior employer checks, resumes/CVs and interviews.
Several years of credit problems could show money management issues, health issues or just plain giving too much to their favorite charity. The information, however, does provide additional talking points during subsequent interviews. In addition, the beginning of job related credit problems can easily be corroborated against the candidate's resume or CV.
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