As a hiring manager, you want to ensure you interview and employ the best workers possible. Naturally, you spend plenty of time reading resumes, contacting candidates, and performing thorough interviews. However, what you might not realize is that you sometimes need to perform a credit check on potential employees. Check out this quick guide to help you decide when to do so.
Job Positions That Benefit From Credit Checks
Employee credit checks are most common when a company is hiring someone who will directly deal with either the company’s finances or the clients’ finances. This may include people who work in upper management, call center representatives for banks and credit card companies, accountants, and more. Some employers even perform credit checks on the store clerks who run the cash registers.
What To Look For
When it comes to what to look for when performing a credit check on potential employees, it is really up to you. Most hiring managers first look for current or past bankruptcies as well as consider how many delinquent accounts the potential employee has. More scrupulous employees may also consider how much the person owes on mortgages or in student loans. Keep in mind that a credit report won’t always tell the whole story, though. If the candidate looks good otherwise, feel free to interview them to find out more information.
Make Sure It’s Legal
Before you spend money on a credit check services for employers, make sure you can legally look into your employees’ credit histories. Some cities and states don’t allow you to do so at all. In the ones that do, you must follow a protocol. This includes getting written approval to do the credit check from the potential employee, not looking further back than 10 years into the history, and providing the employee with a copy of the report you receive if he or she requests it.
While it is important to research a potential employee’s credit history if he or she will deal with any of your company’s financial information, keep in mind that poor credit doesn’t necessarily need to be a deal breaker. Remember to go with your gut feeling and to look at other important factors when choosing your new employees.