Many factors must go into choosing a new employee to fill a role in your company. Knowing how to screen for many different types of character traits and behaviors is essential to choosing the right person for the job. Among the many ways, you can evaluate a potential new employee is the employment credit check. If you’re hiring for positions where the employee will have significant responsibility for managing money, or you’re in an industry such as banking or finance, keep reading to find out what you need to know about conducting an employment credit check and how it can help you during the hiring process.
Why Perform An Employment Credit Check?
The employment credit check is one way you can better understand a potential employee. An individual’s credit report can tell you a lot about them and how they handle responsibilities. A credit report may reveal details that could have an impact on how an employee handles certain job roles. A credit report may also reveal if a potential employee has been involved in questionable financial activities. One thing many employers are looking for when checking a credit report is trustworthiness and dependability.
Cut Down On Risks
If you are looking for potential employees for financial positions, it is of utmost importance that you thoroughly understand how they interact with money. Their own personal credit report will show you how they interact with their own finances. This can be very enlightening. If you discover that individual struggles with managing their own money, it could be a good indicator that they are not qualified to handle company money as well.
How an individual handles their finances can also be an indicator of how they handle responsibilities of all kinds. Financial behaviors are highly indicative of certain personality traits. Someone who is incapable of handling their finances, may not be capable of handling other company responsibilities.
Another way the credit check can be used is to gauge trustworthiness. Someone who has repeatedly broken financial obligations may have an issue with keeping their word. This could affect their ability to perform certain tasks at work in an honest and dependable way.
Evaluating Personal Financial Situation
Evaluating an employee’s personal financial situation can also help you to better gauge their stability. Oftentimes someone with a very chaotic financial life will have certain chaotic personality traits which could make them difficult to work with.
In some cases, you will be able to verify employment history also on a credit report. This can be very helpful in verifying if the potential employee is being honest concerning all information they are sharing on their applications and resume. If a potential employee is being dishonest you will want to know as soon as possible to avoid future issues.
It can be tempting during the hiring process to cut corners in order to save money or time. Cutting corners however could result in placing the wrong person in your company. In the long run, this can cost you a lot of money and stress.
Not only can an unqualified employee slow down productivity, but depending on their past behavior and activities, an unqualified employee could even cause problems legally for you. Conducting thorough background checks for both criminal activity and financial activity is the best way to ensure that you are getting the best possible candidates for your company.