A survey from the Society for Human Resource Management (SHRM) “Background Checking — The Use of Credit Background Checks in Hiring Decisions” indicates that more than half of the responding organizations – 53 percent – do not conduct credit background checks on any of their job candidates, a noticeable increase from 40 percent in 2010 and from 39 percent in 2004. The survey of randomly selected HR professionals from SHRM’s membership is available at: http://www.shrm.org/Research/SurveyFindings/Articles/Pages/CreditBackgroundChecks.aspx.
Key findings of the SHRM survey of released in July 2012 include:
- While 53 percent of organizations did not conduct credit background checks on any job applicants, 34 percent did conduct them for select job candidates and 13 percent conducted them on all candidates.
- Of the organizations that did conduct credit background checks, 58 percent initiate a credit background check after a contingent job offer while 33 percent initiate them after a job interview. Only 2 percent initiate credit background checks before a job interview.
- As to why organizations conduct credit background checks, 45 percent conduct credit background checks to reduce/prevent theft and embezzlement while 22 percent said it was to reduce legal liability for negligent hiring.
- Of the organizations that conduct credit background checks, 80 percent reported that they have hired a job candidate with a credit report containing information that reflected negatively on his or her financial situation while 64 percent allow job candidates to explain the results of the credit checks before the decision to hire or not to hire is made.
- Of the organizations that conduct credit background checks, 87 percent conduct credit background checks on job candidates applying for positions with financial responsibilities, 42 percent on candidates applying for senior executive positions, and 34 percent for positions with access to highly confidential employee information.
In addition, the survey also found the three most important factors that influence the final decision to hire a particular candidate over another are previous work experience, a good fit with the job and the organization, and specific expertise needed for the job.
As previously reported on the ESR News blog, a 2010 survey from SHRM found that 40 percent of organizations did not conduct credit background checks on any job applicants, 47 percent did conduct them for select job candidates and 13 percent conducted them on all candidates.
For information about background checks, visit Employment Screening Resources (ESR) – ‘The Background Check Authority’ and nationwide background screening firm accredited by the National Association of Professional Background Screeners (NAPBS®) – at http://www.esrcheck.com/, call 415.898.0044, or email firstname.lastname@example.org.
About Employment Screening Resources (ESR):
Employment Screening Resources (ESR) – ‘The Background Check AuthoritySM’– provides accurate and actionable information, empowering employers to make informed safe hiring decisions for the benefit for our clients, their employees, and the public. ESR literally wrote the book on background screening with “The Safe Hiring Manual” by Founder and CEO Lester Rosen. ESR is accredited by The National Association of Professional Background Screeners (NAPBS), a distinction held by a small percentage of screening firms. By choosing an accredited screening firm like ESR, employers know they have selected an agency that meets the highest industry standards. For more information about Employment Screening Resources (ESR), visit http://www.esrcheck.com/, call 415.898.0044 or 888.999.4474 (Toll Free), or email email@example.com.
About ESR News:
The Employment Screening Resources (ESR) News blog – ESR News – provides employment screening information for employers, recruiters, and jobseekers on a variety of topics including credit reports, criminal records, data privacy, discrimination, E-Verify, jobs reports, legal updates, negligent hiring, workplace violence, and use of search engines and social network sites for background checks. For more information about ESR News or to send comments or questions, please email ESR News Editor Thomas Ahearn at firstname.lastname@example.org.