Credit Checks Should Never Be Used For Making Employment Decisions
By Nick at 24 November, 2006, 8:19 pm
A post on Spherion’s Career Blog about credit checks reminded me of something that I want to get off my chest. Â
Don Boone of Spherion writes, Having been in the recruiting field for many years, I can’t tell you the number of times I encountered a perfectly qualified, professional and competent candidate for my open position only to have them kicked out of the running because of their credit history. Then, one of two things happens. The candidate is either completely surprised by the result of their credit check or with a mix of anger and desperation, they beg for advice on how to get around their poor credit.
I feel that business owners need to be educated on what should be used in making employment decisions. The biggest thing to remember are two little words: job related.Â
I have owned a business, have recruited employees for my business, and now research HR issues. One thing is for certain. Credit checks should NOT be used in employment decisions.
You stated the number of times that you have encountered a perfectly qualified, professional and competent candidate for your open position only to have them kicked out of the running because of their credit history. You are supposed to select candidates based on “job related criteria.†Credit history is NOT job related.
I have never used it in my past businesses, and I would NEVER use it in making ANY employment decisions. One of the first things that you learn in a class on Human Resources is that employment decisions must be based on job related criteria. Employment decisions must be based on whether the person can perform the job. What does a person’s credit history have to do it that?
Recently, I have followed the discussion at the Spherion Career Blog about the use of credit checks in employment decisions. There was a comment made on that post that I want to share with you. This person really hit it on the head that credit checks should not be used in making employment decisions.
I have to agree with you Nick on all sides of your postings. Credit Checks are not something that should be used to analyze a potential employee, its seems to me that this is a very fine line along discrimination. I will use my own personal case for example here. We moved to Va and my husband was told he needed a new liver in order to survive. Well while we were waiting on social security to render their verdict, we still had medical bills along with all the other bills, the medical though was even tougher because of no insurance. Needless to say that has all effected my credit, and furthermore anytime, someone runs a credit check on you, it causes your score to fall even more ( a hard lesson learned here). So all the 10+ jobs I have applied for had just caused my credit rating to be worse than it was before the 1st started digging in it. I am a manager, I had to take all the tests to get there, but yet employers still insist on running a credit report. This is outrageous. I am now being considered a irresponsible person because my husband is dying, I need a better paying job and I am in debt? The person who came up with this idea of checking a persons credit to see if they qualify for a job, really had to much time on their hands, and I would love to see what their report looks like. Further more, try telling the unemployment office that you have tried to get a job but because potential employers keep checking your credit that its just impossible, I am almost postive that one will go over like a lead ballon.This checking a persons credit should be abolished, for crying out loud, life happens and it happens to all of us, just another thing in life that does not discrminate,why should employers?  Â
Posted by Dana on October 2, 2006 10:37 PM
Here is a reminder to all business owners and Human Resources Managers. All employment decisions MUST be based on JOB RELATED criteria.
Related Link: Free credit score is availible from SpendOnLife.com and offers free information on credit scores, credit reports, and more.
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