Credit Checks On New Hires Declines

Fewer employers are conducting credit checks on job candidates than two years ago, according to a recent survey by the Society for Human Resource Management. Fifty-three percent of firms say they do not use credit reports in their hiring process, up from two years ago, when only 40% did not use reports. “Employers are paying additional attention to the way credit reports are used,” relates Mike Aitken, SHRM vice president for government affairs. One reason firms tread carefully with reports (credit reports provide a detailed payment history, not a single numerical credit “score”) is that eight states now have laws restricting how a job applicant’s bill-paying habits can be considered, and many other states have considered enacting rules.

Read more

Posted Under: Credit Checks

Post By (955 Posts)