Background Checking-The Use of Credit Background Checks in Hiring Decisions


A recent survey indicated that slightly more than one-half (53%) of organizations do not conduct credit background checks on any of their job candidates, an increase from 40% in 2010. The leading reasons organizations conduct credit checks on job candidates are to decrease/prevent theft and embezzlement (45%) and to reduce legal liability for negligent hiring (22%). Of the organizations that conduct credit background checks, 80% reported that they have hired a job candidate whose credit report contained information that reflected negatively on his or her financial situation. 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.