I get that for some positions and career tracks a financial background check should be done. Careers in financial services, senior executives who deal with budgets, banks and most of their staff regardless if they touch the cash. Sure there are more to list.
But I wonder if a credit check is needed for someone developing logistics software. Or how about a PR Director. I doubt for a Recruiter or HR professional and yet they are the ones involved in this process.
That’s what I think anyway.
I have seen studies that show there is no correlation between credit score and job performance. I am guessing though there are others show some proof that bad scores and fraud cases correlate.
Let me get to the here and now, with what has happened to millions of people who have been hit hard in this economy, will this be held against them?
It seems that companies continue to put in place these barriers, walls and policies to make it even more easy to exclude one from the employment process. Clearly this has been an issue I have shouted against for years. Like we do not already make it near impossible for people to get a job.
In this article from SHRM (Society of Human Resource Management) Maryland, Other States Weigh Limits on Credit Checks for Employment some states are trying to limit this practice.
The article gives some stats from a 2009 SHRM survey showing:
While the full report has not yet been released, she noted, the SHRM survey found that 47 percent of respondents limit their use of credit background checks to job candidates for certain types of positions, 40 percent do not conduct this type of background check on any job candidates, and 13 percent conduct credit checks on all candidates.
And this Tennessean.com article about how it is impacting job seekers right now Credit checks choke job hunters' efforts.
What do you think, is this needed? Maybe for some jobs and not others? Should companies be allowed to decide or should legislation?
Here is the conversation from CNBC yesterday as “both sides” gave their pitch: