CLEVELAND, OH / April 15, 2010 — While 50 percent of employers use credit reports in the hiring process, many have been accused of using them to unfairly deny people work.
HR departments are coming under greater scrutiny in the current economy, as those financially damaged by the recession apply for work to repay their debts. Legislators are listening to these concerns and some states are passing or proposing legislation around the use of credit histories. As a result, HR professionals need a process to determine when credit checks are relevant to the job, states a new article from EmployeeScreenIQ, a global leader in the employment background screening industry.
The article is titled “The Value (and Risk) of Credit Reports to HR.” Now available for free download, the article explains how to use credit reports fairly, legally and effectively. Readers will gain the following insights:
– How to determine when credit reports are relevant to the job.
– Identifying red flags among applicants.
– Knowing what to do when a red flag is discovered.
– Legal requirements under the Fair Credit Reporting Act.
– Evaluating each applicant or employee on an individual basis.
“Employers obviously need to focus on jobs that are directly involved in finance or sensitive client situations, but there may be other positions where it’s risky not to review the credit records when making hiring decisions,” said Nick Fishman, chief marketing officer and co-author of the article. “For example, some IT jobs have access to confidential client information, which might create a risk of identity theft.”
“If one of your employees steals from a client, the organization can face serious damage to their reputation as well as lawsuits from the client,” said Jason B. Morris, EmployeeScreenIQ president and co-author. “The client will have a good case that your organization did not take steps to protect them if the organization didn’t review a credit report before hiring the employee.”
Download your free copy of “The Value (and Risk) of Credit Reports to HR” by clicking http://www.employeescreen.com/credit_reports.asp
EmployeeScreenIQ is a Cleveland, Ohio-based employment screening company offering a variety of employment screening services to mid- and large-cap organizations throughout the world, including those in North and South America, Europe and East Asia. For more information visit www.EmployeeScreen.com.
Nick Fishman, EmployeeScreenIQ
Fisher Vista for EmployeeScreenIQ
This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: www.HRmarketer.com) on behalf of the company listed above.