Ways a Credit Check for Employment Can Increase the Revenue of Your Business: Part 2

Running pre-employment screening checks such as credit checks is an important part of the hiring and staffing process. It can protect a company’s valuable assets, encourage compliance, facilitate loyalty, and foster a feeling of safety amongst employees.

Credit checks are more important for positions that require a person to be responsible for handing and moving large accounts and investments. The greater responsibility and financial management a given position requires, the more crucial a credit check should be on an application. For senior executives of major corporations and for people in the financial sector, credit checks should be standard when recruiting and hiring.

Character

If something shows up on a credit check that’s not even an actual offense, but points to an unhealthy relationship with money, this can be a red flag about a person’s character. When a credit report reveals a history of questionable behavior — for instance, not paying taxes — this can be an indicator of a bigger problem of untrustworthiness.

On the flipside, the more a person has a clear understanding of investing and other options for financing themselves, the more they are likely to understand how to do this for your business.

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Whether or not a person is rich or poor over a given period of time, red flags can show up as inconsistencies over time. For instance, if people have gone through periods of extreme poverty or debt, they may have felt deprived, and when people feel deprived, their moral behavior can be compromised  — in other words, people who feel extremely stressed out about their financial situation may be more tempted to lie, steal or cheat to get more.

So, a part of this process is to look at overall behavior and character, rather than the exact mechanisms or amounts at play.

Lower Risk Means Higher Payoff

Hiring an employee is a long-term investment, in most cases, so mitigating the risk of a person making a mistake or actually committing a crime that could cost your company thousands of dollars or more just is not worth it. Doing a credit check at the outset helps to ensure the safety of your business. Just like any investment, the lower the risk at the outset, the more of a chance a person will help you grow your business over time.

The greatest number of fraud cases  tend to appear in the banking and financial sectors, government and public admin and manufacturing. So, if your company falls into one of these categories, it’s important to be especially diligent about the possibility of fraud and other financial crimes.

Safety and Retention

If other employees experience financially-motivated trauma or fraud (for instance, identity theft or monetary theft), those other employees may not only cost the organization in legal fees, they may also have to take time off work due to trauma and the like. Your bottom line is effected when you lose the services of valuable staff who may not feel safe in the workplace or may ultimately require extra coverage such as workers’ compensation benefits.

MORE: Ways a Credit Check for Employment Can Increase the Revenue of Your Business: Part 1

Emma Epps

Emma Epps
Emma Epps is one of the marketing managers at Trusted Employees, and helps provide businesses, non-profits, and volunteer organizations with pre-employment screening services.

Emma Epps
Emma Epps is one of the marketing managers at Trusted Employees, and helps provide businesses, non-profits, and volunteer organizations with pre-employment screening services.

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