A Credit Report is Just One Piece of the Puzzle
A recent New York Times article addresses the whole credit check debate from both sides. This debate is currently stalling bills introduced in California, Maryland and Connecticut. Opposers to a bill that would make it illegal to use credit checks as part of the hiring process say employers should have the right to use any information available to them to protects their businesses.
On the other hand there are researchers that say there is no evidence correlating weak credit with bad employee behavior such as stealing or fraud. Instead it “unfairly tars the huge pool of people whose credit was damaged by layoffs, medical bills or other factors beyond their control” and “disproportionately screens out minorities.”
Still many employers feel it is their right to protect their companies assets, reputation and security as they see fit. By fit I mean using credit information responsibly and as it relates to the job role. Facing a discrimination lawsuit can be just as bad as hiring a bad employee.
Stuart Pratt, chief executive of the Consumer Data Industry Association, basically sums up the role credit checks should play in the entire hiring process:
“It’s our view that a credit report is a piece of a much larger employment puzzle,” he said. “It’s a piece of a puzzle, not the absolute yes or no toggle switch.”
Well said.
For the complete article click here.
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