Question

Discussion: Hiring & Credit Checks Topic Many employers are starting to utilize credit checks as part of the hiring process. Employers who run credit checks on potential employees favor hiring applicants with higher credit ratings. To complete the Discussion activity, please do the following: Answer each question fully. Use a minimum of 75 words for a complete discussion post. While it is not required in this discussion, feel free to bring in outside resources to support your answers. Outside resources include materials outside of the textbook, such as a website. Discuss what you think the correlation is between the two random variables of credit scores and employee selection, and why employers are looking at people’s credit ratings to determine if they are suitable candidates to hire. Do you think someone’s credit rating should be a factor in employment? Why or why not? What types of employers would have a more significant reason for basing employment on credit checks, and why? For example, consider employers whose employees work in a bank, with money (as in retail), and so on. Do you think the type of employer should make a difference in such a situation? Why or why not?

Answer 1

Credit check is one of the important checks that some employers do on potential candidates before hiring. The credit history of a potential employee gives an insight into the debt records of the employee and can act as an indicator of financial distress or unusual liabilities she/he might be going through.

A credit history indicating financial distress might act as an indicator of possible future theft or fraud. For money-intensive businesses like banks, this is a major factor to take into account in order to avoid future troubles. Such concerns might be relatively lower in the role of, say, an office clerk doing ordinary non-monetary duties. However, doing a credit check in jurisdictions where it's allowed is definitely a relevant idea with importance depending upon the nature of job.