The Importance of Checking Applicants’ Financial History

The Importance of Checking Applicants’ Financial History

Checking applicants’ financial history decreases risks to your business.

The hiring process is more competitive than ever and finding the right candidate can be difficult. In some cases, a full background check may be helpful when considering what will help to narrow down your applicants. Be aware, however, that not all background checks are legal to use, and some of the information you choose to disqualify candidates by can border on discrimination. Financial background checks, in particular, can be useful but are also often highly regulated.

When Is A Financial Background Check Appropriate

If you are looking to fill a position that deals in sensitive accounting or financial responsibilities you may be interested to know the financial dependability of an applicant before hiring. It’s estimated that about 60% of employers use credit reports during their hiring processes if this is information you desire you may apply with credit bureaus to receive these types of reports.

What Is Included In A Financial Background Check

While financial reports cover many of the same things that other background checks will report; such as previous names, addresses, and social security number. Financial background checks also include public records, like bankruptcies, tax liens, lawsuits, and any debt (credit card, mortgage, car payments, and loans) the applicant has incurred. If you do want a financial background check the Fair Credit Reporting Act does require that the applicant gives written consent before a check is made.

Considerations and Regulations

Financial background checks have been coming under increasing government scrutiny. New York City, for instance, has passed legislation that forbids employers from inquiring about salary history as it can lead to pay equality issues. If the position you hope to fill requires a financial check, make sure to check up on the legal requirements in your city before making inquiries to the applicant.

BACKGROUND SCREENING YOU CAN TRUST FROM AIR PRE-EMPLOYMENT SCREENING SERVICES

AIR Pre-Employment Screening Services is ready to provide you with quality tenant screening for all of your properties, including driving record screening, criminal records searching, drug testing, identity verification, and even screening personal and professional references. We have over 20 years of experience in our field, and we pride ourselves on providing excellent customer service, incomparable accuracy, and quick reporting. For more information on our services, contact P.J. Davis at pjdavis@air-prehire.com, call 410-654-5665, or visit our website at http://www.air-prehire.com/. For more hiring tips and articles like this, follow us on Facebook, Twitter, Pinterest, and Google+.

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