Raising Curtains from The Relevance of Availing Employee Credit Checks

1. A credit check can provide an employer with an insight into an employee or candidate's financial situation. The assessment includes varied information such as credit card and debit card debts, payment and default history, and any delayed payments or loans. Therefore, availing of employee credit checks is very important to analyse whether a person would be a right fit or not. What are employee credit checks? Credit checks are often seen as a necessary part of the pre-employment screening process and are usually included in most background screening packages. In addition, credit checks are a crucial component of pre-employment screening standards such as BS7858 and FCA- level screening. The most basic credit check includes a bankruptcy check, a CCJ check, and a current credit score for the individual. While looking for a credit check provider, one must always team with a service provider offering tailored additional employee check solutions, such as address verification, a search for undisclosed addresses, and Electoral Roll confirmation. Relevance of employee credit checks: For the protection of company assets: Employers can use pre-employment screening checks to help protect their company's assets and reputation. Through these checks, employers can avoid hiring candidates who may be unsuitable for the position or pose a risk to the company. For instance, someone with a history of violence or theft may not be suitable for a job that involves handling money or working with customers. Additionally, employers can use background checks to verify the accuracy of a job candidate's resume/CV or application form. Taking the time to conduct a thorough background check on

2. potential employees can help ensure that the best possible candidates are hired for the business. As a risk management strategy: A background screening program can be beneficial in avoiding potential risks, such as budgetary, legal, and regulatory issues, that could arise from hiring a candidate who has falsified their employment history, education, certification, criminal history, or employment eligibility. Not only could this lead to a poor hire, but it could also increase talent acquisition costs. Such a program can help detect false or misleading information early on and prevent future risks. To avoid negligent hiring: Negligent hiring allegations may be made when an employee causes harm to another employee or a third party while performing their job duties, and the victim claims that the employer should have known or checked in advance the employee's potential for causing such harm before hiring them. If this is the case, the employer can be held liable for the negligent hiring damages, which can include issues like legal fees, settlements, and damage to their reputation. To ensure workplace safety: Pre-employment employee credit checks can be highly beneficial in minimising the risk of fraud by weeding out potential candidates who could be a hazard to the reputation of the company. In addition, a thorough pre-employment background check will provide information about past occurrences that could be essential in recognising any potential behaviour that could be a red flag in the future.