The Many Benefits of a Credit Check during the Hiring Process

Many more businesses are conducting credit and background checks on people who apply for jobs with the number of companies doing so up more than double from just 20 years ago. Because about 60% of employers now take this extra step, there must be good reasons for making the effort. This number probably won’t change anytime soon because the job market is becoming more competitive and personnel departments believe that a credit check is an important hiring step.

The primary reason for using this system when hiring new employees has to do with the type of jobs that they’re applying for. Banks, other financial institutions, government agencies, and brokerage houses find that credit history is important when there is a chance for mismanagement of money and fraud. Finding out all they can about how an individual handled money in the past is considered due diligence.

Should You Conduct Credit Checks?

Because the economy of southeast Asia in general and Singapore in particular has experienced healthy growth in last couple of decades, more and more people are seeking employment in this region. Your company can benefit from using this important tool to reduce risk with a new employee, to help the company comply with regulations in your industry, and to accurately identify financial information in the applicant’s background that may have a negative impact on the company.

You’d be wise to learn more about credit check in Singapore by visiting the website of one of the reliable leaders in this special field. You’ll find that you can make sure that the candidates for your open positions are financially sound and likely to make sound financial decisions on a consistent basis. You’ll find that a large percentage of businesses use professional services for background checks and credit checks when hiring, uncovering issues that they wouldn’t have discovered with any other process.

If you’ve been in the personnel department or human resources for any length of time, you also understand that you need more than the bare data the applicant supplies to make sure that your screening process is successful in locating the best people for your operation. Of course, any credit check or background check is only as good as the public records available. But if you work with experienced specialists, you will receive the accurate, thorough report that you need.

Final Decision

You may also discover the usefulness of a credit check when your final decision comes down to two equally qualified candidates. This data may be just what you need to contrast two individuals, especially if you find issues of concern in the credit check or background check of one but not the other. If one applicant has significant debt obligations or credit problems, these personal issues might distract from his or her ability to perform the tasks that you require of him or her.

Even if personal credit history is not a major concern for your organisation, you may also use a credit check to better determine the character of someone who you plan to put into a responsible position. This process can also help you verify other information provided by the candidate, such as where he or she has lived and worked prior to coming to you.

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