A recent survey from the Society for Human Resource Management indicated that more than half (53%) of all organizations do NOT conduct credit checks of any kind on new hires. This is a figure that has increased dramatically from 2010, by 40%.
Most employers processing credit checks (34%) say they do so only for select job positions, with only 13% conducting credit checks on ALL job candidates. 87% of those employers conducting for select job positions indicate they do so on those candidates applying for financial positions; 42% indicate they do so for executive positions and 34% for candidates who will have access to highly confidential candidate information.
Employers use credit checks to prevent fraud, theft or embezzlement and to reduce legal liability for negligent hiring.
The three most important factors employers use to make a hiring determination are previous experience, good fit with the job and organization, and specialized skills or expertise associated with the job.
80% of organizations report that they have hired candidates with negative information on their credit report, indicating that credit history is not often a barrier to hiring.