Let's say you've conducted an interview for the financial manager post and you now want to conduct a credit check on your ideal candidate right after he's given you written consent to check.
So you get detailed information about your candidate's credit and financial history (including court judgments) from the credit bureau.
When you look at it, you discover your job applicant has a poor credit history.
What do you do now?
Are you allowed to disregard his application completely?
Here's what you must do if you discover your job applicant has a poor credit record
According to the Practical Guide to Human Resource Management, your decision on what to do after you've discovered your job applicant has a poor record will depend on the nature of work he'll be doing.
You definitely don't want to employ a financial manager who can't manage money. A poor credit history often means a high risk of fraud.
More importantly, you may also be faced with a potential fraud risk because the employee may be under financial strain. There's potential for him to steal to supplement his income.
But you also need to be cautious of rejecting an applicant simply because of his credit history.
If the job doesn't require him to work with cash or finances, you wouldn't be easily able to make a case for increased risk of fraud or embezzlement.
Remember, just because someone has a poor or late payment record doesn't automatically mean that they'll steal from your company.
The bottom line: If you discover your job candidate has a poor record, take into account the nature of the job he'll be doing and if his poor record will affect the job.
Well there you have it. Knowing what to do if you discover your employee has a poor credit record will help ensure you handle the situation in a legal manner.