Oct
23
What do you think about companies now using credit reports in employment decisions?
Filed Under Law & Ethics
Twzted Love Photography asked:
In todays society credit is becoming more and more important. While it is a neccessity, what do you think about the implementation of consumer report investigations on individuals and basing employment decisions on it?
Male employees commit four times as much fraud against their employers than do female employees. Business losses due to fraud by employees over 60 years old are 28 times greater than those by employees 25 years old or younger. Approximately 58 percent of reported fraud is committed by non-managerial employees, 30 percent by managers, and 12 percent by owner executives.
http://criminal-law.freeadvice.com/criminal-law/business-fraud-theft.htm
The percentage of resumes and job applications that contain lies and exaggerations has been estimated between 30 and 80 percent. (Security Management Magazine)
5% of professional hires have criminal records. (Source: HR Logic)
75% of internal theft is undetected. (”How to Identify Dishonesty Within Your Business”)
Several studies estimate employee theft and dishonesty costs U.S. businesses between $60 billion and $120 billion per year, not including the billions spent on protecting against theft. (”How to Identify Dishonesty Within Your Business”)
Insider theft is growing at 15% annually. (Justice Department)
Employee theft amounts to 4% of food sales at a cost in excess of $8.5 billion annually. 75% of inventory shortages are attributed to employee theft. (National Restaurant Association)
The Labor Law Industry has increased by 2200%. (Equal Employment Opportunity Commission)
Employee theft costs between 1/2%-3% of a company’s gross sales. Even if the figure is 1%, it still means employees steal over a billion dollars a week from their employers. (”How to Identify Dishonesty Within Your Business”)
One-third of all employees steal from their employers. (Department of Commerce study)
30% of business failures are due to poor hiring practices. Annual losses generated by poor hires, absenteeism, drug abuse, and theft amount to $75 billion per year. (U.S. Department of Commerce-Atlanta Business Chronicle.)
Now with these statistics in hand what do you people still believe about comsumer report investigations in todays careers where even places such as mcdonalds may conduct these investigations?
NOE
In todays society credit is becoming more and more important. While it is a neccessity, what do you think about the implementation of consumer report investigations on individuals and basing employment decisions on it?
Male employees commit four times as much fraud against their employers than do female employees. Business losses due to fraud by employees over 60 years old are 28 times greater than those by employees 25 years old or younger. Approximately 58 percent of reported fraud is committed by non-managerial employees, 30 percent by managers, and 12 percent by owner executives.
http://criminal-law.freeadvice.com/criminal-law/business-fraud-theft.htm
The percentage of resumes and job applications that contain lies and exaggerations has been estimated between 30 and 80 percent. (Security Management Magazine)
5% of professional hires have criminal records. (Source: HR Logic)
75% of internal theft is undetected. (”How to Identify Dishonesty Within Your Business”)
Several studies estimate employee theft and dishonesty costs U.S. businesses between $60 billion and $120 billion per year, not including the billions spent on protecting against theft. (”How to Identify Dishonesty Within Your Business”)
Insider theft is growing at 15% annually. (Justice Department)
Employee theft amounts to 4% of food sales at a cost in excess of $8.5 billion annually. 75% of inventory shortages are attributed to employee theft. (National Restaurant Association)
The Labor Law Industry has increased by 2200%. (Equal Employment Opportunity Commission)
Employee theft costs between 1/2%-3% of a company’s gross sales. Even if the figure is 1%, it still means employees steal over a billion dollars a week from their employers. (”How to Identify Dishonesty Within Your Business”)
One-third of all employees steal from their employers. (Department of Commerce study)
30% of business failures are due to poor hiring practices. Annual losses generated by poor hires, absenteeism, drug abuse, and theft amount to $75 billion per year. (U.S. Department of Commerce-Atlanta Business Chronicle.)
Now with these statistics in hand what do you people still believe about comsumer report investigations in todays careers where even places such as mcdonalds may conduct these investigations?
NOE
Comments
8 Responses to “What do you think about companies now using credit reports in employment decisions?”
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With all of the Identity theft and fraud surrounding Americans, unless the potential employee is handling money or high security, it should be Outlawed. Private employers have far too much control over their employees lives as it is installing hidden cameras to entrap them should be outlawed as well. they should be in the open and the employees know that they are being photographed. They don’t own them. It is an invasion of privacy and most don’t pay enough to become that personal.
i think its a load of crap, what does someone’s credit score have to do with how well they do a job. my credit ***** but i’m a damn hard worker.
It is a slap in the face to anyone late on payments or in a jam at one time in their lives, and it is also an invasion of privacy! How ridiculous!
I think it’s awful for a company basing a decision on whether or not to hire a person due to their credit report. I had an ex husband who was a flake, who ran up every bill imaginable and walked away, and for the past 10 years I had bad credit because of him. We were living in Oregon, which is not a community property state, so he was able to put everything in my name (because I had perfect credit when I met him) and walk away without owing a dime.
Years later, Geico made me go through 3 weeks of interviewing and testing for a management position. They were about to offer me the job when they ran my credit report, saw the derogatory info (from my previous husband) and denied me the job SOLELY based on my credit report. I was crushed…. I pay my bills on time and always have. Trusting my former husband to do so destroyed my credit and it still haunts me somewhat even all these years later.
I also had an auto insurance company quote me a very high premium based on my credit report (right after divorcing the flake husband), even though I have a perfect driving record….
It’s not a good or fair practice because there are many reasons why people can get bad credit besides them just being callous about paying their bills.
Our society is based more on financial transactions (service based) than at any other time period. If someone’s personal finances are in perils, it would be easy for them to take money from their employers. I would not hire anyone without a credit check. I have done that in the past, and it has come back to bite me in the A$$.
I think it’s just as ludicrous as basing employment decisions on health records, whether they smoke, or what color their hair is. It’s not only an invasion of privacy, it’s biased.
My credit is still recovering from unpaid medical bills I incurred from being very ill. Do I not deserve to have a job?
I mean, really, where’s the line going to be drawn between bias and non-bias? Just because someone had a run of bad luck or had their identities stolen when they were 20 should not ruin the rest of their lives. One can’t fix that credit without a job.
The low cost of a credit check is insignificant when compared with the cost of a bad hire.
Better to do it and not need it than to later wish you had.
It should be Outlawed..It is an invasion of privacy. Employees are not their slaves….it serves no purpose. It’s Discriminatory and biased. How many times do the credit reporting agencies make mistakes they refuse to correct. Experian and Equifax are based overseas. Credit Bureaus are not governmental agencies and says nothing about the individual. So should bias in physicals. It is not an Employers business wether you smoke a legal substance, what you eat, skin color, gender or where you go after work and what you do on your breaks. It’s a Lawsuit in my book.