Results of Statistical Surveys: Who, When & Why Credit Reports are Used
Based on survey results released by the SHRM last January 22, 2010, employers basically make use of credit reports as a basis for determining an applicant’s suitability for a particular job being applied for.
Statistical reports reveal that only 13% of surveyed employers require credit background checks on all job position levels; 47% require credit checks on a selective basis while the remaining 40% do not use credit reports at all.
Of the 47% who require credit report checking for selected job positions, the SHRM survey further disclosed that 91% need the said reports for occupations that require legal and financial conscientiousness. This requirement is applied to those who have direct involvement in handling cash, particularly the banking industry, including positions held by accountants, compliance officers, or technologists directly involved in performing jobs that might render the hiring company vulnerable to legal liabilities.
In most cases, 46% of the job categories that require credit reports are those for executive positions such as chief executive officers, chief finance officers, or chief human resource directors, just to mention a few.
Thirty-four percent (34%) of other job positions that require credit report checks are those that permit access to highly confidential information like salaries and company benefits, medical as well as personal information about company employees, or those who have access to company technologies or formulas.
Some other employers require credit report checks for 30% of job placements requiring strict standards in financial trustworthiness, because the positions to be assumed give the employees access to other people’s monies, properties, or sensitive information.
Some credit reports are used in compliance with state laws, as part of background checks for positions occupied by day care teachers, medical practitioners, or security guards, and they represent 11% of job openings that require credit reports. Other jobs involved with national defense, homeland security, childcare and care for the elderly and health care workers, particularly those with access to drugs, pharmacies, rehabilitation centers, and nursing homes have statistical results ranging from 3% to 5%.