Credit Checks

About Credit Checks

What To Expect From Financial Integrity Checks

When it comes to hiring a candidate there are some fundamental reasons why a company wants to ensure the first hire is the right hire. Namely, to save money on costly recruitment processes, as well as protecting the company’s reputation if they hire and then have to fire the wrong candidate. Credit checks, or financial integrity checks, are a key part of getting that recruitment process right, and that’s where Accurate can help.

 

 

What are employment credit checks?

As part of an employment screening process, employers can conduct an employment credit check on a potential candidate to reveal their financial integrity, which can help a company reduce the risk of employee fraud. These checks can reveal information such as county court judgements (CCJs), bankruptcies, individual voluntary arrangements (IVAs), decrees and sequestration orders, typically spanning over the last six years.

There has been an increase in businesses opting for these checks as part of their employment screening package, especially when employing candidates in roles that involve handling money and accounts.

Why conduct credit checks for employment?

Financial integrity checks or employee credit checks are an important component of the hiring process to help reduce the chances of an employee committing fraud against a company. In some instances, during the recruitment process, an employee credit check is a mandatory requirement, depending on the industry. Employers tend to conduct credit checks on their employees or potential candidates to evaluate whether the person is trustworthy and suitable for their prospective position and possible duties. Some employers may perceive a candidate who is in a great amount of debt (or that has a history of financial difficulties) as a potential threat to the company, in that there is a higher risk of them committing fraud or money laundering within the business.

Financial integrity checks are usually ordered by businesses who are in the financial sector, or where the candidate will potentially have access to cash and accounts within the business.

The credit check can also be conducted bespoke to a company’s requirements. Depending on the sector that the company is recruiting for, Accurate can apply specific search criteria or particular areas of interest that are connected with that business. No two companies are the same, and so the check is tailored to suit each business’ needs.

What happens during an employee credit check?

A financial integrity check starts when a candidate gives authority via an online screening form, which they will receive once their tailored screening has been initiated.  The sooner a candidate authorises this, the quicker the process can begin.

Once authority has been given by the candidate, Accurate’s expert team will assist them and potentially ask for some further information to help support the search and look into the answers they have submitted.

From a candidate’s point of view, Accurate’s employee credit checks do not ask candidates to provide bank statements, and checks can only be run against records that are publicly available. It’s important to note that during the process the credit score of the candidates are not examined, and so the check will not have a detrimental impact on it.

What happens after an employee credit check?

Following an employment credit screening check, an employer may opt not to hire a candidate if the results of the credit check indicates that their job performance may be influenced by their financial circumstances.

At Accurate, a report is provided to the employer following the credit check, enabling them to finalise the onboarding process and decide if they are the right person for the job.

If you are hiring, and require any further information on employee credit checks or pre-employment screening checks, get in touch to talk it through: contact us.