Credit Checks As An Employment Pre-Requisite?

This article references a very touchy subject if you ask me. More often than not, prospective employers are relying solely on the information obtained from one consumer report or another, with total disregard to the accuracy level of contents. In this economy especially, blemishes on one's credit or consumer report accounts for the vast majority of our population. As a Recruiter, this can weigh in heavily on any and all efforts to scout "qualified" talent, and affect a rather positive chance at having your talent placed. I have listed the link below, for your view.

What are your thoughts? Should this be a main source of "character reference," or do you disagree with it completely?

http://www.sun-sentinel.com/business/sfl-ym-credit-0628-cpsbjun29,0...

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Permalink Reply by KarenM CAC CSP / hirecentrix.com on July 21, 2009 at 9:48am: EEOC and the E-Race Initiative - The EEOC announced its Eradicating Racism And Colorism from Employment (E-RACE) Initiative to “strengthen its enforcement of Title VII and advance the statutory right to a workplace free of race and color discrimination.” Among other things, E-RACE focuses on recruiting and hiring practices.

Beware reliance on credit reports http://snurl.com/nneq2

The EEOC believes that many employers use credit reports to screen out applicants under circumstances where the “business necessity” standard is not met. The EEOC has flatly stated that, absent business necessity, credit checks simply exclude too many black and Hispanic applicants to pass muster under Title VII. Employers who rely on credit history to screen applicants for positions with no financial responsibility should be prepared to demonstrate a specific, objectively reasonable business justification for doing so.

Final tip: While the EEOC has previously described as suspect each of the specific recruiting and hiring practices identified as part of the E-RACE Initiative, it is fair to say that the agency has historically devoted the bulk of its resources to less subtle forms of discrimination. Prudent employers will view the initiative as signaling a dramatic change in this policy.; ▶ Reply to This

Permalink Reply by D. Drayden on July 24, 2009 at 11:47pm: Karen,

Thank you for the EEOC/E-RACE article! Great addition to the topic. Please enlighten me as to what your thoughts are on the issue? Your responses always seem to peak interest.; ▶ Reply to This

Permalink Reply by KarenM CAC CSP / hirecentrix.com on September 6, 2009 at 10:17pm: My apologies for the slow delay in answering. Unfortunately I had not been alerted to this question and only saw this today.

This is a major concern especially moreso today, with so many unemployed companies have focused not on their needs to get their jobs done, but more on their wants and desires. Hiring decisions today are more often made on emotional beliefs, and desires, and yes, even on prejudices.

We actually saw this happening as far back as about 4 years ago.. and actually even longer.. when companies started paying less, taking benefits away, and taking longer to hire..

I wrote a series of articles about this several years ago, which better explains it.. you can find it here http://www.directhireavenue.com/viewpoint/86-war-for-talent-fact-vs... -

I appreciate your comment and also the compliment..

Please visit directhireavenue.com (beta site) to read the series, and if you can also sign up for the newsletter so that we can let you know when the site will become ready and rearing to go..

Thanks for following
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