It can be necessary to run a credit check for employment in a certain business or for a specific position in that business. While a credit check isn’t a particularly common type of pre-employment background check, it’s absolutely vital for some professions. For example, if you’re interested in working as an accountant or mortgage loan originator, your employer will definitely want to ensure that you can handle money well, starting with your own. Credit checks can be performed on a variety of positions for a variety of reasons, but if you’re an employer, performing a credit check on a prospective leader can feel a bit different. When you identify a prospective leader amongst your employees, it means that you’ve noticed something special about them- their dedication, their helpfulness, the way they interact and guide other employees, and so on. You might feel more nervous to run a credit check on them because you already have your hopes set high to make them a leader in the company and you don’t want to be proven wrong in your choice. However, the truth is, running a credit check on a prospective leader really isn’t different to running the check on an applicant or other employee. Here are some tips to follow:
Set aside your bias
While the process of running a credit check on a prospective leader isn’t any different than running a credit check on any other employee, you might feel some type of loyalty to a prospective leader. This employee has clearly left a good enough impression on you for you to consider making them a leader in the company. It’s only natural to feel a certain level of gratitude or loyalty towards them. However, in order for a credit check to be effective, you must first set aside your bias before viewing or analyzing results. If you see less than ideal results, you may be inclined to make excuses for the potential leader rather than see the results for what they really are. While you should also thoroughly analyze the credit check and get context to any out-of-character issues you might find there, you must also make sure that you aren’t being biased. Credit check results should be analyzed in the same way for every employee and applicant that you screen.
Be thorough in your credit check
Make sure that your credit check is thorough. A credit check can tell you a wide variety of information about your prospective leader from information about how they utilize credit to their bankruptcies and litigations. While not every bit of information regarding their credit may be of interest to you, make sure that you verify all of the information that is relevant. One of the most important aspects of a credit check is to verify whether the individual being screened has ever encountered legal problems as a result of their finances. For example, if a prospective leader that you’re screening falls behind regularly on payments to their creditor, it should be a red flag. If they don’t take initiative with their own finances, how can they be expected to play the role of a leader in the company?
Analyze the results before making any conclusions
After you have set aside your bias and performed a thorough background check, usually with the help of a third party that specializes in pre-employment screening, it’s time to analyze the results. It’s important to analyze the results of a credit check thoroughly before making any conclusions about the prospective leader. For example, if a prospective has several overdue accounts, you might be able to conclude that they’re lazy or poor planners. Or if they had debt at one point, made payments regularly and are now debt-free, you can tell that they’re determined and hard-working. Be sure to understand what exactly the credit report means in terms of who the prospective leader is as a person before you make any decisions.
At the end of the day, performing a credit check on a prospective leader can be both helpful and necessary. Remember that performing this check on a prospective leader is no different than screening any other employee or applicant. Remember to set aside your bias, perform a thorough credit check and analyze the results completely- your credit check will run smoothly and you’ll be able to make a confident and informed decision about whether to turn your prospective leader into a leader.