There are many companies that require credit checks as part of their hiring process for sales reps.
I have to tell you, flat out, that I’m not a fan of it for several reasons . . .
1) Unless this sales rep will have authority to sign checks, access the company bank account or will be involved in the sale of financial services . . . I don’t think their personal credit is anyone’s business!
2) With the world economy having taken a plunge over the last few years, many people had layoffs in their families and have struggled financially. I don’t think we should pass on talent because of that.
3) Most people make false assumptions about bad credit. Let’s go there.
“Its an indicator of poor character”
Maybe, but I’ve worked with people who cheated on their spouses, were terrors to work for, had alcohol problems, etc who had awesome credit!
Also, there are some people who have bad credit because they chose to actually pay their creditors instead of filing for bankruptcy.
I can’t tell you what the laws are today, but when I lost everything I had, I chose to pay everyone off over time and it actually reflected worse on my credit report than someone else I knew at the time who filed for bankruptcy.
“People with bad credit are distracted”
They sure are and so are most people these days.
Take a good look around your office and you’ll see a bunch of human beings that have no shortage of things to think about in their personal lives. Some good, some bad. Some of them paint a smile on their face at 9:00 am and meanwhile, their world is falling apart.
It has nothing to do with credit . . . its called “life”!
Earmuffs kids . . . this next paragraph might offend!
If I had my life to live over again, I might respond to a request to do a credit check with a request to find out the last time they got laid. That’s a really big distraction and might have them managing me in a really uptight way.
I suppose we could generalize too and say that people who have money won’t work as hard as someone who is struggling but that would be a ridiculous assumption and as crazy as this might sound . . .
I don’t want these things judged by either some “Dr Phil” or some “Suze Orman” wannabe!
Between a good, thorough interview process, drug tests, checking my driving record, checking me out online, checking my references . . .
There comes a point where we need to make a decision without intruding completely on one’s privacy!
One last thing, there are people in this world, that for whatever reason, made mistakes or maybe were just dealt a really lousy hand but . . .
They’re willing to take your opportunity and work their tail off, to get their family out of debt and have a better life!
Well enough with my rant . . .
What are your thoughts?
Is the credit check a necessary step in hiring a sales rep or do you feel it to be intrusive and inappropriate?
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Paul,
I love it! I think perspective is important. Looking at someone through such a narrow view is really unfair to both parties. As you mentioned, raw data without context is pretty useless. Judging someone without having a shred of understanding is just plain lazy.
If you have never made a mistake, then you are qualified to throw stones. When you become perfect, then you are qualified to judge someone else. Let us know when you get there.
Cheers,
Marc
And that’s the thing Marc, nobody is perfect . . . Including the hiring manager.
It’s a silly policy that’s limiting too many companies!
Thank you for taking the time to share your thoughts!
Paul
It makes you wonder how many good candidates are passed over because of some silly policy?
When that happens, both parties are the losers.
Exactly Marc! What a shame!
I could never understand how a credit report can decide how well someone can do a job. I agree, Paul – in today’s world too many have or still are struggling and the employer isn’t helping them by denying a job based on that report. You have to understand the WHY – is it due to family problems, job layoff, death of a spouse, illness, etc. That’s when the credit report doesn’t figure in.
Exactly Arlene!
I think it’s a huge mistake!
Thank you so much for stopping by !
Great post! As an employment screening sales professional I talk to HR people all day, every day about their screening programs. Credit reports are becoming less and less likely to be included in a background check, regardless of position. Many states have passed laws limiting the use of credit reports in employment screening unless credit is directly related to the position. The EEOC has also issued guidance that basically says the same thing.
That said I know many people with bad credit who are great at what they do.
Thank you Jonah I had no idea that laws were changing with this.
Another point I forgot to bring up. Pre-employment credit checks do not show a credit score and will have no affect on the candidates score. The report will show balances and payment history.
Spot on, as always, Uncle Paul. I was out of work 6 months and my current company took a “chance” on me. $16 mil in sales proves their “chance” worked out! Credit checks have no place except for your caveats.
Well said Vince!
They clearly made the right choice!
Rock on buddy!