How Financial and Salary check is important in Pre - Employment Verification

Summary - Interviews, and exams only tell you so much about a prospective hire, with salary history in hand you can see for yourself if other employers were impressed enough with a candidate's work ethic. Moreover, financial background verification reveals if the prospective candidate has any financial suits running in his name, thereby justifying his candidature.

Hiring the right person isn't easy. According to studies conducted on recruitment trends, corporate job postings attract 250 candidates on average; however, only a handful will ever make it to the interview process. Once you've weeded out prospective employees that don't have the necessary qualifications and aren't the ideal fit, it's still often challenging to separate the front-runners from the rest of the pack. One plan of action utilized by several hiring groups is requesting a possible hire's previous earnings history. So let us see how financial and salary check are important in pre-employment background screening

When should you use a financial background Verification?

Although in most cases a financial background check may not be a necessary pre-employment check, there are some job position requirements that may merit a check for the financial background verification or credit report. Verifying a person’s financial background with a financial background check that includes past salary history is important for positions in the areas of banking, accounting, or domains where confidentiality is mandatory. While recruiting for accounting or money responsibilities, employers obtain credit reports to provide insight into the financial dependability of a prospect before hiring. Employers use credit reports throughout the hiring method per A Society of Human Resources Management (SHRM) survey. If this is information you need, you can get approved by the credit bureaus to order these reports.

What are the various kinds of Financial Background Screening?

In most cases, when someone uses the term "financial background check," they are referring to a credit history check. Employers do not see credit scores on these checks, but they can learn details such as highest credit extended, limits on different credit lines, average monthly payments, balances, past due amounts, and percentage of credit still available. A money background check might also yield info regarding civil suits or judgments, bankruptcies, accounts in collection, collection amounts, and tax liens. Typically, a financial background check is not a check that looks for financial crimes: criminal infractions will show up on a thorough criminal history check. Instead, a financial background check is meant to assess a person’s financial responsibility by looking at how they manage money in their day-to-day life.

What is included in a Financial Background Check?

The report covers distinguishing info like name, address, previous names, and social security number. More significantly, it reveals the debt the job applicant has incurred, including credit card debt, mortgage, and car payments, student and other loans, and the prospect’s payment history- including late payments and collections. You’ll conjointly see public records like tax liens, civil lawsuits, and bankruptcies. Keep in mind the truthful Credit news Act (FCRA) needs that the recruiter or leader get the duty applicant’s written authorization before running a credit report.

As a one-stop resource for employee background screening requirements, cFirst has the capability and infrastructure to conduct verification on a potential recruit. This is particularly vital considering the shocking data point revealing that fifty-three of job applications contain inaccurate info. Even worse, a 2013 study revealed that 27% of employers reported losses of over $50,000 due to bad hires. Our recommendation – don’t take risks and find the most effective info to create a solid hiring call.

Lourdes Fernandes is the Business Head of cFIRST Background Checks, one of the leading employee background verification companies in India. Lourdes is an industry veteran and often writes about the articles.