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I've been completing job applications and going to job fairs, and what I've never understood is the assumed correlation between applicants and employees with lower than ideal credit ratings, and work productivity/overall performance. I thought that discrimination against the poor was prohibited under equal employment laws but apparently not, though it should be.
Why is it necessary for many employers to research job seekers' credit history? What does having a poor or fair credit rating actually reveal about an individual's ability to do the job? Why isn't it formally considered discrimination against the poor to determine employment based on assets and debts?
Surely without a job, people can't afford to keep an ideal credit rating, correct?
Truly, it's about bondability. If you're in a job that handles money in any kind of fiduciary capacity, most companies writing a bond on your conduct in this role will not underwrite someone with XXXXX dollars in bad debt, write offs or collections.
Truly, it's about bondability. If you're in a job that handles money in any kind of fiduciary capacity, most companies writing a bond on your conduct in this role will not underwrite someone with XXXXX dollars in bad debt, write offs or collections.
If.
I've always thought this was a particularly poor justification, considering most low wage jobs are in money-handling, such as waiting tables, cashiers, front desk clerks, concierge, valet parking... lots of opportunity to mishandle cash and assets. Should they all be judged by credit? Aren't criminal background checks for that?
Research has consistently shown that behavior extends across multiple contexts. For example, if you are friendly to your neighbor, you are more likely to be friendly to your coworkers or even a waitress. If you excessively clean your bathroom, you are more likely to also excessively clean your kitchen. If you worked hard in school, you are more likely to work hard at work. If you have good oral hygiene, you are likely to eat healthy foods as well.
The same applies to all sorts of other behavior. If one is careless with their liabilities, who knows what else they are careless with. It's risky to trust your business with a careless individual.
Research has consistently shown that behavior extends across multiple contexts. For example, if you are friendly to your neighbor, you are more likely to be friendly to your coworkers or even a waitress. If you excessively clean your bathroom, you are more likely to also excessively clean your kitchen. If you worked hard in school, you are more likely to work hard at work. If you have good oral hygiene, you are likely to eat healthy foods as well.
The same applies to all sorts of other behavior. If one is careless with their liabilities, who knows what else they are careless with. It's risky to trust your business with a careless individual.
But those are merely presumptions about a person's character you don't truly know anything about, right? And there isn't any kind of empirical data proving that people with a lower credit rating have poorer work performance, or is there?
But those are merely presumptions about a person's character you don't truly know anything about, right? And there isn't any kind of empirical data proving that people with a lower credit rating have poorer work performance, or is there?
Poorer credit ratings consistently coincide with increases in criminal activity, riskier driving habits and consequently - a riskier employee.
Poorer credit ratings consistently coincide with increases in criminal activity, riskier driving habits and consequently - a riskier employee.
CRIMINAL activity? Really? You have proof that people with a poor or fair credit rating have more severe criminal backgrounds, if they have one at all, than people with good or excellent credit?
Here's a good article on the unfairness and inequality in employment based on credit history. Apparently lawmakers are trying to get something done about it.
CRIMINAL activity? Really? You have proof that people with a poor or fair credit rating have more severe criminal backgrounds, if they have one at all, than people with good or excellent credit?
I wonder what Bernie Madoff's credit was like.
Significant enough for the state of New York to use as a red flag for potential employee fraud.
There's more, but I'm sure you have google too. Bottom line is that it's about numbers - large ones, not the outliers on one side or the other - for many employers.
Research has consistently shown that behavior extends across multiple contexts. For example, if you are friendly to your neighbor, you are more likely to be friendly to your coworkers or even a waitress. If you excessively clean your bathroom, you are more likely to also excessively clean your kitchen. If you worked hard in school, you are more likely to work hard at work. If you have good oral hygiene, you are likely to eat healthy foods as well.
Quote:
Originally Posted by NJBest
The same applies to all sorts of other behavior. If one is careless with their liabilities, who knows what else they are careless with. It's risky to trust your business with a careless individual.
You pretty much summed up what I was going to say.
Quote:
Originally Posted by Yiuppy
But those are merely presumptions about a person's character you don't truly know anything about, right? And there isn't any kind of empirical data proving that people with a lower credit rating have poorer work performance, or is there?
Yippy the credit rating isn't about knowing EXACTLY what personality traits an individual has. But based on the credit score an employer can determine which personality traits the potential employee has the propensity to have.
Let me put it to you in a practical sense. If you were trying to hire a nanny for your 2 year old who would you hire?
A. Nice lady, with experience but is a convicted felon (for forgery)
B. Nice lady with experience with no criminal record
Everyone who is not insane will choose option B.
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