Question

Is it appropriate for employers to research applicants’ backgrounds? What about credit histories?

Answer 1

Yes, it is important for an employer to research about applicant’s background. Following are the reasons:

1. Proper relieving from last organization: It is important to check whether the employee was properly relieved from the organization by fulfilling all formalities after relieving. An employer would not want to hire someone who has absconded from the last firm he worked with.

2. Code of conduct and Performance: The reason of background research of a new employee can be to know about the character of the employee or the level of performance he had there. The past manager’s feedbacks are taken and judgement is done based on that.

3. Criminal record: Companies go for the background check in order to know whether the employee had any criminal history in past. The employee must have a valid address and identity proof which fulfils the credibility criterion of his candidature.

4. Compliance: Companies go for a compliance check for their employees in order to confirm whether any aspect of the candidate does not fulfil the compliance criterion of the firm. This is mostly done in case of a senior level recruitment. The employee must not be working as a director to any other firm. This is done to check for double employment.

Yes, the credit history of the candidate should be checked to know whether he has defaulted on his bank loans in past or not. This brings in credibility to the candidate. The company would not want to hire an employee who is likely to steal from the business or customers.