For organizations of all sizes, the quest for the right talent stands as a pivotal factor influencing growth and productivity. Undoubtedly, employees influence the success trajectory of any company. The challenge that arises for HR professionals lies not just in hiring individuals, but in selecting the right fit – a task that demands meticulous attention.
Recognizing this, the Credit Bureau (Singapore) Pte Ltd offers discerning employers a strategic advantage in the recruitment industry. In this contributed blog, you will learn the key role of informed hiring decisions, specifically, the credit credential of jobseekers and how organizations can foster efficiency and compliance.
Importance of Credit Report in Employment Screening
Contributed by Credit Bureau Singapore
Finding the right group of employees is crucial to the growth and productivity of a business and we can all agree that employees are the backbone of the company.
Companies will wish to hire the right person so as to eliminate any unnecessary performance distractions, this will allow the employees to focus on what is relevant to accelerating the growth of the company. Whereas bad hiring decisions may potentially lead to more frequent follow-ups or even disciplinary actions that might reduce the efficiency and productivity of their work.
How then can companies ensure that they really picked the right person for the job?
Importance of Credit Reputation for Jobseekers
Most jobseekers already know that it is important to prepare a good resume and perfect their job interview skills to land into their dream jobs but few are aware that employers will also take reference from your credit report during pre-employment screening. This is especially crucial for companies who are in the finance industry as employers will request for your Credit Report to assess your overall credit health and financial stability.
Credit Bureau (Singapore) Pte Ltd has evolved to provide employers with reliable credit screening tools to make well-informed hiring decisions. This is especially relevant for banks and financial institutions as they are closely regulated by the Monetary Authority of Singapore (MAS). Under MAS’s Guidelines on Fit and Proper Criteriahttps://www.mas.gov.sg/regulation/guidelines/guidelines-on-fit-and-proper-criteria, be it an institution, exempt financial institution, exempt entity or a fund management company, they are recommended to do employment checks which include credit report checks on pre-hires.
Similar to a report card, employers will be able to use the individual’s credit report during pre-employment screening to evaluate the individual’s credit health before eventually determining the employability of the potential candidate. Through the individual’s credit reports, employers will be able to pick out any adverse payment history or possible recent law litigations and bankruptcy record. Poor credit score or report serves as an indicator that the employee might be financially irresponsible and also serve as an early warning sign to prevent companies from hiring potential data monger who might seriously damage the company’s reputation in the future.
What do employers look out for?
Employers use your credit report as an assessment tool to your financial history, they look out for any potential red flags and whether you are financially stable before confirming that you are the right person for the job. Here are some common indicators that employers will look out for in your credit report:
- Non-Scored or Public Records. Employers will look out for public records such as past and/or existing writ of summons, bankruptcy record filed against you. This information will be retained in the credit report for 5 years from the date of discharge from bankruptcy.
- Bureau Score. The Bureau Score is calculated from an algorithm based on information in your current available credit data and is a fluid number which may change from time to time in tandem with changes in your credit information. Lenders will assess the Risk Grade and Probability of Default to determine if you are a high risk borrower.
- Account Status History. Lenders will be able to use this information to assess your repayment behaviour for the past 12 months. This information is displayed on a rolling 12 months basis (with the most current cycle on the left) while closed accounts will have the last 12 months payment status history as at the date of closure displayed for 3 years.
Read on further to understand more about what the CBS Credit Report comprises of: https://www.creditbureau.com.sg/enhanced-consumer-credit-report.html
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Hire smarter and onboard faster with the right talent while receiving compliance guidance with First Advantage! Send in your queries to info.asia@fadv.com and visit https://fadv.com/apac/industries/financial-background-checks/ to learn more.
