Running Credit Reports on Potential New Hires?

H Gregory Gershman

Is anyone running credit reports as part of the interviewing process for sales employees?  Do you think this should be a standard practice?  Other industries do like real estate, insurance, and financial sales.

Clint Jones

Other than to find out if someone is going to be a payroll nightmare with garnishments, I really don't know what there is to gain by doing this.

The majority of really good salespeople I have ever worked with have all had a tendency to overspend.  That is the very reason that they make so much money.  They NEED that money to pay their bills!

H Gregory Gershman

I am not definitively in favor of credit reports, mostly because it can be a very discriminitory practice, but their are some legitimate reasons other businesses do it.  Mostly to protect the business and customers.

The other companies that run credit reports on potential employees do it for a couple reasons.

1 - They worry that employees that are financially desperate will be willing to do things to the business and clients that are unethical or even illegal.  Such as lie to make a sale.

2 - If a salesperson is working on commission and cannot count on a steady income weekly that they may quit a job they are being successful with because one individual week is lower than normal.  An example is a sales rep making $50,000 over their first 6 months, spending at that level, and then having one month they only make $5,000.

3 - If a salesperson is financially reckless can they help guide customers in how to spend money?  

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