Background Checking: Has the Use of Credit Background Checks Increased Background Checking: Has the Use of Credit Background Checks Increased? A Comparative Look: 2010 and 2004 August 24, 2010

Has the Use of Credit Background Checks Increased Has the Use of Credit Background Checks Increased? A Comparative Look: 2010 and 2004 Key Takeaways The credit background check questions in the 2004 and 2010 surveys were asked slightly differently; however, they can be examined for comparative purposes to understand trends in the use of credit background checks by organizations. The use of credit background checks has not increased since 2004. In 2010, 40% of organizations indicated that they did not use credit background checks, compared with 39% of organizations surveyed in 2004. Most organizations that conduct credit background checks conduct them on SELECT job candidates. In 2010, 47% of organizations said they conducted these checks on select job candidates (such as candidates applying for positions with financial responsibilities or positions with access to sensitive information), compared with 42% of organizations in 2004 that indicated they conducted credit background checks either “rarely” and “sometimes.” Taking into account the margin of error of +/- 5% for the 2004 and 2010 surveys, there is no discernable difference between the two points of data. Less than one out of five organizations conduct credit background checks on ALL job candidates. In 2010, only 13% of organizations reported conducting credit background checks on every job candidate who applied for a position with the company, compared with 19% of organizations in 2004. Taking into account the margin of error of +/- 5% for the 2004 and 2010 surveys, there is no discernable difference between the two points of data.

Has the Use of Credit Background Checks Increased Has the Use of Credit Background Checks Increased? A Comparative Look: 2010 and 2004 2010 2004 Does your organization, or an agency hired by your organization, conduct credit background checks for any job candidates by reviewing the candidates’ consumer reports? *Survey margin of error: +/- 5% In general, how frequently does your organization, or an agency hired by your organization, check any of the following references for its job candidates? Credit Checks All job candidates (13%) Select job candidates (47%) No (40%) Always (19%) Sometimes (24%) Rarely (18%) Never (39%) Note: n = 343. Excludes respondents who responded “Not sure.” Source: SHRM Background Checking Survey (2010) Note: n = 296. Excludes respondents who responded “Don’t know.” Source: SHRM Reference and Background Checking Survey (2004) 42%