September 22, 2010 Background Checking: Has the Use of Credit Background Checks Increased? A Comparative Look and 2004

Background Checking: Has the Use of Credit Background Checks Increased? | ©SHRM 2010 Key Takeaways The credit background check questions in the 2004 and 2010 surveys were asked slightly different from one another, however they can be examined for comparative purposes to understand trends in the use of credit background checks by organizations. 1)The use of credit background checks has not increased since In 2010, 40% of organizations indicated that they did not use credit background checks compared with 39% of organizations surveyed in )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 (candidates applying for positions with financial responsibilities, positions with access to sensitive information, etc.) compared with 42% of organizations in 2004 that indicated they conducted credit background checks “rarely” and “sometimes” (combined). 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. 3)Less than one in 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 at their company compared with 19% of organizations in 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. 2 Has the Use of Credit Background Checks Increased? A Comparative Look: 2010 and 2004

Background Checking: Has the Use of Credit Background Checks Increased? | ©SHRM 2010 Has the Use of Credit Background Checks Increased? A Comparative Look: 2010 and 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 *Survey margin of error: +/- 5% 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) 3 42%