The number of employee reference enquiries requested by employers during the recruitment process in Q1 2021 saw an 8.1% year-on-year increase, indicating potential signs of a recovery from the negative impact of COVID-19 on the job market. This according to research just released from TransUnion, which examined trends of Hong Kong employers using financial probity checks during their recruitment and compliance process.
As a part of background checks on potential employees, employers may examine the financial background of a potential candidate, including their payment, debt and bankruptcy records. In certain highly regulated industries such as financial services, banking and insurance, conducting these checks is often a compliance issue for employers to assess whether the preferred candidate meets the regulatory requirements for working in their industry. The check can take place at the point of hire as well as throughout the entire employee lifecycle through the process of rescreening.
In Hong Kong, around 80% of employee reference requests include credit checks, according to Sterling RISQ. Credit checks are increasingly embedded in the talent recruitment and acquisition process across multiple industry sectors, regardless of seniority and salary. Though it is primarily mandatory in the financial services industry, more employers across markets, industries and management levels have introduced these checks in the last decade. Irene Foo, Director, Consumer Interactive, TransUnion, said, “Credit checks are becoming a reliable reference source for employers evaluating a potential candidate, serving as an indicator of their trustworthiness. The risks are perhaps becoming too big for recruiters to ignore.”
While credit checks are more common in senior-level recruitment, the same check is increasingly being conducted for front-line positions such as bank tellers, traders, relationship managers and mortgage brokers. In recent years, roles with access to sensitive proprietary, financial information, or even those holding some form of monetary responsibility such as IT, HR, accounting, and secretarial, are now likely to require a credit check.
Elizabeth Fitzell, Managing Director APAC, Sterling RISQ, said, “Having a good credit score is extremely important, especially for those taking up financially related roles. It provides employers with the assurance that the candidate is financially healthy and able to protect the integrity of their position. It also creates a safe working environment for the workforce and minimises the risk of internal fraud, which costs companies billions annually.” She added, “In most locations in APAC, including Hong Kong, companies will consider withdrawing a job offer based on a negative financial probity check.”
Paul Arkwright
Publisher
