SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, is answering HR questions as part of a series for USA Today.
Do you have an HR or work-related question you'd like him to answer? Submit it here.
Do employers look at your credit report in the hiring process, particularly during background checks? How is credit information relevant to employment matters? —Melvin
Johnny C. Taylor, Jr.: Employers may find credit information relevant in certain instances. Depending on the role you are seeking or the industry you work in, an employer may include a credit report as part of your background check for the position.
While I can't speak to the exact circumstances you're facing, careers where responsibilities would include handling credit cards, cash or other company funds may warrant a credit check. Positions such as financial officers who have access to financial data or funds, and who have authority over managing large sums of money, will likely require a credit check.
A candidate's financial condition usually does not come into play unless the position involves handling company or client funds. In the event a credit report is deemed necessary, the discovery of bad debt may disqualify candidates from being hired. Bad debt is typically defined as having a past-due balance greater than 60 days, debt that has been referred for collection or debt written off by a creditor. Going further, if bad debt exceeds 10 percent of the open position's salary, it may be considered a risk regardless of when the debt occurred. However, debt more than five years old or debt that originates from student loan obligations or extensive medical care for immediate family is not generally considered a risk.
Employers should demonstrate a clear business necessity and job relevancy before running a credit check. Employers should also check state and local guidelines that may prohibit the use of credit reports as part of the hiring process. A detailed policy outlining when credit checks will be conducted should be established by employers that choose to do so.
Your concern is understandable, as credit reports contain extremely sensitive personal information. And indeed, there have been instances where companies have improperly used such information. There is even a possibility of discrimination if an employer uses credit checks as part of the hiring process, as this may have an adverse impact on protected classes. Know that, under the federal Bankruptcy Act, a filing of bankruptcy may rarely be used in employment decisions. Employers should be able to delineate a clear reason for obtaining your credit information, so don't be afraid to ask why they have done so. Good luck in your career search.
I am currently searching for a new position. In interviews, I know it's coming but I never have a great answer for the interview prompt "Tell us a little bit about yourself." What is the best approach to this interview question? What are interviewers looking for? —Jackie
Johnny C. Taylor, Jr.: Interviewers typically use this question as an icebreaker or to quickly get to know a candidate. Before responding, remember the interviewer most likely will have your resume in front of them, so try not to give a narration of your resume. It is really an identity showcase for your personality, values and reasoning. It provides the interviewer a glimpse of how you might fit within their workplace culture.
The best approach is to relax and be personable. A simple way to think about this question is to draw a line through the present, past and into the future of your career—connect milestones and goals so the interviewer can understand your career progression. Start by talking about what you currently do, and include a recent accomplishment. Then, bring up how your previous jobs have prepared you for this current opportunity. Lastly, share what you are looking to do in the future, and specifically why you are interested in the job you are currently interviewing for.
Here are some other tips:
- Consider the audience. Is this question from a recruiter, a panel of interviewers or a hiring manager? A response should be tailored based on who will hear it and what details they will be most interested in.
- Start the conversation by describing your key qualities. Some examples include being innovative, organized or self-motivated. Make sure it relates to the job, and be prepared to provide examples.
- Keep it brief. Don't discuss your entire work history and life story. The point here is to only share information relevant to the position for which you are interviewing. The interviewer may ask you to elaborate when they get to their standard interview questions.
- Be professional. Avoid disclosing information about current workplace conflicts or a family situation that has led you to seek new employment, and refrain from complaining about a current supervisor. Appropriate personal information to reveal may include a geographic location change resulting in the need for new employment, a desire to seek professional growth or change careers, or an interest in taking on a different role.
- Shine! Beyond outlining your previous responsibilities, highlight your big accomplishments. Talk about when you went above and beyond, and discuss how you successfully accomplished a task or project despite challenges. Remember, you are trying to stand out from other candidates.
Seize your only shot at making a good first impression with an interviewer! There are no do-overs. Be personable and pleasant, take pride in your achievements, and smile when sharing them. Put your best foot forward!
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