Five Essential Pieces for New-Hire Checks

Wayne Scholze, CUNA Mutual Group
April 7, 2005

When hiring new employees, it pays to do a complete background check. Cutting corners can hurt your credit union's bottom line if you discover too late that a new hire has a criminal record, isn't bondable, or cheats your credit union.

According to experts, here are five essentials you need to investigate:

The employment application. "Screen for employment gaps, reasons for leaving previous jobs, and short-term employment at other financial institutions," says Karen DesRoches, Virginia Credit Union’s employee relations and recruitment assistant vice president. If there's an employment break of a year or more, ask why. Verify education credentials, especially for management positions.

Criminal reports. The cream of the crop is the FBI fingerprint database check because it's the most thorough. It's best to obtain fingerprints during the initial interview.

Social Security numbers. Individuals who falsify their applications sometimes will use a fake number so they won’t be discovered. Make sure you have a match.

Previous employment. Whenever possible, require candidates to list at least two previous employers. Then check with them. A key question to ask is, "Would you rehire this individual?" A "no" is a red flag to probe further.

Credit information. A credit check can show how the applicant handles money, a key question for an employee of a financial institution. Rules regarding whether you need to get permission vary from state to state. Credit unions may want to include this in the release contained in their employment application. Consult an employment attorney in your state when making any change to your employment application.

Screening out high-risk individuals can help your credit union hire and retain the best employees, the ones who will contribute to your success and profitability.

Wayne Scholze is bondability manager for CUNA Mutual Group. This article first appeared in CUNA Mutual Group’s online publication Added Dimensions at http://www.cunamutual.com/cmg/addedDimensions/articleSearch/0,1778,9054,00.html and is reprinted with permission.