Checking an employee’s financial status can easily be done but is often overlooked by organizations. In Malaysia, it is not yet a norm to do credit checks on potential hires. Even organizations that do so, often do not continue doing regular checks. After all, once it is done during the pre-hire process, why should organizations continue regular checks on existing employees?
Throughout the years, Verity Intelligence has found that employees that are caught embezzling company funds are often motivated by desperation due to their own problematic financial situations. A recent article by The Star was about a man apologising while robbing a bank as he was facing financial problems.
By allocating a small amount for regular background checks on existing employees can serve as a useful preventive measure to safeguard a company’s interests.
What exactly is screened for in a credit status check? For Verity Intelligence, we generally check for a credit defaults, if the screened employee has defaulted on debts or if they have been declared bankrupt.
By understanding your potential and existing employees from a financial standpoint gives you the ability to make informed decisions on how to manage them. This way, it allows them to still contribute to the company while greatly reducing the risk that they could do something harmful to your business.
It also serves as a way to identify employees that just need a little help and thus, preventing the need to steal or embezzle. After all, a company’s well-being also relies on the well-being of its employees.
Stay tuned to www.verityintel.com! We’ll still be exploring what a complete background screening would entail!