Human Resources Challenges Essay

1140 words - 5 pages

Introduction

Some of the challenges that organizations' human resource department face are, operations, policies and procedures and selecting highly qualified candidates. Management depends on human resource department to select candidates through recruitment, interviewing and application screening. I will discuss a few methods that human resources departments use to select potential candidates through credit reports and social media.

Credit Reports

Organizations have been using traditional recruitment methods, placing help wanted ads in newspapers to look for potential candidates. Human resource department application selection process requires candidates to go through an interview, background check and credit investigation. The reason organizations do a credit investigation is to make sure candidates are creditable and trustworthy. By conducting a credit investigation human resource department can compare information on a candidate’s profile to make sure it coincides with information on their credit report. A good credit report would consist of no judgments, bankruptcy; pass due payments or any repossession. Base on the application process, this would be the ideal candidate for the job. Organizations will not hire candidates if their credit report, reported any negative blemishes. Organizations would be afraid if candidates had a lot of blemishes on their report, it would cause issue for the company, especially if their job required a candidate to handle money transactions. Organizations view candidates as if they were having trouble handling their personal money affairs, they could not be trust to handle the organizations reasonability’s. Human resource department would not hire a highly qualified candidate with blemishes on their credit report even if they were the best candidate for the job. Instead they would hire a candidate with good credit but less qualified. According to Fairley, J (2010, November) the primary reasons for credit background checks: to prevent theft, to reduce legal liability for negligent hiring and to assess the trustworthiness of applicants. A personal example; as a manager for a finance company, one of the job responsibilities was to hire new employees. Conducting interviews and back ground check. If a potential candidate scored high on the interview, as a manager, the application would be referred to human resource department to order a credit investigation report. Working as a financial counselor it requires for candidates to have a good credit report because they are advising other consumers on how to manage their money. It would be hard for a person to advise someone else on the importance’s of money management, when they can’t manage their own.

Due today’s economic hard times, consumers have lost their jobs and reduction in income. Consumers are using credit cards as a means of providing for their household. With little income, consumers are late on their mortgage payment and credit card...

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