Employee Financial Wellness Now Component of Promotion and Hiring Criteria, Finds National Financial Educators Council Survey
LOS ANGELES, Feb. 23, 2017 /PRNewswire/ -- Searching for a career position today offers a host of new opportunities and at the same time poses a new set of challenges. Employers and hiring committees not only are looking for the right combination of knowledge, skills, education, experience, and cultural fit, but they're also delving more deeply into candidates' backgrounds – including their financial histories.
Between February 3 and 5, 2017 2,403 the National Financial Educators Council asked people across the US: "Have you ever been turned down for a job or promotion as a result of your credit or financial background?" The results indicated that 4.08% answered "Yes" – they have been turned down for a job or promotion.
Data from 6 different age ranges were analyzed, with each age group representing at least 400 respondents. Those aged 18-24 and 45-54 answered "Yes" at the highest rates, 5.3% and 5.2% respectively. Further, 90.5% of adults 65 and older entered "No" most often, with 90.5% saying they have not been turned down due to a financial background check.
For complete results of all age groups and analysis visit: https://www.financialeducatorscouncil.org/financial-background-check-surveys/.
In a previous survey conducted by the NFEC, HR Management Solutions and the Financial Literacy Action Network between March 25 and April 4, 2016 asked 1,165 adults aged 35 to 54 the same question 5.2% stated that they had been turned down for a job due to their financial profiles. This is similar to the 5.1% average of 35 – 54 year old in the latest survey that concluded February 5th 2017.
As the employment landscape becomes more competitive, employers have the luxury to be more selective about employees based on their financial backgrounds. A recent Council of Economic Advisers reported an 83% chance that workers earning less than $20 per hour will be replaced by robots. This represents almost half the US workforce, and this move toward automation will make the employment landscape even more competitive and highlighting the need for individuals to participate in workplace financial education programming.
In 2012 the Society for Human Resource Management reported that 47% of U.S. organizations check credit history for at least some positions. The leading reasons companies reported for doing credit checks were to prevent theft or embezzlement, and to reduce legal liability for negligent hiring. Although the Fair Credit Reporting Act stipulates that employers must obtain prior applicant consent for a credit check, refusal to give such consent would likely cast the applicant in a negative light regardless of his or her credit background.
"To prepare our current and future workforce for the coming changes to the technological and employment environments, it is imperative they gain money management skill sets. Employee financial education programs and other financial wellness initiatives are on the rise, which can help address this issue proactively. Being turned down for a job because of their financial background only contributes to the challenges they are facing," comments Vince Shorb, CEO of the NFEC.
In collaboration with financial institutions and organizations, the National Financial Educators Council conducts research to examine the associations between financial attitudes and behaviors and financial capability. Hosting think tanks, conducting research and serving as advocate for the financial education community represent part of the NFEC's agenda for improving financial wellness on the global stage. The NFEC's research goals include gathering empirical evidence about best practices in financial education to share with others in the space.
The National Financial Educators Council is a financial education resource provider, industry advocate, and thought leader. The NFEC gathers empirical data to uncover best practices to share with colleagues in the financial education industry.
Media Contact:
Trevor Stoll
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SOURCE National Financial Educators Council
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