Katlego Sekhu
The recent uproar over tougher job tests, as reported by the Sowetan newspaper, has shed light on the controversy surrounding mandatory entry requirements into the public service, which include checks on financial obligations.
The issue has also sparked a broader discussion on why companies conduct credit checks before hiring employees across various sectors. Independent Political Analyst and Chartered Accountant CA (SA), Khaya Sithole, joined the conversation on 959 Breakfast to provide insights into the rationale behind these practices.
Sithole emphasized that the necessity of credit checks largely depends on the nature of the job a person is applying for. He explained, “If a person has a poor track record of managing their own finances and is then given the responsibility to oversee the finances of an organization, there is an elevated risk that the temptation to settle one’s affairs using the company’s resources will always be there.” Sithole highlighted that while certain job profiles and industries might justify such checks, there are limited justifications for employers to delve into an individual’s personal financial history for most roles.
He continued, “Essential investigation of your conduct prior to employing you and then using that as a basis on whether to employ you or not. For most jobs, it’ll be difficult to justify that type of intrusion.”
Furthermore, Sithole pointed out the challenge of preventing such intrusions, even though many companies lack substantial grounds to justify them. During the onboarding process, companies often gather personal information about candidates. As individuals progress to the final stages of the application process, they unwittingly sign away certain rights, allowing companies to independently conduct credit checks.
This information can then influence the hiring decision without being explicitly communicated to the candidate. Sithole cautioned job seekers against prematurely sharing sensitive information, suggesting that their ID numbers need not be included in their CVs until the later stages of the process.
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