BADM 7070 Chapter : Risks And Benefits Of Credit Reports As A Selection Device 1
Document Summary
Risks and benefits of credit reports as a selection device. An inference that may be made from a bad credit report is that since an individual has been irresponsible in handling their financial matters, then he/she will be an irresponsible employee. In essence, a bad credit report is a sign of low conscientiousness and conscientiousness is a significant predictor of job performance. However, recent research by dr. jeremy bernerth at lsu has demonstrated a positive correlation between individual fico scores and supervisor ratings of job performance. This research also demonstrated that fico scores were significantly correlated with the big five personality traits of conscientiousness and agreeableness. As an individual"s conscientiousness decreases and agreeableness increases, fico scores decrease. Dr. bernerth"s research failed to find a significant correlation between fico scores and counterproductive behaviors such as theft.
