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The holidays are here. And I must admit, I'm
reaching for the plastic probably more than I
should! I know I have to pay for all of this fun
in January, painful though it may be.
I think almost everyone I know has gotten
themselves into more debt than they would like
at one time or another — maybe overextending
themselves to move into a bigger home, taking a
dream vacation or just sending those kiddos off to
college! Let's face it, credit is easily available and
living the American dream is increasingly more
expensive. And that's a deadly combination.
But what happens when you find out that a candidate
you are interviewing, or an employee you have hired,
has gotten himself into so much debt that it has
affected his credit rating and, hence, his
ability to get a company credit card? And, you
need that employee to travel and incur real
expenses doing his job?
Here are a few thoughts that can help you determine
how to proceed:
- Don't Jump to Conclusions
Sounds simple, but you'd be surprised how easy it is to
do just that in this situation. Sit down with your
employee and ask him if he thinks the credit
report is accurate. If it is, try to
ascertain the circumstances around the reason
for the report and his denial of credit.
Remember that
sometimes it may have been circumstances
beyond his control that caused a mediocre or bad
rating. (My daughter was the victim of identity theft a
few years ago and I can tell you from personal
experience how painful and difficult it was to clear that
up.)
- Put It Into Perspective
While you should not ignore the fact that the credit
report might be lower than what you would like,
remember that having a less than perfect credit
rating is not on a par with being "The Unabomber!"
For most jobs in your organization, this credit
indicator will have absolutely no bearing on how your
employees actually do their jobs.
- Make Your Own Decision
There are no pat answers in a situation like
this. This is where you rely on your gut and your
skills as a manager. Some companies issue a
cash advance for all travel and purchase airline tickets
directly, while some managers I have spoken with
have the company guarantee the credit card up to
a certain dollar amount. As a matter of fact, I
recommend this option as the easiest and the best for
"saving face." Your employee will feel trusted and
I'm
a firm believer in trusting someone until they prove
you wrong.
Your faith in your employee will go a long way
towards earning the loyalty that you want. And,
in
the best of cases, you'll help that successful employee
make a better future with a better credit rating!
Have you got other creative, successful ideas
for handling this kind of situation? Click "reply" now
to tell me!
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