The Rise of Executive Background Checks

With the recent corporate scandals of Enron andextensive background checks. Many of them feel
WorldCom, the popularity and necessity ofas if their network of peers is enough to get the
executive background checks has greatlyinformation they need and may neglect to further
increased. In order to protect themselves frominvestigate a potential employee. The Wall Street
potential disasters later on, many companies areJournal suggests that many top-level hiring
now requiring extensive investigation onmanagers may ignore the reference list provided
prospective executives to verify theirby the would-be-executive to utilize their own
employment and educational history as well asconnections in their past companies.
information regarding any past wrongdoings.Whatever the reasoning behind conducting
As with any other type of pre-employmentbackground checks, employers need to be aware
background investigations, employers need toof the Federal and State laws regarding such
have the appropriate disclosures available.investigations. Most reputable investigation firms
According to Federal law and the Fair Creditadhere strictly to these guidelines. Using one of
Reporting Act, applicants must sign and datethe top firms can save headaches in the future
specific disclosures regarding the various types ofwhile being sure that the information is fair,
background checks employers desire. It isaccurate and thorough. The employers
important to respect the privacy of potentialthemselves, however, can obtain some
employees while maintaining the company's hiringinformation. Educational references can be verified
standards.by contacting the academic institution, work and
Although executive-level background checks aresalary history can be obtained by contacting
becoming increasingly more popular, there may stillformer employers, and character references can
be some hesitation as to how far to take them.often be sought by contacting various people who
Many high-level executives seem to think of theirknow the prospective employee. Regardless of
atmosphere as more of a society, orthe method used, it is certainly in the company's
'country-club' feel. They may not feel comfortablebest interest to know who is working for them.
about performing checks on executives and inIn the case of top-level management, an
many cases, do not feel it is necessary. Humanexecutive background check is necessary and
Resource managers in the executive level seemvital to the ongoing success of the establishment.
to also have some hesitations to conducting