Due Diligence – The Perils Of Cutting Corners

Lester Blades has always prided itself on “going the extra mile” on behalf of our clients when it comes to conducting Due Diligence on potential appointments.

It is disappointing that even in 2023 we still regularly discover something untoward or plainly false in what a candidate has presented in their application and/or interview?compared to what the independent due diligence has uncovered. To illustrate, in the last few months alone, the applications of two seemingly superb candidates for appointment, were undone because academic qualifications stated on their CV’s, they simply did not have. Similarly, we have seen the potential offer for an executive role withdrawn due to re-tweets that the candidate made on Twitter many years earlier, which were not aligned to the values of our client.

It rather begs the question; have no previous employers actually bothered checking the validity of what was presented on their CV or stated during their interview or what their internet “footprint” was?

Conducting thorough due diligence on potential recruits is a critical and essential part of the hiring process. It should always involve performing comprehensive background checks to verify the information provided by job candidates, in addition to ensuring they are a good fit for the organisation.

Some of the benefits of conducting due diligence on potential employees:

• Reduced risk of hiring the wrong candidate: By conducting independent background checks, employers can verify a candidate’s education, employment history, online footprint and criminal record, among other things. This significantly reduces the risk of hiring someone whose lack of integrity may cause problems for the company in the future.
• Increased confidence in hiring decisions: By conducting thorough due diligence, an employer will have greater confidence in their hiring decision. They can be more confident that the candidate they choose is qualified, trustworthy, and most importantly fits the culture and values of the organization.
• Compliance with legal requirements: You wouldn’t want to recruit a CFO who wasn’t actually a qualified accountant, nor would you wish to recruit a Company Director who was actually banned from holding such an office. By conducting thorough due diligence, you can ensure compliance with such requirements and avoid potential legal issues.
• Finally, there is the huge advance in recent years with the AI driven ability to conduct deep dive interrogation of social media profiles and internet footprints. These can highlight any issues and provide a comprehensive review of the online behaviour of a candidate, including extreme views, violent content, hateful/discriminatory behaviour, explicit content or illegal activities.

There is nothing more expensive than a poor appointment, particularly when it involves new executives or board directors. Conducting thorough due diligence on potential recruits is essential for any organisation looking to make informed appointment decisions. It helps reduce risk, improve safety and security, increase confidence in decision making, and compliance with legal requirements.

Author:

James Fairbairn – Partner