Why Executive Background Checks Have Become So Important in 2019’s Global Economy

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Research shows that American businesses hire new executives every year in an attempt to grow and expand their business. However, almost 50% of those businesses fail to screen executives in the same way that they screen potential employees. Some businesses do not run any background checks at all before hiring a new executive. Here is a look at why you should consider running an executive background check before you make your next hire.

No One Is Perfect

Many people feel that it is unnecessary to screen executives because they have public networks and backgrounds. However, some executives have had issues arise on their background checks. In the past, some executives have not been truthful about their job experiences or their education. Some executives have even attempted to hide their criminal history in an attempt to seek employment.

Some analysts point out that executive positions have a great reputation in the business world. Many people believe that executives are perfect and incapable of doing anything wrong. Executives command respect because of the authority that they represent. Many have argued that running an executive background check is disrespectful. Despite this claim, business owners often want to know exactly who they are hiring.

When businesses assume that an executive candidate is truthful, they are putting everything at risk. Executives have a lot of power. Putting that power in the hands of the wrong person can be damaging. There are multiple stories of famous people whose careers and reputations were ruined when it was revealed that they fabricated the truth in order to get hired. The allegations also impacted the reputations of the companies that hired these people. These embarrassing situations could have been avoided through an executive background check.

Types Of Lies

Many executives rely on the same types of lies when they seek to boost their resume. They will lie about their education, training, awards, certifications, and employment history. Due to their networking, it is easier for executives to lie about their recommendations and references. Finances is another area where many executives have tried to fabricate the truth. Some executives have lied about any debt or credit issues that they have. Some executives feel that they are forced to lie because businesses would be hesitant to put them in a leadership position if they have financial problems.

Executives may also seek to hide any sexual harassment allegations, especially if they resulted in a conviction or settlement. However, the issue could lead to even more problems if it gets leaked to the press. The last thing that any business wants is to deal with a serious scandal.

Serious Consequences

Due to the popularity of social media, executives are under the public microscope. If any negative news were to leak out concerning an executive, they open themselves up to be harassed, which is a PR nightmare for a business. The negative publicity can impact a company even after the executive is no longer employed. Failing to administer an executive background check has resulted in businesses having to deal with the aftermath of fraud and embezzlement, among other serious crimes. Research has shown that executives can cost the businesses that they work for a substantial amount of money when they get in trouble. Some businesses may have their entire model ruined as their customers wonder why this person was hired into a leadership position in the first place.

Executive Background Checks Are Important

Due to the importance of the position, running an executive background check is different from running one on regular employees. The background check is more extensive. Most businesses prefer to start with basic identity verification. Next, they will look at the executive’s past employment history, as well as their educational history. Businesses will look to make sure that there are no red flags regarding the executive’s degrees and certifications. Businesses will then look to perform multiple criminal checks. Most businesses will check at the state, federal, and national levels. Credit checks are important, as businesses inquire to see if the executive has a history of cashing bad checks, bank fraud, or any unpaid taxes. Reference verification is something that businesses look at to ensure that the executive didn’t receive an altered reference from a peer who likes them. Reference verification allows businesses to see if the reference is an accurate representation of the executive’s performance.

Corporate Resolutions

Corporate Resolutions can assist businesses by performing thorough executive background checks. Corporate Resolutions has a team of investigative experts that can locate important information when conducting an executive background check. Corporate Resolutions will cover multiple jurisdictions to make sure that businesses are fully aware of each candidate in the hiring process. Corporate Resolutions conducts investigations in more than 75 countries around the World. Corporate Resolutions will conduct interviews with both personal and professional references of each candidate being considered. Learn more about their executive background check process on Corporate Resolutions website here:

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