More Companies Using Extensive Background Checks Of Management Prospects In Hiring Decisions

Posted by Milton Recht:

From The Wall Street Journal, "What Employers Don't Know Can Hurt You: Skeletons in Your Closet Could Haunt Your Job Prospects" by Joann S Lublin:

Corporate-investigation firms say they now cast a wider net when they probe management prospects. They examine run-ins with foreign regulators, speeding tickets, divorces, felonious relatives–along with regular visits to the local bar. Extensive vetting can cost employers up to $50,000.

About 33% of employers review at least 10 years of credit history for recruited executives, up from 23% in 2010, concludes a 2012 poll by the Society for Human Resource Management. The most important reasons for those checks include the need to reduce or prevent theft and embezzlement plus reduce liability for negligent hiring. That may be as employers look for a pattern of credit problems as opposed to issues related to the 2008 downturn, says Mr. [George] Boué [human resources vice president for Stiles Corp].