POTENTIAL chief executives go through fewer employment checks than graduates applying for a new position.
According to a report by global due diligence company HireRight Ltd., The Untouchables: Protecting Your Organisation from Leadership Risk, senior leaders in many of the UK’s biggest organisations become untouchable as businesses fail to check their career history and qualifications.
Despite the obvious risks posed to a company’s reputation by such failures, approximately two thirds (66%) of businesses do not verify the background of new members of their executive teams.
And almost half of all human resources leaders know of organisations where the chief executive goes through fewer tests and interviews than graduates applying for positions at the same company. More worrying is the fact that more than a third (37%) know this to be the case in their own company. Most startling is the fact that one in three (31%) of chief executives do not undergo any type of due diligence check before their appointment.
Steve Girdler, managing director EMEA at HireRight, said: “Leaders are no longer figureheads only at carefully orchestrated press conferences. An entire organisation’s reputation can be damaged with a mobile phone image or an inaccurate CV, followed by the click of a mouse.
“Yet companies are putting the reputation and success of their entire business at risk by not carrying out suitable levels of due diligence on their board members – who clearly pose a significantly greater threat than graduates.” He added: “Reputational risk is rising up the boardroom agenda – but not fast enough.”
Mr Girdler added: “There’s no doubt that preventable mistakes are being made when recruiting senior leaders, risking irreparable damage to company reputation, operations, culture and performance.”
The full report is available to download at http://go.hireright.com/untouchablesblog