New Zealand writer enlightens readers on needs for background investigations

By Gill South

In a tight labour market, it can be tempting to hire someone who can start as soon as possible, without doing a thorough background investigation of their references, says Peter Sherwin, New Zealand spokesman for Grant Thornton, which recently published a survey on undiscovered fraud in New Zealand private companies.

Some people are lax when they take someone on. "It's, 'Oh yeah, I know that firm, when can you start?"'

And some of us may have grown up with the idea that it was fine to "massage the facts" when writing our resumes. Once we had our foot in the door, it wouldn't matter any more; we'd just work hard and prove they were right to hire us.

But these days, embroidering details of your employment history is not a smart move. Increasing numbers of companies are using what are called pre-employment background screening organizations - companies that are trained to root out the anomalies in people's employment histories. As a result, you are unlikely to get offered the job - and may suffer some embarrassment as well. If there's a suggestion that you have blatantly lied about a key factor, like your qualifications, it can even lead to police investigation, as in the admittedly extreme case of Immigration Service head Mary Anne Thompson.

New Zealand companies are, like others around the world, taking recruitment more seriously in a market where human capital is so precious.

What they want to check is: has this person delivered in their previous jobs and what will they deliver in the future? Hence the increasingly common use of psychometric checking and professional reference checking. As well as employment history and qualifications,these companies look at people's integrity and honesty, and financial backgrounds. Have they ever been bankrupt? Perhaps not the best life history for a chief financial officer.

And a tip for job-seekers: make sure your past employers really are fans of yours. When checking references,quite frequently the employer will say: "They're not that great."

You might assume that background check companies are used just for top management but they may actually be working right across the board, from the receptionist to the general manager for some companies.

Even if the person is reasonably well known to the management, they are still using background check companies. executive boards don't "want any surprises". That's why there is a procedure in place.

Companies prefer to find out about a problem, rather than have a journalist discover the issue.

Be warned about changing your story or reinventing yourself when you go for a new job. The problem in New Zealand, of course, is that if you have blotted your copybook, you can never escape. Background Investigations are very important for people who have "access to the cheque book", such as chief executives, chief operating officers and chief financial officers.

Some common problem areas, such as the person's behaviour in the workplace, are often not to be found anywhere on a resume and those are the things that can make someone a poor fit. Do they use intimidating tactics in the office? Do they regularly slope off home at 4.30 to go to a "meeting"?

Posted by Pebi Services President Tyra Hearns