DOING HOMEWORK ON CANDIDATES: THE NEED FOR THOROUGH VETTING

Welcome to the February 2017 edition of our newsletter! In this issue, we’ll examine the importance of thorough pre-employment due diligence, using a recent case study.

DOING HOMEWORK ON CANDIDATES: THE NEED FOR THOROUGH VETTING

Hiring candidates at all levels can be a time-consuming endeavor, and the due diligence required is no exception. While many firms have made scans of a candidate’s social media a routine part of this process, with good reason, traditional research methods still apply.

Take the recent example of businessman Wilbur Ross, recently confirmed as U.S. Commerce Secretary. Ross, an investor in distressed companies with decades of experience, has undoubtedly amassed a sizable portfolio of public records information to accompany his investment holdings. When submitting materials to the U.S. Senate Commerce Committee, Ross reportedly failed to disclose a civil suit filed by a former partner, with Ross’ attorney stating that it was confused for another action brought by the same plaintiff, also against Ross.

THE NEED FOR DIGGING DEEPLY WHEN EXAMINING A CANDIDATE’S PAST

While Ross’ attorney took the blame for the oversight, the committee itself did not have a perfect record on the matter, reportedly failing, in its own due diligence efforts, a second lawsuit, which Ross also reportedly didn’t disclose on his questionnaire, brought by investors against Ross. The purpose of the outside due diligence is to verify items disclosed by the candidate and, perhaps, identify other items which may have been omitted. In this instance, both the candidates and the committee overseeing his nomination bore some measure of culpability, and in turn each highlighted the need for a thorough examination of a candidate’s life and career, no matter how daunting a task that may seem to be.