Reference checking

Why reference checking

Industry facts:

• 95% of companies hire an external consultancy company to fill an executive position. This means a high consultancy fee and a two-three month recruitment project
• The recruitment companies have a vested interest in the person you hire
• Sympathy and affinity affect the recruitment process whether an internal consultant or an employee is furnishing the new candidate
• The Guarantee period is often too short to cover integration and the length of time it takes to decide whether a candidate is a good or a bad fit for your organization
• Frequently, after six months or one year it becomes obvious that a COO or CFO has not brought benefits you had been hoping for
• During the past three years, nearly 40 percent of human resources professionals reported an increase in the amount of time they spent on reference checking, according to the 2005 Reference Checking Survey released by the Society of Human Resources Management
• According to The Wall Street Journal, 34 percent of all applications contain outright lies about experience, education and ability to perform essential job functions
• As many as 30 percent of job seekers exaggerate their accomplishments, and about 10 percent seriously misrepresent their backgrounds, according to The Complete Reference Checking Book
• On average, at least half of all new hires "don’t work out", according to Fortune
• According to Recruiting Times, it costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee and $40,000 to replace a senior executive

Possible risks implied by a new hire or a new partner:

• Business risk - poor results delivery
• Financial - high recruitment and salary expenses. The candidate works for a year during which the performance is under the initial expectations and after a year the collaboration comes to an end. Great financial and psychological loss
• Fraud - money leaks, especially for financial positions
• Image - the company's image is affected. It can negatively influence clients, investors, partners and ultimately the employees
• Confidentiality breach or patents - can range from confidentiality breach to selling top internal managerial and manufacturing secrets
• Organizational - a bad personality can have a negative impact on the employees especially if the person has line management duties
• Ethics - conflicting interests; the candidate has a personal interest in the same domain the company operates
• Fiscal and court record - troublemakers; certain people are looking for ways to sue the company in order to gain financial benefits
• Cultural risk - inability to adapt to a different culture (e.g. the candidate originates from a different country)

Why you need an independent reference check

• Get a 100% objective information about your decisions. External recruiters are biased and often have a vested interest in the person you hire
• Reduce the risk of making wrong decisions that might negatively affect your business – cost of opportunity
• Get insight into your candidate's leadership and motivational style
• Correct evaluation of your future employee. Increase your confidence in your new employee
• Speed up the integration period
• Clarify developmental areas/weak points that may require some support or training
• Decrease/Avoid unwanted turnover - develop a long and reliable relationship with your board members or other team members

What we investigate

Basic CheckUP® is suitable for non-managerial and technical positions. Duration: 3 working days

Standard CheckUP® is suitable for low management positions. Duration: 5 working days

Extended CheckUP® is suitable for middle management positions. Duration: 7 working days

Executive CheckUP® is suitable for senior management and executive openings. Duration: 10-14 working days

Business Partner CheckUP® is suitable for new business partners. Duration: 14 working days

Education Verification (International or Romanian education) - we investigate the university degree, master, MBA and PhD. Duration: 3-5 working days

Independent Exit interview performed for all kinds of employees (managerial and non-managerial positions) assures greater neutrality in comparison with those conducted from your own resources. Duration: 3 working days