Ceo Update Aug Sep 2011


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Ceo Update Aug Sep 2011

  1. 1. CEO BRIEF A PUBLICATION OF SANFORD ROSE ASSOCIATES – DALLAS NORTH August/September 2011 Route to: Social Intelligence Compulsory due diligence IT’S PEOPLE WHO MAKE THE DIFFERENCE In May of this year, the FTC gave a green light I n a recent New York Times article, the top- for third party companies to run a different kind of background check – your Internet and social media background complete with a 7 ic of providing Social Media Audits for new year history. hires was addressed. Most of us understand that social media is all about networking, Consider why it might be a good idea to have sharing, being authentic and building rela- a Social Media Audit done for your next new tionships; however, the limits continue to get hire. These audits screen for a handful of tested and sometimes people take sharing a things that you would more than likely want little too far. We have all witnessed the fiasco to know before making a hiring decision – not of Congressman Anthony Weiner. In addi- only the negative aspects such as if the candi- tion to its many benefits, social media has also date had a history of aggressive or violent acts brought down the powerful and the not-so of behavior, unlawful activity, discriminatory bright. But, can it be used as a tool to help us activity (for example, making racist state- make better hiring decisions? In a nutshell, ments), or any sexually explicit activity, but yes! also positive facets such as; how active is the For the most part, companies conduct a stan- candidate in their chosen clubs or charities; dard, pre-employment background check on are their blogs, public speaking or external all new hires as part of their pre-employment engagements received positively and fol- due-diligence process. These background lowed by an industry audience; and are they checks typically include past employment an industry thought leader. verification, credit score, and criminal history The bottom line is that these kinds of services checks. The type of information included in a provide information that is valuable and ac- background check depends to a large degree tually makes a lot of sense in providing on the sensitivity of the job the candidate has another datapoint for screening candidates. applied for. For example, somebody seeking Certainly employers would be remiss not to employment at a minimum wage job would “Google” job candidates for example, before be subject to fewer requirements than some- making an employment offer. Today, there body applying to work in law enforcement or are more comprehensive tools available than a jobs related to national security and defense. simple web search. Many companies agree And of course, some senior executive place- its far better for the employer to have an all- ments require a more comprehensive back- inclusive background check that includes a ground check that utilizes the services of pri- full-scrape of social media activities and on- vate investigating firms. line communications before making a deci- sion or an offer to a candidate.1 A PUBLICATION OF SANFORD ROSE ASSOCIATES – DALLAS NORTH |
  2. 2. So, how does all this work? When you use a our shareholders and other employees. Forbackground screening company, especially more information about Social Media Audits,one that is Fair Credit Reporting Act (FCRA) or to receive an example of an Audit, contactcompliant, you are transferring a part of the Ron Nieman.hiring risk to another party. The company isresponsible for knowing which information isapplicable and can be included in the report.You don’t have to worry about discoveringinformation you are not legally suppose toknow about the person.Another advantage is that if the search uncov-ers unpleasant information, the unsuccessfulapplicant has to work with the screening Finding People Who Make A Difference®. Atcompany, not you, to correct or challenge the Sanford Rose Associates – Dallas North, weinformation. However, you do have to notify are committed to helping you achieve yourthe applicant if adverse information in the company goals and affected your employment decision.Overall, the burden is on the applicant to Ron Nieman is the Principal of Sanford Rosework with the (3rd party) company to request Associates – Dallas North, an executive searchany corrections to the information gathered. firm filling mid to senior-level positions with-Ultimately, having this information gives the in the telecommunications and IT industries.decision maker more data to make better,more informed hiring decisions. No doubt In addition to his executive search expertise,we are living in a world where there is an Ron has over thirty years of general manage-amazing amount of data and information at ment, technical management and market-our fingertips. This includes enormous ing/sales experience in telecommunicationsamounts of information on potential new and electronic security. He has held seniorhires. It requires all of us who are involved in positions with multinational corporations andpresenting, selecting and hiring, to be more start-up companies. Ron managed the Asia-attentive about what is really essential infor- Pacific operations for a large billion dollarmation to have before we extend an offer. company living in Singapore as well as man- aging one of the company’s $300M divisionsAs before, the hiring manager is ultimately located in San Diego. Ron has been a CEO andresponsible for making good hires. Having SVP for 2 different publicly traded compa-another tool to help make a good decision can nies. He earned his Bachelor’s Degree in Eng-go a long way. Consider the economic and lish from The University of Texas at Arling-cultural impact of making a bad hire - it’s sig- ton, and his M.B.A. from the University ofnificant. Estimates of the cost of making a bad North Texas.executive hire range from 3 to 5 times the“misfits” annual salary, and that is just the rnieman@sanfordrose.comdirect cost. The cost of disruption of organi- performance, customer communica- 214.504.0777 ________________________tions and relationships, leadership productivi- © 2011 SRA International, Inc. All rights reserved, including electronicty as well as loss of opportunity is even high- reproduction or alteration. Sanford Rose Associates is now in its 52nd year of Finding People Who Make a Difference®.er. (McCool, 2008)With all this in mind, not only does it makesense to take this extra step in our due dili-gence process, it is also our responsibility to 2 A PUBLICATION OF SANFORD ROSE ASSOCIATES – DALLAS NORTH |