Risks associated with recruitment
Recruiting new personnel
Recruiting new personnel is risky for the company. Indeed, if the person is not suitable it is not always easy to change employee. The human being is at the center of the company, its decisions are based on the affect, the ego, the look, packaging and discourse. But in business it is essential that a person is able to take a decision in full knowledge of the facts. Thus it is necessary to minimize the emotions, risk aversion or enthusiasm at a decision. But when recruiting a person, the feeling, intuition is often at the center of the decision.
Thus, during recruitment for key positions it is necessary to do a due diligence on the person, in order to minimize the risks to mistaken identity. The Foreign Corrupt Practices Act (FCPA) American and the OECD Convention on the fight against corruption require companies to exercise greater vigilance and perform due diligence before hiring key staff, or contractors.
Indeed, it is necessary to check the person’s skills, and the authenticity of its certificates. But it is even more important to check its reputation, so the company does not take risks by hiring a politically exposed person, for example, or do so knowingly.