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-
it's 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. So, how does all this work? When you use a our shareholders and other employees. For
background 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, contact
compliant, you are transferring a part of the Ron Nieman.
hiring risk to another party. The company is
responsible for knowing which information is
applicable and can be included in the report.
You don’t have to worry about discovering
information you are not legally suppose to
know about the person.
Another advantage is that if the search uncov-
ers unpleasant information, the unsuccessful
applicant has to work with the screening Finding People Who Make A Difference®. At
company, not you, to correct or challenge the Sanford Rose Associates – Dallas North, we
information. However, you do have to notify are committed to helping you achieve your
the applicant if adverse information in the company goals and objectives.
report affected your employment decision.
Overall, the burden is on the applicant to Ron Nieman is the Principal of Sanford Rose
work with the (3rd party) company to request Associates – Dallas North, an executive search
any 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 telecommunications
amounts of information on potential new and electronic security. He has held senior
hires. It requires all of us who are involved in positions with multinational corporations and
presenting, 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 dollar
mation to have before we extend an offer. company living in Singapore as well as man-
aging one of the company’s $300M divisions
As before, the hiring manager is ultimately located in San Diego. Ron has been a CEO and
responsible 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 of
nificant. 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.com
direct cost. The cost of disruption of organi- www.sanfordrose.com/dallasnorth
zational performance, customer communica- 214.504.0777
________________________
tions and relationships, leadership productivi- © 2011 SRA International, Inc. All rights reserved, including electronic
ty 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 make
sense 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 |