IT & Tech Companies' Merger Recruitment Lacks Adequate Screening
Alarming trends have emerged in IT and technology companies' recruitment practices, particularly during mergers. A significant number of these companies are failing to screen senior leaders adequately, leaving them vulnerable to potential scandals and reputational damage.
A staggering 70% of IT and technology organizations do not screen senior leaders during mergers, compared to the average of 49%. This lack of scrutiny often extends to internal issues and personal recommendations, with 76% of companies relying on these for recruitment decisions. Shockingly, 50% of these companies trust leadership candidates without verifying their applications or interviews.
Consequences of this lax approach are severe. Over a third (30%) of merged organizations may face potential scandals due to insufficient screening. Moreover, over half (56%) of successful job applications contain errors, and 35% of HR directors admit to hiring people who would not have passed proper screening. In 29% of IT and technology firms, board members' qualifications, experience, or criminal records have never been checked. It's no surprise that over half (53%) of these companies have discovered lies during leadership screening, the highest rate among sectors.
However, some IT and technology companies are taking steps to address these issues. They implement thorough recruitment processes, including detailed resume screening, behavioral interviews, and cultural fit assessments. Some even use digital contract signing and standardized procedures to enhance transparency and professionalism, helping to verify candidates' qualifications and motivations.
The lack of adequate screening in IT and technology companies, particularly during mergers, poses significant risks. These include potential scandals, reputational damage, poor business performance, and inadequate IP protection. As reputational risk rises on the boardroom agenda in more than half (59%) of these companies, it's crucial they adopt robust screening processes to protect their organizations and stakeholders.
