Conducting Due Diligence and Background Checks

In our last article, “Evaluating Technical and Soft Skills for a VP of Finance” we explored effective strategies for assessing financial acumen, leadership abilities, and problem-solving skills to identify top finance leadership talent for your organization.

By implementing these strategies, you’ll be able to develop key strategies for identifying top talent in finance leadership roles.

To reinforce the leadership search and interview process, we’re going to provide some insight into getting to know top candidates beyond the interview process to complete their profile.

When hiring a VP of Finance, or any leader in your organization, a thorough due diligence is crucial. 

This process, while time-consuming, is essential for protecting your company's financial health and integrity. 

Let's explore the key steps in this important process.

Verifying credentials and past employment is the foundation of due diligence. 

This step involves:

1. Confirming educational qualifications directly with the institutions.

2. Contacting previous employers to verify employment dates and responsibilities.

3. Checking the status of professional certifications, such as CPA licenses.

These checks help ensure the candidate's qualifications align with their claims and your requirements.

Reference checks provide valuable insights into a candidate's performance and character. 

Consider these approaches:

• Reach out to provided references, but also try to seek additional perspectives through mutual professional connections; organizational, alumni, industry associations are good places to start.

• Ask specific questions about the candidate's financial expertise, leadership skills, and ethical decision-making.

• Inquire about how they handled challenges or disagreements in previous roles.

The answers from our suggested interview questions could be added to their profile. Check it out here: The Interview Process for VP of Finance Candidates

This comprehensive approach offers a more rounded view of the candidate's capabilities and working style.

Background checks are another critical component. 

These typically include:

• Criminal record checks

• Credit history reviews

• Verification of any regulatory sanctions

While these checks might seem extensive, they're important safeguards when hiring for a high-level financial position. 

It's also worth considering positive aspects of a candidate's background, such as volunteer work or industry recognition, 

Assessing cultural fit is equally important. 

This involves evaluating how well the candidate's values and work ethic align with your company's culture. Consider posing ethical scenarios to understand their decision-making process and values. 

For example:

• How would they respond to pressure to manipulate financial reports?

• How would they handle discovering questionable, long-standing accounting practices?

Their responses can provide valuable insights into their ethical standards and how they might navigate complex situations within your organization.

We understand that this process can feel overwhelming, but it's an investment in your company's future. A thorough due diligence process significantly reduces the risk of a poor hire, which can have far-reaching consequences for your organization's financial health and reputation.

Remember, the goal is not to find a perfect candidate, but to gain a comprehensive understanding of the individual you're considering for this crucial role. By approaching this process with diligence and empathy, you're setting the stage for a successful hire and a stronger financial leadership team.

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Contact us to create your exclusive VP of Finance hiring strategy

Chris Holt, Managing Director

Email: chris@focustalentgroup.com

Phone: (909) 680-0632

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