How To Background Check A Chief Financial Officer

Checking and verifying the credentials and background of a potential employee is of paramount importance. More so if the candidate in question is being considered to head a vertical of the company. Positions like CEO, CFO, and COO are the pillars on which the policies and progress of a company depend. As these positions have maximum control over every decision taken in the company’s business interests, poor hiring can lead to devastating consequences. 

For instance, a CFO (Chief Financial Officer) shapes the commercial roadmap of a company and is responsible for the financial well-being of the organization. As the stakes are too high, a thorough CFO background check is imperative and proper steps have to be taken to get it absolutely right. 

Let’s discuss how to carry out background checks for CFOs:

Cross-check the Resumes of the Candidates:   

Hiring a CFO for a company requires more extensive background screening than that for lower-level positions. However, as per a survey, 49% of employers assume that CFOs don’t lie on their resumes. In addition, about 26% of employers hire based on gut feeling. Also, 25% of employers accept that if they had done thorough CFO background checks, then the current CFOs wouldn’t have been hired in the first place. Therefore, carrying out a rigorous background screening using an expert service provider plays a crucial role in onboarding the correct candidate. 

Deploy a Thorough Background Screening Procedure:

Ensure a fool-proof CFO background screening procedure is prepared well in advance and taken approval from the board. The CFO background checks should be the most rigorous out of all the staff background checks. Leave nothing to chance or gut feeling and ensure all aspects are covered. In addition, remove hesitation and make the hiring process comprehensive. For instance, these checks may require the teams to assess the credit history of a candidate, including criminal background, education verification, reference check, and more. 

Maintain Confidentiality at all Times: 

Confidentiality is crucial when hiring a CFO, as any information leak can invite actions from regulatory bodies. It may also negatively impact attracting talented individuals. Hence, CFO background checks should adhere to the relevant compliance standards, including GDPR protocols. Also, it is crucial to inform a candidate before conducting the background check and seek their consent. 

Assess Skills and Credentials to Hire the Right CFO: 

A thorough CFO background check is not only verifying the qualifications and experience; assessing skills and credentials is also crucial to ensure the right CFO is hired. The hiring team must provide a candidate’s mission-critical experience validated along with other details. Ensure the candidate has successfully managed to counter complex hurdles and challenges and brought success to his previous companies.

Consider a Third-party Service Provider

The amount of checking needed during CFO background checks can be taxing and time-consuming. Instead of involving in-house staff, hiring an expert background screening service provider can be a great choice. They have trained professionals in their team and use the latest technology and AI-enabled tools to conduct the background screening while minimizing manual intervention and the TAT. These companies are also home to Video KYC solution which can aid in completing digital onboarding while confirming the personal details of a candidate.

Carrying out a CFO background check can be overwhelming and challenging for the HR team, but following the above steps can help find the best candidate. As a CFO can make or break a company’s future, a rigorous background check is paramount to ensure the company’s financial health is in the hands of the most suitable candidate.