Which group potentially endangers intellectual property the most: employees or hackers?
In the rapidly evolving world of IT and technology, the importance of maintaining a robust recruitment process has never been greater. With intensifying intellectual property (IP) battles, changes to prevent scandals and improve recruitment processes are becoming increasingly important.
According to recent research, over half (56%) of successful applications contain errors, and more than a quarter of IT and technology firms have people on the board who have never had their qualifications, experience, or criminal record checked. This inconsistency in leadership checks, particularly during mergers and acquisitions, may contribute to leaders not being checked more consistently.
The survey revealed that in over half of IT and technology companies, screening has exposed a leadership lie - the highest of any sector. This highlights the need for IT leaders to ensure they have a clear process in place for carrying out due diligence on candidates, as appropriate to the level of risk posed by their position.
HireRight's Quarterly Candidate Health Check shows that people at any level are capable of embellishing the truth, either because they need to secure a job or because they intend to cause harm. This underscores the need for thorough background checks and structured risk management to minimize such risks.
The inconsistency in leadership checks during mergers and acquisitions may also be a concern. Organisations in the IT and technology sector are least likely to screen senior leaders during a merger, with 70% of companies admitting to this practice compared to a 49% average. This could potentially lead to a scandal lurking in as many as one third (30%) of organisations who have been through a merger.
The business world is starting to realise the importance of ensuring that everyone in a company has the skills and experience they say they do. Reputational risk is rising up the boardroom agenda in more than half (59%) of IT and technology companies, with damage to the reputation of the business being viewed as the biggest issue of not having the right leaders, followed by leadership that negatively affects business performance.
Interestingly, more than three-quarters (76%) of IT and technology firms rely on personal recommendations to inform recruitment decisions. While personal recommendations can be valuable, they may not always guarantee the accuracy of an applicant's qualifications or experience.
In many IT and technology firms, it is simply presumed that someone applying for a leadership position can be trusted and that their application and interview are entirely accurate. However, more than a third (35%) of HR directors admitted that people have been hired who would not have been if proper background screening had been conducted.
To mitigate these risks, IT and technology companies in Germany are implementing comprehensive cybersecurity and risk management measures driven by the NIS-2 directive. These include strict access controls, multi-factor authentication, Zero-Trust principles, continuous monitoring, regular security audits, and management responsibility for risk oversight. While exact figures on hiring people with false CVs or unchecked backgrounds are not publicly detailed, companies increasingly rely on thorough background checks and structured risk management to minimize such risks as part of compliance with evolving regulations.
In conclusion, the IT and technology sector is recognising the importance of maintaining a robust recruitment process to protect against internal risks like poor leadership or hiring individuals with intent to steal intellectual property. As the sector continues to grow and evolve, it is crucial that companies prioritise due diligence and background checks to ensure they are hiring the right leaders and employees for their organisations.
