ResultQuest investigators have regularly uncovered unsettling information about employees of client companies that developed well into their employment, often years - or even decades - after they were hired. Many had cleared initial background screenings.

 

Some of the cases we examined involved: a forklift operator who was convicted multiple times for public intoxication and driving while intoxicated, a controller who pleaded guilty to charges of shoplifting, and a director of a publicly traded corporation who had been saddled with numerous sizable IRS tax liens and several civil judgments for bad debts. These were all shocking revelations that came to light as the result of simple checks of applicable public records.

 

However, these problems were not discovered as the result of regular, periodic background checks. Instead, they were revealed only after an unfortunate act or occurrence triggered a probe. Such discoveries underscore the potential benefit of ongoing inquiries, especially in regard to personnel in positions of trust or authority, or where workplace safety is at stake.

 

It is understandable to develop trust in tenured employees who are performing at or above expectations. As a result, companies often limit scrutiny of the workforce to new hires. Nevertheless, character and behavioral problems can develop over the course of years, and are often hidden from co-workers. Telltale signs may come to light through a routine investigation.

 

Investing now in a comprehensive personnel background program can help detect warning indicators before they negatively impact your business.                   

 

On the other hand, greed can also be a motivator for moonlighting. And when greed overcomes morality, it might be tempting for an aspiring entrepreneur to misuse the physical or intellectual assets of the primary employer, especially if the person is able to guide the award of contracts within the primary place of employment. Insufficient control and oversight in the awarding of contracts can be an invitation for fraud.

 

In one case investigated by ResultQuest, an executive of an oilfield services corporation steered a contract to a single-jet aviation charter operation he owned, to ferry top engineers to overseas work sites. Doing so would supposedly save the company valuable time and money. This might have been the case in the beginning; however, within a couple of years the charter service had grown to three aircraft by flying entire crews to distant work locations, most of which were served by commercial airlines, as well as charging outrageous ancillary fees for such things as flight crew, room and board, aircraft storage, and inflated landing charges. This might have gone on had it not been for a keen auditor who raised questions.

 

When insiders benefit from contracts, whether legitimate or not, it gives the appearance of favoritism and fails to maintain the arms-length relationship that is essential to ensuring that contractors are operating in the company's best interest. Furthermore, it can negatively affect the morale of others in the organization who see it happening.