Beyond Compliance: Turning Probity Checks into Strategic Business Value

Probity checks are often thought of as a compliance task, carried out because regulations or industry standards say they must be.

In Australia, these checks are now a normal part of recruitment and procurement, especially in recent years as reforms and inquiries have highlighted the risks of weak vetting. Most recently, ASIC and ANZ levied a $240 million penalty against Australia and New Zealand Banking Group Limited (ANZ) for overstating its volumes by tens of billions of dollars and for general widespread misconduct across products and services.

This incident illustrates the importance of stronger quality assurance standards across finance and beyond. A critical part of this process is conducting thorough background checks and reference checks for each incoming employee. 

Meeting compliance obligations is table stakes, but there is another side to probity checks that many businesses overlook.

When used strategically, they can become a powerful way to strengthen reputation, attract investment, and build trust across all stakeholder groups.

This article explores how organisations can shift their thinking about probity checks, moving from seeing them as a tick-box requirement to a long-term business advantage.

There are two ways to approach probity checks. One is to see them as just a requirement — doing the least amount necessary to keep regulators satisfied or to meet legal obligations. The other approach is to treat them as a strategic tool that protects the business and adds value in the long run.

Taking the first approach may keep you compliant. But it does little to uncover risks or prevent costly mistakes. The second approach, however, can prevent financial losses, protect brand reputation, and make the organisation more appealing to investors and customers.

By treating probity checks as an investment, businesses open up opportunities for better hiring decisions, stronger governance, and greater resilience.

Every business has its reputation on the line with every new hire they bring on board. Done well, probity checks act as one safeguard that keeps out individuals who could cause damage through dishonesty or misconduct.

Research shows that around a quarter of job applicants have inaccuracies in their CVs, ranging from small embellishments to serious misrepresentations. Without proper checks, these inaccuracies could slip through and harm the business.

The fallout from a poor hire can be far greater than just the immediate cost of recruitment. In some cases, executives have had to resign after their qualifications were found to be falsified, creating headlines and embarrassment for the organisations involved.

A strong probity program signals that your business takes integrity seriously, which reassures customers, employees, and the wider community. Over time, this builds a brand identity linked to trustworthiness and professionalism, making it harder for competitors to match your credibility.

Investors and partners are paying close attention to how companies manage risk. Financial performance matters, but so do governance, culture, and transparency.

Strong probity processes demonstrate that the business is serious about managing risk and operating ethically. This makes it more appealing to those considering whether to commit funds or enter into long-term contracts.

By being able to show that all key staff have been thoroughly vetted and that internal processes are robust, businesses signal stability. This reduces uncertainty for investors and partners, who want assurance that their association with the organisation will not expose them to reputational or regulatory problems.

 As a result, probity checks can be positioned as part of a company’s governance framework, helping it to meet environmental, social, and governance (ESG) expectations. In this way, probity checks not only protect against risk but also open the door to new growth opportunities.

Trust is not limited to investors. It influences how customers, employees, regulators, and even the community view a business. A strong probity framework gives each of these groups confidence that your organisation is responsible and transparent.

●  Customer trust: In industries where safety, confidentiality, or care are central, such as finance, healthcare, or education, clients want assurance that the people they deal with are qualified and ethical. When customers know a business thoroughly vets its staff, they feel more confident in choosing its services.

●  Employee confidence: A transparent hiring process signals to current staff that everyone is held to the same standard. This reassures them that colleagues are trustworthy and capable. It also strengthens culture, as employees can see the business values fairness and integrity.

Probity checks are not only about risk avoidance. They also improve the quality of hiring outcomes. By confirming qualifications, verifying work history, and checking references, businesses can avoid candidates who present a polished but inaccurate profile.

The cost of a poor hire is often underestimated. Research has shown that a bad hire can cost up to 30% of that employee’s annual salary. In some industries, poor hiring decisions account for most of employee turnover.

This means the hidden expense of inadequate checks can run into hundreds of thousands of dollars when factoring in lost productivity, recruitment costs, and training new staff.

Stronger probity measures help ensure that the right people join the team, which reduces turnover and creates a more productive workplace. Over time, this builds a workforce that is not only skilled but dependable and aligned with the business’s values.

Shifting probity checks from a compliance step to a business advantage requires a clear strategy. That means moving beyond the basics and making checks an embedded part of governance and culture.

One way to frame this is to look at how each type of check can support wider goals:

To apply probity checks effectively:

●  Make them standard for all hires, not just roles where the law requires them.

●  Scale the depth of checks according to risk level.

●  Be transparent with candidates about the process, showing that the organisation values integrity.

●  Use professional screening services that can carry out checks quickly and accurately, minimising hiring delays.

●  Consider periodic re-checks for existing staff, particularly those in sensitive or senior roles.

With this approach, probity checks become a part of the company’s governance framework, rather than being viewed as red tape.

●  Probity checks provide more than legal compliance. They are a tool to reduce risk and add measurable business value.

●  They play a direct role in protecting and improving reputation, preventing damaging incidents before they happen.

●  Investors, customers, and employees place greater trust in organisations that treat probity as a core standard.

●  Better checks lead to better hires, lower turnover, and a more stable, productive workforce.

●  To unlock these benefits, businesses need to integrate probity checks into culture and governance, rather than limiting them to a box-ticking exercise.

We already meet our basic compliance checks. What extra probity measures should we consider to add strategic value?
Meeting the legal minimum is only part of the picture. To unlock strategic value, businesses can add more thorough reference checks, qualification verification, and role-based checks such as financial probity or digital footprint screening. These measures provide deeper insights into candidates, including cultural fit, reliability, and potential risks that standard checks might miss. By tailoring the level of screening to the sensitivity of the role, organisations gain greater confidence in their workforce and show stakeholders they go beyond the basics.

Will more extensive probity checks slow down our hiring process or put candidates off?
Hiring delays are a valid concern, but professional screening providers have streamlined systems that make checks fast and accurate. In many cases, results can be returned within a few days, reducing disruption to recruitment. Being transparent about the process also helps—candidates who value integrity usually welcome the checks. The small amount of extra time is outweighed by the costs avoided: a poor hire can cost as much as 30% of that employee’s annual salary. Communicating that the checks are designed to protect both staff and clients helps maintain a positive candidate experience.

How do probity checks improve stakeholder relationships in practice?
Stakeholder trust grows when businesses can show that they invest in thorough vetting. For customers, this may mean choosing a service provider that guarantees staff have been cleared through police and qualification checks. For investors, it signals that the company has strong governance and minimises reputational risk. For employees, it creates a workplace where they know everyone has been held to the same high standard. Over time, this consistency builds a track record that strengthens relationships with all stakeholder groups.

Should we re-screen existing employees or just new hires?
Probity checks are most often used during recruitment, but ongoing checks can be just as valuable. Circumstances change, qualifications can expire, financial pressures may arise, and regulatory requirements may tighten. Re-screening staff moving into senior or sensitive roles ensures they continue to meet standards. Some businesses adopt rolling checks every few years, while others apply them during promotions. When positioned as part of a wider governance program, this approach reassures stakeholders that integrity is maintained across the workforce, not just at entry point.