How to Conduct Due Diligence on a Future Employer
Taking the time to conduct due diligence on a future employer can mean the difference between a fulfilling career move and one you regret. It’s just as important for candidates to vet employers as it is for employers to vet candidates. Here’s how you can dig deeper and make an informed decision about your next career move.
1. Research the Company's Background
Start with the basics. Visit the company’s website and social media platforms to learn about their mission, values, and culture. This provides a first impression of how they present themselves publicly. If they aren’t presenting themselves well publicly, then it’s unlikely things will be different when you join.
Next, expand your search to external sources. Check news outlets for stories about the company, whether they’ve received accolades, or if they’ve faced any controversies, by clicking on the ‘news’ button on a Google search of the business. If the company is public, review financial statements to assess their stability. For private companies, look for any market analysis or industry reports mentioning them.
Also make sure to conduct research into any parent, sister, or affiliated business, as they can have a direct impact on the culture and performance of the company you join.
2. Evaluate Leadership and Team Dynamics
An organization is often a reflection of its leadership - culture comes from the top. Research the executives and key decision-makers on platforms like LinkedIn to understand their professional history and leadership style, and see what their recommendations are like. Reach out to any mutual connections that worked for them and ask their opinion.
Take the time to explore the profiles of potential colleagues to assess the diversity, experience, and skillsets of the team you’ll be working with. A strong, well-rounded team can make a big difference in your day-to-day experience. Check out profiles of your team on LinkedIn, and see the turnover as well as progression they’ve experienced.
3. Look at Employee Reviews—Critically
Websites like Glassdoor, Indeed, and Comparably can provide a glimpse into employee satisfaction and workplace culture. Pay attention to recurring themes in reviews, but take extremes—both positive and negative—with a pinch of salt. Just like going to a restaurant, people are usually more critical online than is often the reality.
Consider what matters most to you: Is it career growth, work-life balance, or management style? Filter reviews through the lens of your own priorities.
4. Understand the Industry Reputation
How is the company viewed in the broader industry? Look for testimonials from clients or mentions in industry publications. Companies with a strong reputation are often respected not only by employees but also by their competitors and partners.
Awards, certifications, and recognitions can also indicate a well-regarded organization. For instance, accolades for innovation, diversity, or employee satisfaction can speak volumes.
5. Analyze the Role and Career Prospects
A great company can still fall short if the role isn’t a good fit. Read the job description carefully to ensure it aligns with your skills and aspirations.
Ask questions during the interview about growth opportunities, professional development, and mentorship programs. A forward-thinking employer will have a clear path for employees to evolve and succeed.
6. Perform Legal and Compliance Checks
No one wants to join a company mired in legal trouble (unless you’re a disputes lawyer - then it could be good!). Research whether the organization has faced lawsuits, regulatory penalties, or compliance issues.
Ask questions about workplace policies, particularly regarding diversity, equity, and inclusion. A transparent and ethical company will have clear policies in place to support these values.
7. Network with Current and Former Employees
Sometimes, the best insights come from people who’ve worked at the company. Use LinkedIn to connect with current or former employees. Politely inquire about their experiences, focusing on culture, management, and day-to-day operations.
Approach these conversations with respect and discretion—you’re seeking genuine insights, not gossip.
8. Assess Workplace Culture
Culture is often a deciding factor in job satisfaction. Look for clues about the company’s values in their social media presence, participation in events, or community initiatives.
Pay attention during interviews, too. Are interviewers enthusiastic about the company? Do they seem engaged and aligned with the organization's values?
9. Review Compensation and Benefits
While salary is important, the overall package often carries more weight. Compare the compensation to industry benchmarks, but also consider perks like insurance, retirement plans, wellness programs, and flexible working policies.
Ask about performance bonuses, stock options, or professional development reimbursements—these extras can add significant value. Speak to a recruitment consultant about whether this is all in-line with the market.
10. Trust Your Instincts
At the end of the day, how you feel matters. Trust your instincts when something seems off, whether it’s vague responses during interviews or a high employee turnover rate. Conversely, a company that values transparency and is eager to answer your questions is likely one worth considering.
Remember, job interviews are a two-way street. Asking thoughtful questions and doing your homework demonstrates that you’re serious about finding the right fit—not just any job. It’s your career; make sure it’s one you’ll look back on with pride.