In the aftermath of a corporate crisis, one of the first important questions a company must answer is whether an investigation is warranted. If it is, a corporation must also decide whether that investigation should be internally conducted or if they should hire private investigation services. When the law or corporate policy isn’t straightforward, here are some tips to help determine why one may be better than the other.
Company size: The size of a company can be a key decision point in choosing to hire a private investigator. Smaller business often do not have the resources or internal talent to conduct an extensive internal investigation. A third party with experience is usually the best option in this case.
Larger companies may have the resources to put together an investigation team, but may not have employees capable of performing the investigation. Hiring an outside private detective is a good choice when a company doesn’t want to add on to existing compliance or legal teams.
Nature of the investigation: A company’s decision will also be informed by what is being investigated. If company leaders, large sections of the company or parts of the company that could affect the company’s future are involved, internal teams will be much less effective. If the problem is limited and discrete, an internal investigation can usually be conducted effectively. But if the issue is significant and widespread or involves senior management, a private investigator is a better choice to avoid any problems.
Data involved: Private investigators are discrete and protect client confidentiality. But a company may prefer an internal investigation if the situation involves sensitive or proprietary information. Companies working with government-related data may also have their own requirements to follow and need to use internal people familiar with the requirements.
Time frame: Oftentimes, an investigation needs to be conducted sooner rather than later. On one hand, hiring a private eye is an effective way to save time. They are experienced in their field and know what to look for and how to get it. On the other hand, in particularly complex companies, third-party investigators may have to take a significant amount of time to learn about and understand the company structure and crisis. If the company is unable to find a private detective that specializes in their particular need, an internal investigation may be a faster option.
Cost-benefit approach: For most companies, the cost of going through a hiring process and adding to a team to conduct an internal investigation will be significantly more expensive than hiring a private detective. However, particularly large corporations may decide to have a permanent investigative team to deal with any ongoing issues. In this case, long-term costs are usually lower with an internal team rather than a third party.
Legal action: If legal action is expected as a result of the company’s crisis, a private investigator has additional benefits in court. A third party investigator is less likely to be accused of bias or having a stake in the outcome of a case. Private detective often have experience in testifying for courts and make reliable witnesses if needed.