I know there are fairly serious legal risks/fears when it comes to checking references and vetting potential hires. I wonder if this had a lot to do with Skype not knowing how unliked this guy was at Yahoo! ...
I wonder how much money it cost them to recruit, hire, and then lose this guy
Most of all, it seems to me like there is a startup opportunity here IF (big if) you can ease people's legal fears. Something like this:
(a) Maintain a largish db of tech workers that includes the dates they worked at various companies (Joe worked at Yahoo! from 2004 to 2007)
(b) Large company wants to hire some manager/exec (Phil). They pay the service $1,000 to evet him.
(c) The service matches Phil's work history against it's database and compiles a list of everyone who also worked at each company during those times. An email goes out asking each to complete a quick recommendation page.
(d) Anyone who knew him can just say "I worked with/under him" and maybe a thumbs up or down. Perhaps incentivise them somehow (unless that would taint the results)
(e) Large company gets a report and never sees names of respondents, only stats like "48 people responded and 75% said Phil is cool" ... maybe some anon. comments.
(f) Profit