Why Reference Checks Are Important
The hiring process can be stressful. It’s like that with any high-stakes gamble, and it doesn’t get much more high-stakes than bringing a new candidate, because there’s more than money on the line – there are your other employees, your clients, your providers, even your reputation in the business community, all of which can be affected by a bad hire. It’s enough to drive anyone a little crazy.
There’s simply no easy way to take the uncertainty out of the hiring process. You can interview a candidate, validate their skills with testing, confirm their employment and education history, and you still won’t know what will happen when they actually get to work. So how do you figure out if a candidate is going to be a good fit for your business?
One of the most effective ways to make that determination is also one of the oldest – talk to their references. A simple phone call can go a long way to preventing your company from making a bad hire.
Why Check References?
It’s no secret that more and more companies are unwilling to give detailed employment references. Companies are worried about the potential for legal liability that can result from commenting on a former employee’s work. Because of this, most companies only confirm dates of employment, job title, and rate of pay, assuming they give any information at all. This lack of detailed information can be discouraging and often leaves people with the feeling that checking references isn’t worth the effort.
But it is.
Checking candidate references is still the best way, and often the only way, to gain valuable insight into how an employee might fit into your company. There are other benefits to checking references as well. Here are a few reasons why checking references is worth the effort.
Managers and co-workers still talk to you
Much to the annoyance of HR professionals everywhere, managers and co-workers will still give references, especially when it’s about someone they’ve worked closely with. If the reference indicates that giving detailed information is a concern for their company, ask to speak with them after hours or away from the office. You’ll get the best references from someone who feels they can speak freely. Be prepared to call from your cell phone and to use your own free time. It’s an investment on your part, but you’ll be talking to the people who are in the best position to know about a candidate’s abilities, work habits, and professionalism.
Confirmation of a candidate’s experience
Unfortunately, exaggerations and out-right misinformation are common on resumes. The best way to find out what’s true and what’s not is to call a candidate’s past employers for a reference. Even in the case of employers who will only confirm basic details of a candidate’s history (dates of employment, title, earnings), you can still gain valuable knowledge – such as whether or not a candidate has overstated their job title or duties or misrepresented the dates of their employment. The scant information you’re likely to get from a company’s HR department can stop your company from making a hiring mistake.
Checking references can build your network
The key to talent acquisition is to have a strong network. When you talk to a reference, you should focus on the candidate you’re calling about. But you can, and should, be prepared to tell the reference about any upcoming opportunities your company has that they might be interested in. The reference might not be interested in changing jobs when you call, but they might be able to refer someone from their own network. At a minimum, you can let the reference know where they can find more information about your company.
The goal of your call is to check references. But you still have the opportunity to build your own network and maybe even add to your candidate pipeline. So be sure to put your best foot forward when talking to a reference!
Checking references protects your company
When you hire someone for a position without doing a reference check, you are opening your company up to the possibility of making a negligent hire. Negligent hiring happens when someone is hired for a position they aren’t qualified for, especially when a simple reference check would have revealed that information and prevented the hire. There have been instances of companies being held liable for damages caused by negligent hiring. It’s all too easy to imagine the nightmares that can come from, for instance, a bad hire in your IT security department.
Employers can’t be held responsible when they are given inaccurate, misleading, or outright false information. However, the damage done by a negligent hire can and will be held against a company that didn’t make an effort to get background information on a candidate. The bottom line is, making the effort to check references is in your company’s best interest.
How to Check References
Checking a candidate’s references can be kind of a pain, but it’s worth the effort. Checking references helps to alleviate some of the stress in wondering if you’re making the right hiring decision, but it also helps protect your company from possible liability and it can even increase your network and add to your candidate pipeline. Now that we know why you should check references, how do you do it?
Get a signed release form
Most states don’t require a signed release to call references on a candidate. However, it’s always a good idea to get signed authorization to check references, and it is required if you’re going to do a background check on your candidate. Some companies may want to see a release before they give you any information at all, to make sure that they’re not opening themselves up to potential legal liability. So be sure to get permission in writing before you start calling references.
Specify which references you want
When you ask for references, be sure to specify what kind of references you want. A good candidate should be able to provide you with at least one direct manager – two (or more) are better. You should ask for references that are as current as possible, ideally from their current position.
Make sure you hold all candidates to the same standard. If you’re going to request that a candidate offer two manager references, insist that all candidates offer at least two manager references. When you make exceptions in any aspect of hiring, you open yourself up to accusations of bias. So, make sure that all candidates have the same requirements.
Speak to the references personally
You can’t hear sarcasm in an email or a letter. You can’t tell if someone is enthusiastic, either. Make sure to speak with the reference and listen carefully. The tone of voice can convey a lot of information, maybe more than the reference intends.
Ask open-ended questions
When you talk to a candidate’s reference, you’re asking for their opinion on the professional performance of a current or former employee or co-worker. Try to approach this interaction like a conversation rather than a survey or quiz. You’ll get more information on a candidate by asking open-ended questions, such as “What was the candidate’s last position in your company?” rather than “The candidate said their last job title was X. Is that correct?”.
When you take a conversational tone with reference checking, you’re more likely to put the reference at ease and you’ll get more information than just going over a set of “Yes/No” questions. Be prepared to follow up on any statements the reference makes – those can provide valuable insight as well. And just as in any conversation, remember your manners and don’t interrupt the person who is talking.
Be prepared to discuss the job
The whole point of checking references is to better determine if the candidate will be a good fit for the job they’re being considered for. One of the best ways to do that is to discuss the job the candidate is being considered for. Tell the reference about the position and ask if they think the candidate might be a good fit.
Watch out for red flags
When you call a reference, you should watch out for any red flags. For example:
References that are too good to be true – no one is 100% perfect
Inconsistencies with the resume – Information provided by the candidate should be very similar to the resume
Refusing to provide specifics – The reference may think the candidate was great, but they should be able to tell you why and how they’re great
Negative information – Does the reference mention anything like the candidate having been disciplined or fired?
Checking references and the advantage of a strong talent acquisition partner
A thorough reference check takes time – sometimes, a lot of time. More than that, it requires skill, experience, and objectivity. When you’re at the point of checking references, you’re serious about considering giving an offer of employment, so it can be easy to overlook subtle red flags. Your talent acquisition partner, on the other hand, is going to be objective. Their goal is to not only make a placement but to also to make the RIGHT placement, and to help you hire the best candidate. Let them help you.
