Conducting reference checks can be one of the most important steps in the selection process. Since past performance is often the best indicator of future performance, references allow you to talk to past supervisors in order to determine if the applicant being considered is suited for the role.
Reference checking allows you to ensure that you are finding the most qualified person who is also a good match for the position and the business. By conducting reference checks, you can avoid costs associated with failed probation periods, poor performance and culturally unaligned to the business, all of which can impact your guests or clients and damage your image or reputation.

Why perform reference checks?

As part of the recruitment or pre-employment procedure it is recommended that reference checks be conducted from amongst the referees supplied to you during the interview process. This procedure is part of any professional recruitment and employment process. Although a time consuming process, the information you obtain from reference checks is valuable and will complement the information gleaned from the interview, analysis of the resume and past work record.
There are two types of references - Professional and Personal. It is best to speak to at least one person from each category. The professional reference should be one of the prospective employee’s most recent direct supervisor, so that you can gain an insight into how they will perform in the position you are offering.
Reference checks usually occur when you have narrowed your selection to the final few candidates and you have gained their consent to contact their referees. If you are unable to contact a referee leave them a message requesting they get back to you within a certain timeframe otherwise you will assume that they do not wish to provide a reference. This message will ensure they call you back if they feel seriously about the candidate and wish to assist them.
It is important that you gain permission from candidates before contacting any of their referees. If a candidate won’t give permission for you to contact their referees and there is no reason for this then chances are they may not be a suitable candidate for the position.
A common mistake managers often make is asking candidates to choose their references. Instead, you should tell the candidates that you wish to speak to the people who actually supervised them. It is good practice to speak to at least three work-related references. If the candidates’ current employers do not know they are seeking work elsewhere, then go to the previous employers.
Reference checks help you confirm information on the candidate's application form and resumes. You will also gain greater insights into the candidate's skills, knowledge and abilities from someone who has actually observed the candidate’s performance or worked with the candidate.
All information supplied by referees must be treated as confidential material. Once the person is appointed as an employee, the information is separated from other elements of the application and placed in a sealed envelope in the personnel file. As such, it does not form part of the person’s employment record or personal file and remains the property of the business.
Before making the calls, it is good practice to make a list of questions so that you are asking the same set of questions to each referee. Consistency gives you a consistent frame on which to base your decisions. All questions should be job-related and legal. You cannot ask discriminatory questions that are on the grounds of age, sex, sexual orientation, marital or family status, disability, religion, ethnic origin and race etc. Ensure all reference check questions are related to the job and focused on behaviours related to the job and the workplace environment. This can be done by describing to the referee the responsibilities, duties and working environment of the position for which the candidate has applied.

How to conduct reference checks

• Identify yourself, your title, organisation name and tell them you are calling about a reference for a candidate you are considering
• Ask if now is a good time to talk or whether they would rather schedule a call at a later time
• Make sure they understand that you have the consent from the applicant and that all responses will remain confidential
• It is important to give a brief description of the role you are considering the applicant for, so that they can comment in context
• Give them time to answer your questions. Let them respond, and do not cut them off or put words in their mouth

Tips for Conducting an Effective Reference Check

1          Take the reference checking process seriously

It’s frightening to think of the number of people who will actually bring someone into their organisation relying on the feedback gained from a 2-minute phone conversation. Perhaps trusting a 2-line email; or maybe without even carrying out any reference checks at all. They’re usually badly burnt after 3 – 6 months of the new employee being in the job.
This is probably a good time to remind you that the cost of a poor hire (someone who leaves because they feel the job isn’t for them or who you need to let go because they’re just not up to scratch) can be as high as 3 – 4 times their salary.
A very costly exercise indeed.

2          Conduct at least 3 verbal reference checks

There are candidates out there who look great on paper but who perform poorly during interview. But there are also candidates who perform very well during interview but once they are on the job it’s a different story altogether.
CVs can be embellished, and it’s even possible to become a ‘master interviewee’ with a bit of coaching or plenty of practice. The good news is that there is a way for you to ensure that the person you initially discovered on paper and the person you then thought performed strongly at interview is actually who they say they are.
Before you bring anybody new into your team you should carry out three reference checks. These checks are the perfect way for you to understand how the candidate will really perform on the job (the good and maybe even the not so good) before you find out, perhaps the hard way.

3          Plan your questions carefully

A simple list of questions helps narrow down your list of top candidates in order to select the best person for the job.
When you are speaking to a candidate’s former supervisor, don’t just ask them questions like “were they a good staff member?”, “did they have many days off?” or “on a scale of 1-5 how would you describe their integrity?”
You’re really not going to learn that much with closed-ended questions that will give you just a “yes” or “no” answer.
You need to think back to the core skills for your role e.g. the job description, as well as the core competencies and key success measures under the performance profile that you had created for the job and ideal candidate.
If during your interview you asked the candidate questions around communication, decision-making and time management, you should then ask the referee (ideally the candidate’s former boss) exactly the same questions.
“When did Nick ever have to “sell” an idea to a co-worker? How did he do it?”
“Can you give me an example of a time when Ken had to be quick in coming to a decision. What obstacles did he face? What did he do? “
“Please describe a situation that required Narelle to do a number of things at the same time. How did she handle it? What was the result?”
The questions you ask should prompt the candidate’s former supervisor to talk about the candidate’s actual past experiences and behaviour – ideally in more than just a 2-minute quick call.
The responses to these questions will certainly tell you more than whether Liz was nice to work with, was usually punctual, and had good attendance or whether she was proficient in Excel.

4          You’re allowed to ask one hypothetical question

One question you might also want to consider asking at the very end of every conversation with a referee is something along the lines of “So would you ever re-employ [insert name here]?”
This should be the only hypothetical question in the entire discussion. But the answer to this question can speak volumes. After all, there is a huge difference between “Um … yeah … I guess so”, “Yes … yes I would”, and “I’d have her back in a heartbeat”.

5          Take detailed notes

It’s always a relief when you hear positive feedback about the candidate you are so desperate to hire. In fact, you may have even already made them an offer (I’ll leave tips around making an offer subject to references for another time).
But it’s still important to take notes during your calls with past employers. You never know when you might need to refer back to some of the comments further down the track (e.g., during performance reviews).
If one of the two reference checks is glowing and the other is mediocre or even negative, you should try to conduct a third check just to ensure you iron out any disparity.

6          Beware of fake referees

You wouldn’t believe how many so-called professional candidates out there will provide fake referees. When someone is desperate to get a new job, they’ll resort to anything.
Over the years I have personally caught many candidates out who gave me the names of so-called previous ‘managers’ who in fact turned out to be either friends or colleagues.
Make sure you’re really talking to a previous employer. Do your due diligence. If a candidate gives you the details of a past boss, check them out on LinkedIn, and ideally call them on a land line at the organisation. Better still, after you’ve spoken to them, connect with them on LinkedIn and thank them for taking the time to speak to you. You’ll quickly find out if you actually spoke with an ‘imposter’.
“Hi Paul. Thanks for connecting with me on LinkedIn. I think you might have the wrong Mike Walker. We’ve never spoken.”
The name has been changed here. But I remember exactly how I felt when I received this message … when I’d already made the offer to the candidate on behalf of my client 2 days earlier.

7          Don’t put words in their mouth

Once again while you might be keen to make an offer to a rock star candidate, try to avoid manipulating the conversation to go in your favour.
So steer clear of comments like:
“What you’re saying is that Liz interacts well within a team, right?”
“We’re looking for someone with outstanding customer service skills. Liz was part of your customer support team, wasn’t she?”
“You mentioned you’re out of the office a lot. Maybe that’s why you think Liz was difficult to manage. I’m always around so it shouldn’t be a problem …”
I’ve actually heard this last one. It’s not even a question. It’s simply an attempt to ‘justify out loud’!
Oh … and if a referee is gushing with praise and can’t fault your candidate in any way at all that should ring alarm bells too. Even the greatest employees can improve in one or two areas.
How does that saying go? “If something seems too good to be true, it probably is”.

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