Recently, a client asked me to provide a list of reference check questions as a component of a sales recruiting project. My knee-jerk reaction was, “Reference checks? Why bother? The only thing most companies will provide is confirmation of very basic information, like dates of employment.”
I was surprised that my impression was based on very old information. After all, I hadn’t done any reference checks or researched related best practices for many years. I decided it was time to take a look at the current state of reference checking and summarize my findings in this article.
What is a reference check?
Let’s start by clarifying what a reference check is not:
It is not a background check, which may include a drug test, a criminal background check, and another fact check.
It is not the Employment Verification, which confirms dates of employment, salary, title, and eligibility to rehire (although a comprehensive reference check may include employment verification).
The best definition I found to explain the purpose of a benchmark check is as follows: A benchmark check focuses on checking the opinions of previous colleagues about an individual’s performance.
Why do benchmark checks?
The main reason is that past performance is one of the strongest predictors of future performance. If you can gather accurate and balanced information (that addresses both the positives and negatives) from a candidate’s previous employers, you can dramatically increase your chances of avoiding hiring mistakes and hiring people who perform well.
What are the challenges of performing baseline checks?
Here are some of the key challenges:
- There are not enough quality references.
- It can be difficult to reach them
- Valid data can be difficult to obtain
- Time and cost
- Most people don’t find doing this type of work very fun.
What are the key characteristics of a good referral source?
When conducting reference checks, you want to speak to people who have been in a position to observe your job candidate’s performance. This includes people who have worked with or for the candidate or supervised him. It does NOT include family or friends.
Other important parameters to consider are:
- Duration of relationship
- Freshness of relationship
- Nature of the relationship
- Closeness of relationship
Is providing reference verification information legally risky?
Although legal challenges can arise from the reference checking process, they are generally the result of poor practices, such as discussing prohibited topics.
According to the 2004 Reference and Background Check Survey Report compiled by the HR Management Society, only 2% of businesses are sued for reference-based defamation. It is important to note that the standards that apply to reference-based defamation lawsuits are the same as those that apply to defamation lawsuits: the plaintiff must prove not only harm, but malicious and dishonest intent as well. This is a very high bar.
When you think about it, there can also be a risk in providing positive information. If you make positive comments about a candidate and the prospective employer hires the candidate, and the candidate performs poorly, that employer could sue you for not disclosing complete information.
Lately, many states have enacted what are known as “truth in reference” laws. These laws protect referral companies as long as the employer providing the referral only provides factual and documented information. (An employer should NOT provide any information about charges of discrimination that an employee may have filed against that employer.)
How to improve legal defense and obtain better information
Here are some of the best practices that can help you reduce legal risk and gather better quality information:
- Have each candidate sign a written consent form and a disclaimer form.
- Ask all referral sources the same questions
- Make sure all questions relate to job requirements and the employee’s performance or conduct during his or her previous job (s)
- Include open-ended questions about the candidate’s strengths, accomplishments, and areas for improvement.
- Also ask: “If you had the opportunity, would you rehire the candidate? If not, why not?”
- Encourage the referral source to provide evidence of job performance based on observable job behavior
- age
- Disabilities or health problems.
- Marital status
- Sexual orientation
- Stable home life
- Child care arrangements
- Caring for elderly parents
- Require time off from work to practice religion.
What else can I do to make the Reference Checking process as easy and productive as possible?
There are online services that can help you manage the reference checking process quickly and efficiently and improve the quality of the information you receive. The reasons these services work so well include:
- The candidate for the position invites their referents to participate
- References are anonymous, increasing the availability of referral sources to provide more detailed information on the candidate’s strengths, weaknesses, and observed performance.
- The job candidate must sign an online consent form and a liability release form.
- Using an automated process ensures consistency in the questions asked
¿Where can i get more information?
An online service called Checkster offers a series of short videos that explain how their service works. They’ll also send you a great list of reference check questions if you email [email protected].
Summary Tips
In conclusion, here are some summary tips to help you conduct productive and effective reference checks:
- Create and follow a structured process
- Ask candidates to sign a written consent form and a disclaimer form.
- Focus discussions on performance and work-related behaviors.
- Ask probing questions about the candidate’s strengths, accomplishments, and areas for improvement.
- Take detailed notes
- Consider using a tool like Checkster to automate your reference checking process and provide anonymous referral sources that will increase your willingness to provide useful information.
© 2010 Alan Rigg
