The value of Reference checks for Employers

Many hiring managers do not realize the importance of reference checking but our experience shows that it is a very useful screening tool during the final stage of the hiring process. The most expensive mistakes you will ever make in hiring could be the result of not properly checking & confirming the truth & validity of the hired person's background. Though there are some obvious weaknesses, and though the feedback received from the reference checks has to be viewed subjectively, if done correctly, reference checking can provide enough value.

It is important to review the weaknesses so that we can handle the process of reference checking in a manner that we derive maximum value from the exercise.

Few of the weaknesses in the reference checking process:
1.References who are positive:
The candidate is definitely going to provide references with which he/she is totally comfortable. No one is going to give names to potential employers of people who will speak negative about them. Hence it is important to ask for 4 references (instead of 2 normally provided) so that the applicant can be pushed into providing names with which he/she is at least one degree less happy. At least we know if 4 people are consistent with feedback on the critical areas we are wanting to check, it can be quite reassuring.

2.References to be related to applicant's performance:
Many a times references are provided which are not directly related to applicant's performance. The person should be able to give feedback on the basis of the knowledge of what the applicant did in his/her previous job.
Though as mentioned earlier, there is subjectivity involved with the feedback you get from the reference checking process, if done correctly, some value can still be derived:

Some suggestions:
•The first thing which is important is to have the hiring manager checking reference "make the telephone call" himself/herself. Letters or emails should not be used to get feedback because valuable information can be got only by speaking to the person.

•When the hiring manager makes the call, it is important to get connected & pay full attention to the tone of voice, content & pauses of the respondent. Things which are not said can be extremely important about which you, as a hiring manager, have to make an intelligent judgment. There was an instance where on probing we found out that a mid-level manager working for a large firm was extraordinarily good as an individual performer but had problems as a team player. The client on behalf of whom we were doing the reference check was a relatively smaller organization wherein in terms of team size the manager would need to handle a smaller number. Also, since we got this feedback, the hiring manager was informed accordingly and was advised to make the candidate aware about this feedback so that both, the hiring manager as well as the applicant, walked into the relationship with their eyes open. Since the hiring manager had this feedback, he gave him charge of a relative smaller team size and also kept counseling him at various stages. It has now been more than one year that the relationship is working out fruitfully.

•A former employer to whom the applicant was directly reporting is ideal as a reference. A customer (in case of jobs where the applicant has interacted professionally with external people on behalf of his/her organization like in functions of sales, client servicing etc.) is also acceptable as a reference. In any event, whenever possible, the reference should be related to a job that the applicant has done. Ways must be found to handle the stimuli given to allow the reference to indicate negatives without feeling that he or she is hurting the applicant. One of the things could be that you preface your questions with a compliment. For example "I found Ms. ABC to be very presentable & she came across as a committed individual but is she somewhat short tempered?" or "we agree with you on her presentation skills, but this job involves a lot of long working hours every day. How do you feel she will react to that?" For e.g. : There was a female candidate who was very good with her presentation skills & selling ability and the organization she was working had reasonable working hours. While doing a reference check we found out that she had commitments at home & had to leave for home by 6:30 p.m. everyday. As far as her work performance was concerned it was above average. We were about to place her with an organization where erratic working hours was part of the work culture. But because of this feedback, the organization she was placed in was matching her requirement of reasonable working hours.
•A good question is to ask the reference in the end "Would you hire this person back again today if he applied for a job with you?" All this requires is a simple yes or no response. If the answer is yes, it is a good sign, one of the best you could get. If the person says no, this should be a danger signal for you. You must try & find out why he would not re-employ the applicant and that should tell you lot and your decision then will be a well informed decision.
Reference checks, when handled well, can be an extremely useful screening tool. Insist & commit to doing them because hiring in a haste can be a very expensive decision if it turns out to be a wrong hire. As William Shakespeare wrote "Make haste slowly"

Sarabjeet Sachar-Founder and CEO-ASPIRATION -
Media n Entertainment Recruitment & Resume Services.