Reference Checks

When it comes to reference checks, there are substantial legal restrictions on the use and communication of employment-related information. In my experience it is becoming more challenging to complete references. Some organizations have policies that prohibit providing references or refer the inquirer to human resources or a third-party service like The Work Number. A positive reference is reassuring. It reinforces the experience we’ve had with the candidate during the interview process and sometimes validates our decision to extend an offer. However, let’s pause a moment and reflect on what we are getting by having completed references versus what are we risking.

Take a moment and consider what are we really getting from a reference. How many times have you completed a reference that was negative that made you second guessed the candidate? I’ve done 100’s of references and I can count on one hand how many times I’ve experienced negative feedback. So, does that mean all the candidates I’ve ever worked with are the best? Of course not. It likely means that the candidate is picking people that will give them a good reference. So, to state the obvious, it’s subjective. Not to mention, when a less than excellent reference is provided do we know with certainty the person providing the insight was being objective? Could the person providing the reference dislike the candidate or is possibly interviewing for the same job?

The risk of doing reference checks is each person you contact to conduct a reference could become your competition. In essence, you are alerting someone that your candidate is interviewing and/or reviewing offers. What if the person giving the reference needs to hire someone with the same skill set? What if they have a business partner in a different division or at another company that is hiring? If you had already presumed this reference was credible and you were intending on taking their input seriously, then why wouldn’t they too want to hire the candidate they are vouching for?

“If” your company is firm on completing references then I recommend the following tactic. Make the offer with the contingency of completing references and any other onboarding requirements you have (background, drug testing, credit check, etc.). Once they sign the offer, complete the references ASAP because the longer they take to complete, the more you are at risk of the candidate becoming an interest of another company. Instruct the candidate to inform the references to expect your call on the same day of your offer. Engage the candidate to help expedite the process. Whenever possible, do not begin reference checks before the offer letter has been signed. I was recently on the wrong side of this. My client insisted on conducting references which lead to one of those references swooping in and offering the candidate more money.

One last thought to leave you with. Are references a scapegoat to ineffective interviewing?