Checking References: Best Practices

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The best practices for checking references is often unknown or confusing to most people involved with human resources studies or manager development training. One commonly asked question is why you should check a person’s references before hiring them. The main reason to check a possible candidate’s references is to ensure that he or she has provided accurate written or verbal information during the recruitment and interviewing process. Checking references can also help you obtain valuable information regarding an employee’s job-related skills and training. This is another method of gathering as much information as possible to help us make an informed decision about a candidate.

The kind of information you should seek in a reference check should attempt to go beyond just factual data. Many organizations only provide limited information, such as the last dates of employment and the titles of positions the person held. Since this has become a practice to avoid certain legal concerns, most employers are aware that the reference check may only provide verification of factual information. If you are planning to ask probing questions that will provide information about the candidate's job skill, make sure the questions are balanced so you can weigh the information. For example, if you are going to ask about weaknesses, also ask about strengths. Learning how to obtain certain information and ask the right questions is covered in many human resources studies programs and manager development training.

If a reference check provides more information than facts, it is important to avoid making assumptions about an individual based on factors that are not always measured the same way. Many people ask questions about performance or personality, work ethic or style of the person. This can be very misleading, since you don't know the performance criteria or the standards of the person you're speaking with or of their organization. It can be confusing even when speaking with someone in your own organization, if you don't know how that individual judges performance. Manager development training, human resources studies and other training can prepare you with a solid background to help you understand the information and eventually hire the right candidates.

There's also a risk of making incorrect assumptions by verifying a candidate's salary. It is important to be familiar with their previous employer's overall compensation structure, because without that information, you simply can't tell how that salary compares to salaries in your organization, or what it means about the person's performance. One fact you may be able to verify about salary is whether the person represented their salary accurately to you. It is important to keep perspective that a reference is only one part of the information gathering and you must balance it with all of the other input received. There are many legal concerns around both checking references and giving references. A common one is the possibility that an employee who does not get a job will sue the organization that provided a reference because they believe the reference is the reason. The claim could be slander, discrimination, retaliation, or even that the reference violated the right to privacy. However, companies that do not check references may also leave themselves open to claims. Employers have a duty to conduct a reference check to determine if an applicant was dangerous to employees, vendors, or clients. The duty is to make a good-faith effort to seek the information.

Lately, many states have been enacting what are referred to as "truth in reference" laws. These protect companies who give references, so long as the employer providing the reference only gives factual, documented information. An employer should not provide any information about discrimination charges an employee may have raised against that employer. It is important to try to obtain a waiver signed by the candidate releasing the providing organization from any liability. Prepare all of the questions in advance so you can move quickly through them. Be professional in your manner and try to verify the most critical information up front. Start by verifying that the person has given you accurate information. Repeat the information you are writing down to be sure you have heard it accurately. At the end thank the person for taking the time and leave your name and phone number for the person to contact you for any reason. Your organization may want to consider seeking a written reference by sending a form that asks the reference-check questions via email or regular mail with a self-addressed envelope or a fax number. The advantage of written references is that there can be no misunderstandings about the information provided. If your organization seeks written references for every reference check, these can be used as proof of a good-faith attempt to look into a candidate's background in case of a legal claim.

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