Reference Check

What is a reference check?

A reference check involves performing an objective assessment of a job candidate’s previous performance based on references they provided during the application process. These references may be previous managers, colleagues, or subordinates, and they must have worked with the candidate or otherwise share a professional connection with them to be considered a viable reference. The aim of a reference check is to verify that the candidate has provided accurate information about their employment history and to ensure that they actually possess the hard and soft skills required to flourish in the position they’re seeking.

While companies rely first and foremost on an interview to determine whether the candidate is a good fit, a reference check can nevertheless help to:

• Predict the applicant’s chance of success in the new role by obtaining key insights from reliable sources close to the applicant
  
  
• Provide background information about aspects of the candidate’s history that were only briefly covered in a resumé and/or interview
  
  
• Uncover additional useful background information that the hiring manager either overlooked during the interview or the candidate withheld from their application

Why are reference checks important?

For hiring managers, reference checks offer a glimpse into the future of a candidate’s employment with the company. An objective reference check can serve to:

• Determine whether the candidate is the right fit for the job. This goes beyond matching academic skills and years of experience to the description in the job vacancy, and instead delves deeper into the candidate’s soft skills, temperament, mindset, and motivations.
  
  
• Identify red flags. If a reference check reveals that the candidate was poor at timekeeping in their previous role, this is not necessarily a reason to refrain from offering the candidate the position. Instead, it’s an opportunity to address this topic with the candidate in a subsequent interview or discussion and determine whether the issue can be resolved.
  
  
• Verify whether the candidate matches the corporate culture. Every company is unique and cultivates a specific mindset, which is why it’s important to find out in advance if the candidate’s outlook resonates with the company’s broader identity. Teamwork, presentation-based project work, hybrid working, out-of-office teambuilding: if the company favors specific ways of doing things, the candidate should be comfortable with this setup to thrive in their role.
  
  
• Tailor the onboarding process. If the hiring manager is aware of potential shortcomings within the candidate or areas where they typically struggle, they can tailor the onboarding process accordingly to ensure the new hire is quickly integrated into their team and workplace and feels comfortable.
  
  
• Hire more suitable people. If the above points are properly observed as part of a reference check, it’s much more likely that the right individual will be recruited for the job. They will possess the necessary hard and soft skills, the hiring manager will be aware of any red flags, and the new hire will fit seamlessly into the company culture from the start of their employment.

How to use reference checks

A reference check should be deployed after an interview process but prior to deciding whether to hire a specific individual. If the check is performed after the hiring manager makes their choice or offers the job to the candidate, this greatly diminishes the benefits of finding out more about the individual’s background and soft skills.

Before conducting the reference check, be sure to explain the following to the person listed as a reference:

• Who you are and which company you represent
  
  
• On whose behalf you’re contacting them and for what purpose
  
  
• What you would like to find out during the check

Make sure to mention that you expect the reference to be 100% transparent about the candidate’s previous employment history and that no decision has yet been made about their future with the new company. Always be polite and confirm that it is a good time for the reference to speak to you about the candidate; if not, reschedule for a later date, as it’s important for the reference not to feel rushed or limited by time constraints.

A list of questions that you could ask the individual during the reference check includes:

• What is your connection to the candidate?
  
  
• What types of projects have you worked on with the candidate?
  
  
• How long have you known the candidate?
  
  
• What responsibilities did the candidate have when you worked with them?
  
  
• What are the top three qualities you associate with the candidate?
  
  
• Why did you stop working with the candidate?
  
  
• How did the candidate work under pressure?
  
  
• Is there a specific area you can think of that the candidate struggled with?
  
  
• Would you recommend the candidate to another employer?
  
  
• Do you have any other insights about the candidate that you’d like to share?

You can also consult the LinkedIn reference check guide for more information.

When conducted during the hiring process, a reference check gives the hiring manager an opportunity to glimpse “behind the scenes” of the applicant’s resumé and gain critical perspectives firsthand from people who have worked with them in the past. Asking questions, confirming skills, digging deeper: all are possible with a reference check.

A reference check is a simple way to validate the claims made by the candidate in their application and during the interview. By speaking to reference contacts, the hiring manager can verify project participation, qualifications, responsibilities, and key contributions in former positions. While it’s important to the overall candidate experience to treat them with respect and take the information they provide at face value, a reference check is an added layer of security for the company — ensuring the employee hired is actually the one advertised.

Like behavioral interviewing techniques, a reference check gives the hiring manager the opportunity to assess the candidate’s soft skills, or those qualities that they bring to the role which are not covered by academic qualifications. Examples include timeliness, working in a team, communication skills, approach to work, ability to deliver under pressure and within budget, and so on.

What to avoid

Above all, it’s essential to conduct a reference check before deciding to hire a candidate. Otherwise, the check will likely only serve as a means of confirmation bias, affinity bias, or the halo effect:

• Confirmation bias: the tendency to seek out information that confirms or reinforces already existing beliefs and which is difficult to refute once established.
   
• Affinity bias: the tendency to favor candidates with interests or beliefs that are similar to those of the interviewer.
  
  
• Halo effect: the act of one positive aspect of the candidate’s background influencing the interviewer’s overall impression of the individual.

Within the context of the hiring process, the confirmation/affinity bias and/or halo effect manifest themselves as a focus purely on those details that align with the hiring manager’s impression of the candidate as gained through the application evaluation and interview(s). This can lead the manager to overlook relevant qualifications or, worse, dismiss a lack of relevant experience or skills. It may even prompt them to side with the candidate if the reference indicates poor conduct by the candidate in the past. In the long term, this can lead to a lack of diversity within the company, which can adversely affect employee well-being, creativity, and profitability. It is therefore essential to conduct an objective reference check and avoid bias during the hiring process.

Best practices

When conducting a reference check with the individuals nominated by the candidate, be sure to prepare for the meeting in advance, make notes, and cross-check information from the application and interview in order to investigate comprehensively. Use the checklist below to make sure you cover everything you wish to ask:

• Obtain the consent of the candidate before contacting the reference. For example, while a candidate may have listed a current employer as a reference, the employer may be unaware that the candidate is applying elsewhere. This may compromise the employee’s position in the company.
  
  
• Jot down a list of thoughtful questions prior to the call. This will prevent you from overlooking or forgetting anything important. Use the information offered by the candidate as your starting point.
  
  
• Establish clear evaluation criteria to ensure your questions are aligned with the requirements of the position being sought (if you use job requisitions, these can provide a good basis).
  
  
• Do not delegate the reference check to someone else. It should be performed by the individual who assessed the initial job application and conducted the interview with the candidate.
  
  
• Always cover the same bases for all candidates in order to avoid confirmation or affinity bias. This guarantees consistency and is the key for an objective reference check.
  
  
• Avoid overemphasizing a single reference, as this also runs the risk of confirmation bias. Instead, approach each reference with an open mind and treat all information provided about the candidate as objectively as possible.Seek out multiple perspectives for a more comprehensive overview of the candidate’s abilities.
  
  
• Disregard any references from friends or family, as this is a clear instance of bias in the candidate’s favor.
  
  
• Take detailed notes during the reference check so you can refer to them again later.
  
  
• Maintain confidentiality regarding the candidate at all times.
  
  
• Avoid asking questions that could be considered discriminatory, as this can damage the company’s reputation or bring potential legal repercussions.
  
  
• Focus solely on the facts and avoid speculating on the candidate’s character.
  
  
• For internal candidates, secure a reference from their current manager as well as fellow team members.

Follow these pointers for an objective reference check that delivers the information you need to answer the two big questions that lie at the root of any hiring process: Does the candidate have what it takes for the role and will they fit seamlessly into the company culture?

There are companies that specialize in conducting background checks on behalf of hiring managers. This can be a good option for large organizations that have multiple candidates to process simultaneously, as a reference check can be somewhat time-consuming. For instance, imagine that each candidate provides three references and the hiring manager has ten candidates who are eligible for the position. Given that the manager first has to arrange a time to speak with the references before conducting the check, and assuming that each check takes half an hour, this could require as much as fifteen to twenty hours of the manager’s time — which could potentially be better spent elsewhere.

Companies specializing in performing reference checks can also furnish you with information pertaining to the candidate’s educational history, employment history, criminal record, and more. They have different pricing structures depending on the services provided, so be sure to clarify this in advance in order to remain within budget for your recruitment cycle.