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Reference Check – Importance and meaning

Updated on: 18th Apr 2024

5 mins read

 

Reference Check Definition 

Reference checks play a role in the hiring process. They provide insights into a candidate’s qualifications by seeking feedback from their former colleagues. This feedback is typically obtained through phone calls or emails where references are asked questions about the candidate.

Why are reference checks important? 

There are reasons why conducting reference checks is significant: 

Acquiring Information 

References often serve as one of the reliable sources of gathering job-related information about a candidate. In fact, they may be the source aside from the candidate themselves who possess knowledge of their workplace performance and practical skills. 

Determining Job Fit 

As a hiring manager or HR professional you understand that having the right skill set is one aspect to consider when selecting the candidate. Aside from a job fit, you also seek someone who aligns well with both the manager and company culture. 

By conducting reference checks, you can assess whether the candidate will be a match for your organization. After all, who better gauge their suitability than someone who worked with them on a basis? 

Know Your Employee 

One of the benefits of conducting reference checks is that they can help verify the information provided by candidates on their resumes and job applications.  

It is important to reach out to references to validate details such as job title, responsibilities, work environment dynamics, training and skill sets. 

In cases the opinions of previous collaborators can provide valuable insights into an applicant’s abilities and skills. 

Identifying Flags 

One more benefit of conducting reference checks is that they can alert you to any issues with the applicant.  

For example, if the responses from a reference don’t align with the candidate’s resume and job application it could indicate that the candidate may have exaggerated their skills and experiences. 

Reference Check might also unintentionally reveal patterns of behavior in the workplace, such as absences, tardiness or being difficult to work with. 

Advantages of Reference Checking 

In addition to interviews, reference checks are a component in evaluating a candidate’s past and present performance. Reference checks can: 

  • Verify information provided by the candidate. 
  • Provide insights into a candidate’s skills, performance, knowledge and work history from a source, then the candidate themselves. 
  • Help assess whether the candidate is truly capable of succeeding in the position. Past performance is often considered an indicator of success. 

Steps to Conduct a Reference Check 

When conducting reference checks, there are factors you should keep in mind, including: 

1. Allocate an amount of time 

Reference checks hold great importance in the recruitment process, but they can be quite time-consuming. If you are conducting them over the phone, make sure to allocate time to thoroughly carry out the number of reference checks. 

Consider utilizing automated reference checking software to streamline the process and save time. 

2. Avoid the mistake of asking a series of ‘Yes or No’ questions.  

This type of questioning doesn’t add any value and hinders the ability of references to provide insights into the candidate’s true abilities. Instead focus on open ended questions that allow references ample opportunity to share information about the candidates’ skills and capabilities. 

3. Request references from individuals who have a relationship with the candidate.  

It is a known fact that candidates are likely to provide names of references who they believe will give reviews. While this practice cannot be entirely eliminated, you can require candidates to provide names of people they currently work with or have worked with in the past.  

Additionally discourage them from using relatives as references even if they have worked together before. Taking these steps can improve the quality of references by ensuring that they possess knowledge of the candidate’s workplace skills. 

4. Familiarize yourself with your obligations when it comes to reference checking. 

For example, in areas businesses are not allowed to ask for information about applicants, such as whether they are married or have children. These legal restrictions also apply to reference checks. 

It is crucial that you take the time to connect with your data protection team to better understand the limitations within your area. This will help you avoid any issues related to compliance. 

5. Prepare the questions 

It’s also a practice to have a prepared list of questions before initiating a reference check. This step not only helps you stay focused and gather information but also prevents potential compliance problems. 

Frequently Asked Questions  

What do employers look for when they check references?  

 
Answer: When a recruiter contacts a reference, they are not just seeking feedback about you. Instead, they delve deeper into their investigation to determine if your representation of self aligns with your employer’s performance evaluation. 

What happens during the process of checking references?  

 
Answer: Checking references involves contacting employers, supervisors, schools, etc. in order to verify employment and educational information while gaining further insight into a candidate’s experience, accomplishments and skills. 

What risks are associated with reference checks?  

 
Answer: This is referred to as a Threat of Reference Check. It is carried out to eliminate candidates who may lack integrity or motivation. The hiring manager can use these reference checks to validate the truthfulness of any statements made by the candidates. 

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