The Importance of Employment Reference Checks in Recruitment

As with any significant decision, employment reference checks help in recruitment to make sure you’ve made the right choice. References go beyond resumes and interviews and give you a candid look at a candidate’s previous work performance, interpersonal skills, and professional conduct. Reference checks are a crucial aspect of recruitment and hiring, as they give recruiting managers and recruiters one more layer of insight into the skills a candidate may have, their reliability, and how they might fit into a company’s culture. This is an article about what employment reference checks are, why referees matter, and the ethical considerations of getting employment reference checks right.

1. Why Employment Reference Checks Matter

In recruitment, employment reference checks remain one of the most important tools for making informed hiring decisions.

Resumes and interviews show what a candidate has done and who that candidate is, but they do not show how a person behaves under actual working conditions. While employment reference checks can validate basic information given by the candidate and uncover any additional information that might be obscured from other stages of the hiring process, they are the least useful of the tools mentioned.

Reference checks are essential for several reasons:

  • Verification of Job Performance: One of the best predictors of future job performance is a candidate’s previous job performance. Reference checks help hiring managers validate that the candidate performed her duties well — met job expectations consistently, completed duties on time, and worked with her team well.
  • Insight into Work Ethic and Behavior: References are a window into a candidate’s work ethic, punctuality, dependability, your candidate’s soft skills that are hard to determine in an interview. It helps employers make better-informed decisions around cultural fit and long-term potential.
  • Risk Mitigation: Reference checks are undertaken by the hiring company as a protective measure. Being fired once can make it a red flag but if a candidate has a history of unprofessional behavior or poor performance and conflict with previous employers it can be a big red flag. Early identification of these risks will save the company time, money, and potential disruption later on.

2. The Role of the Referee: A Vital Component in the Hiring Process

Usually, managers, previous leaders, mates, or superiors, are referees who tend to play a fundamental role in the provision of a true account of a candidate’s professional capabilities. Referees also have the power to influence the hiring decision they make and having that much of an impact necessarily comes with a lot of responsibility, and that is to remain truthful about the candidate, highlighting their strengths and areas of improvement.

Responsibilities of a Referee

  • Providing Detailed Feedback: Referees need to provide deeper rather than surface answers on the candidate’s job performance, accomplishments, and professional demeanor. This depth of information helps the hiring company get a better grip on the candidate’s skills.
  • Addressing Skills and Areas for Improvement: The candidate’s strengths should be highlighted by a referee and at the same time he should be told about the areas where improvement can be made. It’s honest. Hiring managers can tell whether the candidate’s strengths match the job requirements and whether there are any developmental gaps that training or mentoring can fix.
  • Offering Relevant Examples: Examples of the candidate’s performance can be an added source of credibility and action ability of the feedback to match it with the other feedback. Concrete proof of the candidate’s skills — teamwork, problem solving, or leadership — in an instance makes for a more valuable reference.

Ethics in Reference-Checking

So, a referee is objective if he is to deliver a fair and exact view of the candidate. Exaggerating a candidate’s abilities as well as their understatements of the same is equally unethical. As far as referees are concerned, they should neither flutter the compliment nor undermine a candidate’s merit or demerits.

3. The Impact of Bias in Employment References

Referees try to be fair, but they can easily end up being biased in their feedback. It’s important that hiring managers understand the types of bias that could influence a reference check so they can read the feedback more credibly.

Positive Bias

Sometimes, a referee may unconsciously lean to portray the candidate in a way that may be overly favorable, in particular, if there was a personal professional connection between the referee and the candidate. There are two kinds of this type of bias that can be problematic in that the balance between the candidate’s real abilities and the company’s expectations may be negatively skewed. If you provided overly enthusiastic references, hiring managers should be aware that piles of praise might begin to sound phony.

Negative Bias

Negative bias can come in on the flip side if there was interpersonal conflict or the candidate actually left the previous role under a stressful environmental condition. Unintentionally, a referee may be subtly biased, perhaps with a personal grievance, and give feedback that’s less about what the candidate is capable of. Hiring managers can try to mitigate this by calling multiple references, or asking clarifying questions so that the feedback check will have a separate source.

How to Detect Bias in References

By comparing multiple references recruiters can identify a pattern that may be a potential bias. The settlement of inconsistent feedback from different referees is probably more accurate than isolated positive or negative comments. Recruiters should also ask for specific examples to back up which doesn’t sound so bad at first but will be an indication either that the feedback is personal or based on real experiences.

4. Ensuring Employment Reference Checks Reflect the Candidate’s Full Capabilities.

The basis behind running a reference check is to give a somewhat balanced picture of the candidate, including his or her strengths as well as areas of improvement. A fully reflective reference should include the followings:

  • Core Skills:  How do the candidate’s primary competencies meet the job requirements and the candidate is the best fit for the role? Hiring managers have to understand a candidate’s core skills so they know if the candidate is capable of fulfilling the required demands of the position.
  • Work Style and Adaptability: The candidate’s work style and adaptability should come out in references. For example were they proactive, reactive, detail oriented, or bigger picture oriented? It’s this insight that can help you decide if they would do well in the work culture of the company.
  • Accomplishments and Contributions: Information about who the candidate contributed to their previous roles gives a clearer idea of what that potential new candidate would potentially bring to the new company. They should give examples of projects or achievements to draw from that show that the person can actually deliver value.
  • Teamwork and Collaboration: Many roles require a candidate to work with others. The candidate must interact well with the colleagues, manager, and clients, which will make him contribute well to the new team, so referees should state how it is.

5. The Critical Role of Reference Information in the Hiring Decision

Referees may have an ample amount of information that effects the hiring decision, and how the candidate fits in the organization, which can have a great influence on whether or not it will be hired.

Validation of Cultural Fit

Reference checks also allow one to see if a candidate is a good fit with your company’s culture and work environment, beyond the skills and experience you already know. However, that’s especially true when teamwork, cultural alignment, and shared values are all important in organizations.

Predicting Long-Term Success

The reference check helps you estimate the probability that the candidate would be a successful performer in a new role. Predicting how they will perform in the long-term involves insight into how did they respond to challenges, what was their growth trajectory and how committed they are to their work.

Building a High-Quality Workforce

The broader goal of having a high-quality workforce is also supported by reference checks. Companies can cut employee turnover, and create a stronger and more cohesive team, by finding candidates that are reliable, dependable, and capable. This in turn positively affects productivity, employee morale, and the organization’s successful outcome.

Conclusion

Employment reference checks are an essential part of the recruitment process, and although they can’t be performed through resumes or even interviews themselves add an additional level of validation. Referees take a very important role in providing information about a candidate’s past performance, work ethic, and professional attitude. The ethical duty of the referee is to be fair, honest, and balanced; so that the reference reflects the candidate truly for his strengths and weaknesses.

Especially when you’re looking for not just the skills, but the cultural fit and the potential long term, reference checks are important. Referee feedback allows hiring managers to make informed decisions when choosing whose resumes to put on the ‘Yes’ side while also ensuring the people we choose are appropriate qualified and will be successful in our organization.

For the most effective use of reference checks in your hiring process, hiring managers must be aware of possible biases, be good at asking probing questions, and ideally get checks from multiple sources. By doing that, companies can make sure they hire the right candidates who will help benefit the organization’s goals and work culture.

Reference Check Online