A new employee can cost as much as $240,000 to recruit, hire, and onboard. If that employee turns out to be a poor fit for the role, the costs go much higher, given that you may need to find a replacement. Add to the financial costs the toll a bad hire takes on your patience and the morale of your other employees.
It’s this reason you need to go out of your way to ensure that each employee you hire is the ideal one for the role. A sure way to do so is by conducting reference checks. Of course, if you’re using an agency that provides recruitment as a service, they should be able to do this task on your behalf.
You believe you’ve found the ideal candidate for your available position, and it’s now time to verify references. What is the most efficient way to obtain the information you require? Should you ask the same questions to everyone? What do you make of their voice’s tone, if anything? And how can you get around the reality that many organizations only enable you to speak with HR and confirm the bare minimum of information?
What exactly are employment reference checks? More importantly, how can you conduct these checks like a pro?
Read on to learn more.
What Is a Reference Check?
A reference check refers to when an employer contacts a job applicant’s previous employers, supervisors, schools, and personal references to learn more about the applicant.
Using reference checks, recruiters can verify such essential details as the applicant’s employment history, job qualifications, educational background, behavior, strengths, and weaknesses.
Before conducting reference checks, it’s always advisable to obtain the applicant’s consent during the interview process. Inform the candidate that you’d like to talk to ask their references employment-related questions.
Instead of asking the candidate to choose their references, tell them you’d like to speak to their actual supervisors at the time of their employment. If the candidate is currently working somewhere and their employer doesn’t know they’re looking for a job, you can opt to speak to previous employers.
The first step in the process is to get input from everyone who interviewed the candidate at your company. Inquire of them: What are your main concerns? What would you wish to pursue further? “What are some things you wish you knew more about?” Your inquiries for the references should be based on what you’ve learned. After all, the purpose of a reference check is to do more than just verify information on a résumé.
Ensure that all questions are legal and related to the job.
6 Steps When Conducting Reference Checks
Many employers know they need to have ample background information regarding a candidate but aren’t seasoned on how to conduct reference checks. To take the guesswork out of the process, we outline six easy steps you need to follow to get the job done.
Remember, you may need to rephrase some of the questions or ask additional ones, depending on who you’re contacting.
Here are the reference check steps you need to follow.
Set the tone of the conversation
Assume that the call with the reference will take 30 minutes. It won’t take long, but it’s important not to rush things. To double-check that the person you’re chatting with is in a position to evaluate the candidate, you should question how the reference knows him at the outset of the conversation.
1. Verify the Name of the Candidate
The very first thing you need to do when calling a reference is to verify whether the name the candidate provided is correct. This may seem like an obvious step, but it could help you weed out a dishonest candidate.
Be sure to verify whether the title they provided and the dates are correct as well.
2. Ask How the Reference Knows the Candidate
Typically, candidates provide different types of references based on the requirements of the position. You may require that they give two professional references and two personal references.
When calling each of the references provided, be sure to verify how they know the candidate. Doing so helps you determine whether the details the candidate provided regarding the reference are true.
After that, give the candidate a complement. Begin with the assumption that the candidate is an excellent prospect who will make an excellent employee. If you show suspicion or hesitation toward the candidate, the reference will most likely remain silent out of loyalty.
Set the tone for a productive dialogue by emphasizing the importance of having a credible reference. Say that you understand that no candidate is perfect, but that knowing as much as possible about the applicant would help you determine whether she has a good chance of succeeding in the job and ensure effective integration during the onboarding phase.
3. Inquire What About the Candidate Makes Them a Good Fit
As we previously pointed out, hiring a candidate who’s the wrong fit can cost you massively. During your time with their reference, gauge whether the candidate is qualified for the position.
Be sure to explain the scope of the role to the reference clearly. Do they believe the candidate would flourish in the role, and why?
You must be explicit about the function you are attempting to fill and the obstacles it will entail. Begin by expressing something along the lines of, we are actively considering Sarah for the position of IT Project Manager here. They’ll have to work under tight schedules and budget constraints.
Then inquire if the reference has seen Sarah perform in comparable situations. What was her actual role and responsibilities, for example? What exactly did she do? How did she pull it off? What were the ramifications of her actions? Don’t interrupt and don’t give the person the response you’re looking for.
4. Ask specific, open-ended questions.
Asking broad queries like what can you tell me about Sarah is a bad idea. These questions create hazy responses that focus on Sarah’s best qualities rather than the ones that are most relevant to the position. Your goal should be to ask a sequence of open-ended inquiries instead. Say something along the lines of, I understand Sarah assisted with the implementation of a new ERP system. Could you elaborate on Sarah’s role in this?
Alternatively, I believe your department was under significant stress as a result of a recent acquisition. Can you give me an example of how Sarah recruited new employees? You might allude to your concerns as the conversation proceeds. For example, Sarah has little experience leading people; how do you think she’ll fare as a leader?
5. Ask About the Applicant’s Strengths and Weaknesses
Among the primary reasons you’re conducting reference checks is to determine an individual’s strong and weak points.
Asking the reference to mention any strengths and weaknesses they’re aware of regarding the candidate is a good way to find out. You could limit the number to three strengths and three weaknesses.
The answers to this question help you know where the candidate excels and where they could improve. It also helps you know whether they’re a good fit for the role.
6. Inquire About the Behavior of the Candidate
Make sure to inquire about the candidate’s soft skills, social, and EQ-based talents from references. Asking questions such, what can you tell me about Sarah’s self-awareness and self-regulation? What kind of drive does she have? Does she show any signs of empathy? Is she adaptable? There are no correct or incorrect replies. However, what you learn will assist you in determining whether the candidate is a cultural fit for your company.
Consider the type of culture in which this candidate has worked, as well as her aptitude to learn and adapt to new situations. Some businesses work together, while others are more competitive. Some are more long-term focused, while others are more short-term focused.
We suggest concluding the chat with the following question: Is there anything more you’d like us to know about Sarah? There are usually some pleasant surprises.
Look for ways in
Consider alternative ways to get the information you need if speaking with a reference proves difficult—for example, if your company doesn’t allow managers to contact references directly or you’re being stymied by HR on the other end by only getting a basic confirmation of the candidate’s title and dates of employment.
We suggest getting in touch with people in your network who know the candidate for informal, around-the-back-door references. See if there’s any crossover in professional associations, personal networks, prior employees, and LinkedIn. You’re augmenting HR, not bypassing it.
Red flags from a reference check
It’s important to keep an eye out for the following red flags when collecting input from prior employers:
Feedback that is negative
It should go without saying that if a reference doesn’t give a positive impression of a candidate, it’s a big red flag. Don’t stop there, though. To find out why, ask probing inquiries. You might be thinking, for example, why would a candidate give the name of a former colleague or manager that is providing you with a terrible reference. Quite possibly it could be due to a prior personal dispute. Conduct multiple reference checks with other contacts to corroborate or dispute the feedback in this circumstance.
Don’t call this one
It’s a red flag if a candidate offers references and then suggests that you shouldn’t contact particular individuals on the list. Similarly, if you go to verify references and realize you’ve been given the wrong phone number, it’s possible that something is wrong. However, resist the tendency to jump to conclusions. Allow the candidate to provide updated and accurate contact information.
Just-the-facts citations
Some employers may merely provide factual references, such as confirming a person’s identity, job title, and dates of employment. This could signal a less-than-stellar job history, or it could just be that you’re working with a company whose HR policies prevent you from going into detail.
Replace open-ended questions like “In which areas did they thrive on the job?” with simple reference check questions like “Would you rehire them if you had the chance?” A more straightforward question can sometimes persuade hesitant references to open up.
Inconsistencies
If a former employer tells you something during the reference check that contradicts what the candidate stated on their résumé or during the interview, that should raise red flags. To make sure you’re not misinterpreting the response, ask the reference a few more direct questions. You may wish to provide the candidate an opportunity to explain the differences, depending on their severity.
References that only give overly positive feedback
It’s possible that the feedback you receive is too good to be true. If you ask the correct questions, honest references will open up about their former employee or colleague’s qualities and faults. If the reference can’t think of a single thing the applicant could do better, it’s possible they’re not giving you the whole picture.
Reference Checks Can Help Improve Your Recruitment Process
Reference checks are a central part of the hiring process. When done well, these checks can provide essential information about the suitability of a candidate for the role in question. Thus, you get to avoid the astronomical costs associated with bad hires.
Would you like assistance in getting the right talent for your vacancies? Please, contact us today.