Why References Can Make a Difference

You are ready to make an employment offer to the candidate you believe is perfect for the marketing position you have been struggling to fill. Before you make an offer of employment someone says, shouldn’t we check his references? How would you answer this question?

When I work with clients I inquire whether they conduct reference checks when hiring new employees. I typically get one of three answers:

1. Yes, but not consistently.
2. No. I go with my gut instincts.
3. No. Employers refuse to provide more than dates of employment, salary history and job title so why bother?

While there is no legal requirement that an employer check a candidate’s employment references it is a considered a best practice and I strongly encourage employers to perform a reference check for each new hire. These are the primary reasons:

* Having more information about the candidate will allow you to make a better informed hiring decision. You may obtain information about the candidate that could change your mind about extending an offer. If this is the case, consider the time and expense you saved by not making an employment offer to that candidate.

* Reduced liability exposure. In employment attorney, Barry Kellman’s article entitled “What You Don’t Know Can Hurt You,” he cites the following example. “Consider a situation where an employee engages in violent conduct at your workplace and is later found to have engaged in similar conduct at a previous job. You will be in a far better position to defend against claims of "negligent hiring" if you at least attempted to obtain background information from the prior employer, even if your attempt failed.”

Now that you understand the primary reasons why you need to conduct reference checks when hiring new employees, here are some additional tips.

* Obtain a release from the candidate authorizing you to conduct the reference check free from liability

* Obtain approval from the candidate before contacting references

* Avoid talking with the human resources department. We HR-types will only give an employment verification (i.e., dates of employment, title, etc.) rather than comment about employee work performance

* Talk with the employee’s direct supervisor

* Talk with coworkers and/or direct supervisors who no longer work for the company

* Develop a reference check format that includes standard questions and include some questions tailored to the job

* Keep reference check questions relevant to the job

* In order to save time, don’t check references until you are ready to make an offer

* Retain a copy of the reference check once complete