Why reference checks are important

WHY REFERENCE CHECKS ARE IMPORTANT

If you’ve interviewed a candidate who seems to tick all the right boxes for a role, you might think that conducting a reference check isn’t necessary.

However, reference checks are critical for ensuring a candidate has the experience and qualifications they claim to have. They can also give you an insight into how a person will perform once they leave the interview room, which can help you avoid making a costly hiring error.

With that in mind, diligent reference checks should be a critical part of your recruitment process.

WHAT IS THE PURPOSE OF REFERENCES?

A diligent reference check allows you to do the following:

• Obtain independent information about your candidates’ previous on-the-job performance, directly related to the key selection criteria of the role they’ve applied for.
• Identify ‘grey areas’ from the candidate’s CV or from their interview, such as the reasons they may have left a past position.

NEVER HIRE WITHOUT CHECKING REFERRALS FIRST

When reviewing candidates for a role, never take anything at face value. If a CV seems too good to be true, it probably is. A candidate can tailor or embellish their experience to fit a job description and make their experience look impressive.

No matter how amazing a candidate may be on paper, and regardless of how impressive they may have been when you interviewed them, never let the reference checking process slip through the cracks.

“The cost of a poor hire can be as high as three to four times an employee’s salary.”

Verifying referrals for every candidate is the only way you can avoid employing potential employees with a history of fraudulent or undesirable behaviour, or who have presented a falsified or embellished employment application.

Reference checks can uncover anything in a candidate’s past, from criminal convictions and bankruptcies to stealing company funds and being terminated from employment. That’s why the importance of reference checks can’t be understated.

WHAT INFORMATION DO YOU NEED FROM A REFERENCE CHECK?

When conducting a reference check, it’s critical to verify:

• a candidate’s previous employment history
• education
• past positions
• listed names and mobile numbers are those of legitimate referees.

Asking questions like “Would you hire this person again given an opportunity in the future?” or “How would you describe this person’s working style?” can help clue you in as to whether a candidate’s reputation matches the claims on their resume.

Reference publication: Business Australia 29/3/2022