Reference checks

By Carolyn Cohen
Illustration: Cathy Pentland

Hiring a new employee is never a sure thing, but there are checks and balances that can ensure a better fit

How lucky can you be? Nancy, your accounts receivable clerk, left Friday for the weekend and failed to show up Monday morning. About noon, you check on her because it is unusual that she not advise you of an absence. When you reach Nancy’s home, you are told she had a job offer she couldn’t refuse and didn’t have the time to let you know. She started the job that day. How do you feel? While you may be angry of course, and understandably so, you may also be panicked because there is no one sufficiently trained to cover until you find someone new. You have two choices: hire a temporary employee and spend lots of time training him or her or do the job yourself (in addition to your own). Needless to say, the pressure is on for you to hire someone quickly.

By sheer luck, a neighbour’s niece is looking for a job as an accounts receivable clerk. She sends a résumé and you like what you see. Yes, there are a number of jobs in a short time period, but she has three years’ experience in a similar industry working on a similar accounts receivable system. You contact her and she comes in for an interview. Kathy is obviously bright and out-going. You want to offer her the job immediately but think about checking references. She tells you that’s not a problem but her former boss is out of town for several weeks. She also mentions she badly wants this job, but it is important for her to know right away because she has another offer and can’t put off giving them an answer. You make her the offer on the spot, she accepts and starts work two days later.

After a short while, it becomes clear that Kathy is not the right individual for the job. Although she worked in a similar environment on a similar system, it is evident that she hasn’t really mastered that system and makes many mistakes. In addition, her work ethic (or lack of) does not fit in well with your organization’s culture. She has to be dismissed. But hey, what’s the big deal? What did you really lose? Money? Productivity? A little respect from the other department employees? These things matter, a lot. And although reference checking provides no guarantee job applicants will become star performers, it can help shift the odds in your favour — if it is done right.

Reference checking is the process of gathering information about a job applicant. Whereas one purpose of checking references may be to verify information the applicant has given you, there are others. You are attempting to obtain objective evidence of an individual’s knowledge, skills, experiences, preferences, values and work habits in order to determine if he or she is qualified for the position and would be a good fit with your organization. Talking with the right person and asking the right questions are crucial.

The next time you need to obtain a reference, you might refer to a few tips:

Ask the applicant

• to provide the names of at least three job- related references. It is important to check more than one reference in case one respondent is extreme in his or her views resulting from a negative relationship or one that crossed professional boundaries. Also, different individuals observe different as-pects of another’s behaviour. Checking with several people offers a more comprehensive picture.
• to sign a waiver permitting you to contact references and anyone else who may have knowledge of his or her prior work performance. Waivers serve as written permission to speak with others about a candidate. It is important that reasonable care still be used, i.e. conversations must be job-related and confidentiality must be respected.
• to provide details of any “unusual” responses he or she thinks you may receive when contacting a reference. A candidate may be more willing to direct you to those who have the most information about him or her if given the opportunity to give their side of a contentious issue. This type of exchange also bodes well for the future when the employee knows from experience that his or her view will be requested and listened to.

Ask the referee

• does the organization have a policy with respect to providing employment references? This will help you distinguish between a reference that is brief because the organization is attempting to protect itself legally and one that is scant because little information exists that is positive.
• confirm positions held, promotions given and whether or not merit salary increases were awarded.
• inquire how long the referee has known the applicant and in what capacity.
• confirm knowledge and skills possessed by the candidate which are essential for the position for which you are hiring (and ask for examples).
• how the applicant behaved with co-workers and supervisors (with examples).
• how the individual coped with adverse situations (e.g. mistakes, criticism, personality conflicts) and ask for specifics.
• about the individual’s dedication to his or her work with examples (e.g. attendance, desire to improve processes or  own abilities in order to do a better job).
• if the applicant appeared satisfied with this kind of work or if he or she seemed to desire another career direction.
• what led to the employee’s departure.
• if the organization would consider rehiring this individual in the future.

Also ask

• what were the candidate’s weaknesses and how did they affect job performance?
• was the candidate aware of his or her weaknesses? What did he or she do to correct them?
• what were the applicant’s major accomplishments within the organization?
• how does this candidate compare with others at the same level? In what specific ways is he or she stronger or weaker?
• how can one maximize this individual’s talents and effectiveness?
• what is important to know about this applicant that may not be readily apparent from an interview?
• is there anyone else that should be contacted about this individual? (Ask only if you have a waiver.)

Other tips

• Ask the applicant for copies of previous performance appraisals to supplement the information you get from references.
• Use a standard reference checking form and add questions specific to the job before contacting the referee.
• Inform the referee that you will be contacting other references. This may reassure someone who is afraid of standing alone when giving negative information.
• If information received is inconsistent, contact another reference or discuss further with the applicant.
• Use the information obtained to help design initial training and development programs for the employee.
• Verify the existence of degrees and memberships in associations by contacting these institutions directly or by asking the candidate to supply evidence.
• You may accept written references provided by the applicant but do not use these as a substitute for checking with others and inquiring about the things that are crucial to the job.

Don’ts

• Do not ask questions that would be illegal if you asked them directly to the applicant (e.g. questions regarding race, religion, marital status, etc.)
• Do not bother checking personal references. The individual likely has a relationship with the applicant that might make it difficult to be honest and objective. Besides, one’s personal attributes may not directly impact an individual’s ability to do the job, and if this is so, may be considered discriminatory if used against the applicant.
• Do not contact someone from the candidate’s current place of employment unless expressly given permission to do so. When you have decided to offer an applicant a job, you may then state that the offer is contingent on a good reference from the current employer.
• Do not immediately dismiss an applicant solely on the basis of a bad reference. Consider that the contact may be biased and there may be more to the story than you’re being told.

As you know, hiring a qualified individual who is a good fit with your organization can be a challenge. While a sure thing may be too much to hope for, strategic choices that include the practice of checking references may help to save money, increase productivity and maintain good morale.

Carolyn Cohen, CA, MSW, runs a training and human resources consulting practice in Toronto and is CAmagazine’s technical editor for People Management. She can be reached at c.cohen@sympatico.ca

RELATED LINKS

Checking references, HRZone

Reference checking, HR Monster

The polished interviewer, by Carolyn Cohen, CAmagazine, November 2002

Before you hire, do a background check, by Anna Maria Greene, CAmagazine.com