Tips & Tricks

The Essential Guide to Reference Checks

March 3, 2024 0 comments

In a hurry to hire a new team member, or in the excitement of having found the ‘perfect’ new candidate, some employers rush through reference checks. Sometimes, they will skip them altogether. Although reference checks can seem unnecessary at times – especially after an impressive job interview – we’re here to tell you they are essential for avoiding major problems after you hire someone.

Having a process in place for reference checks can significantly reduce the costs or legal risks associated with making a poor hiring decision. Compliance concerns aside, reference checks are simply another way to confirm you’ve made the right decision about a candidate. We’ll explain why every reputable labour hire and temporary recruitment agency uses them, and how to make them a seamless part of your hiring process.

What is the Actual Purpose of Reference Checks?

In job interviews, asking candidates suitable and effective questions form an essential part of the decision-making process, but for some employers, this ends at the interview!

It’s easy for a candidate to look good on paper. Checking references, however, ensures you get a second opinion of the candidate, from the point of view of someone who has actually worked with them.

Employers often use reference checks to gain insights into a candidate’s skills, abilities, and work performance. Having asked the right questions, you’ll have more insight into how best to train and manage someone as they transition into their new role.

Reference checking also allows managers to get a better idea of how a candidate might fit into the culture of an organisation before an official job offer is made. Obtaining a reference check can provide valuable insights into a candidate’s personality and work ethic – crucial information for determining their cultural fit.

How to Do a Reference Check

Start The Process as Early As Possible

During job interviews, ask candidates whom they would provide as references. This communicates clearly that this is a valued (and compulsory) step in the recruitment process. This can also be used as an opportunity to observe a candidate’s reaction. Their body language and how easily they answer this question will speak a thousand words.

Be Aware of Potential Bias

It goes without saying that a candidate, if they want the job, will provide referees who speak highly of them. Referees may be friends of the candidate, so it’s important to ask the right questions.

Be sure to discuss any limitations or areas of development the candidate has, as well as skills they could improve on. Speaking to a candidate’s current manager would be ideal, but of course, this scenario is not always possible, as they often won’t want their current boss to know they’re looking for a new job.

Whilst previous managers will still provide a level of insight, there are alternative options. Is there a manager who has recently left the business? Could the role be offered on the condition of a positive manager’s reference?

Plan Your Questions Carefully  

Reference checks should be more than just a quick two-minute chat! When planning your questions, think back to both the core skills and competencies that the role requires. They should prompt the referee to talk about the candidate’s actual experience and skills – so don’t be afraid to probe and ask for examples.

It pays to read between the lines too. There is a lot to be learned from what isn’t said, as well as from the referee’s tone of voice or any hesitation in answering questions.

Lastly, don’t forget to take notes from the phone call, especially if you have a few candidates lined up to check. It can be as easy as creating a spreadsheet and logging the date/time of each check (as well as any relevant details) for easy reference. As a temp recruitment agency with a team handling multiple reference checks per week, at OneStaff we consider it essential to take notes during these conversations to ensure we’re not relying on memory alone.

Allow Time to Gather Information

Reference checks can be a challenge to manage in high-volume recruitment environments, such as labour hire for large projects or low-skilled roles. However, it’s important to incorporate them into the overall recruitment schedule to avoid last-minute rushes or delays in the hiring process. You may not be able to conduct all reference checks for a new hire in one day, so it’s sensible to allow for a few days to get them done.

Do Your Due Diligence

As much as we’d all like to think reference scams don’t happen, they certainly do! If anything raises alarm bells, it’s probably for good reason. The only way to counter this is to do your due diligence.

As part of the reference checking process, cross check the details of the referees to make sure they are who the candidate says they are. As well as calling the referee’s landline directly, look them up on LinkedIn to make sure they work where the candidate says they work, and that the job titles are the same. If a mobile is the only contact number that has been provided, it’s worth checking with the organisation that this also matches up.

Get Support from a Leading New Zealand Temp Recruitment Agency

Knowing how to do a reference check is a valuable skill for any hiring manager. Integrating reference checks into your recruitment workflow can enhance the quality of your hires and mitigate risks, ensuring the best possible outcome for your organisation.

After all, the more you know about potential employees, the more confidence you’ll have that they’re the right fit for your team!

By working with a temp recruitment agency and labour hire specialist, you can outsource reference checks to the experts. For peace of mind and assurance that candidates are screened effectively, get in touch with the OneStaff team for assistance. With branches across New Zealand, We can help you manage all the admin of the recruitment process and find the most suitable candidates for your business.

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