The Legality of Reference Checking

It is wise to get the candidate’s written approval first – not only to check references provided, but to pursue additional references of your choosing that will give you needed insight into the prospect’s business and educational background.

You should always have a candidate sign a release directed to their former employers, relieving the employers of accountability for references they provide. You may also, utilize the candidate by letting him know who you want to speak to and have the candidate arrange for those people to contact you directly.

Can you be liable if you don’t check references? YES, this is known as "negligent hiring."

A word of caution: The same discrimination laws apply to reference checking as to interviewing. You cannot probe into marital status, age, handicaps, religion, color or national origin for the purpose of using that information in your hiring decision.

Also, remember the information you gather during the reference checking process must be kept confidential. It is not even good practice to discuss this information with other employees in your organization, unless they have a need to know.

Basic Interview Questions

The answer to these questions might help give you the facts before you begin to dig into the background of a candidate. In most cases, you can get more effective responses to a series of questions if you start with the simple ones. They are easy to answer, so there is no pressure on the respondent. After introducing yourself, begin with these basic questions:

1. I’d like to verify the dates of employment, from ___________ to __________.
2. What type of word did he do? Title?
3. Were his earnings $ _______ per ______?
4. Did that include bonus, overtime, and incentives?

Nine Tough Questions

To find the truth, you have to ask probing questions:

1. How does the candidate compare to the person who’s doing the job now? Or what characteristics will you look for in the candidate’s replacement?
2. If the candidate was that good, why didn’t you try to retain him?
3. When there was a particularly urgent assignment, what steps did the candidate take to get it done on time?
4. Since, none of us are perfect at everything we do, please describe some of the candidates shortcomings.
5. Please describe the job functions the candidate was previously doing.
6. What kind of people did the candidate have difficulties with?
7. What type of situations did the candidate have difficulties with?

Who Should You Contact?

1. The Obvious: These include the references the candidate gives to you.
2. The Immediate Supervisor: Also, try contacting the person above the immediate supervisor and the person below. These are the people who should know the candidate best.
3. A Reference’s Network: Ask some of those who give you references to also give you the name of another person to contact in the organization. Then ask that person to recommend another, and so on.
4. Human Resources Department: HR departments are less candid than others when giving references. And, although they can confirm the position and dates of employment, HR people generally do not disclose any additional information.

Bottom line, be creative in getting the information you need to make the best hiring decision possible.

How to Evaluate References Effectively

Be Objective: Neither longevity on the job, nor promotions are necessarily proof that an employee was much more than adequate. Sometimes incompetent people who were very well liked have been known not only to survive on the job, but also advance.

When reference checking, if the first and the most important reference extols the virtues of the employee, there’s a chance that you will become so satisfied with the positive comments that you may decide not to explore the candidates background any further. You’re not only happy to have found the right person for the job, but you may also fool yourself into believing that you can now end the time-consuming task of reference checking any further.

Think again!

The first and most important reference contacted may have felt sorry for the well liked, but inept, former employee and might be willing to do anything to help that person out. Realize that it pays to be prudent and exercise some caution with reference checking – take you time and get what you need.