The ultimate guide to reference checks: how to hire with confidence and make the right choice

It is essential that as an employer, you are hiring staff that are correctly suited to your business. An easy way to do that is to conduct a reference check! This Legal Kitz blog will inform you as to how to complete a reference check.

What is a reference check?

A reference check is the process of verifying information about a job candidate’s past employment, qualifications, and character by contacting individuals who can vouch for their professional and personal abilities. Typically, the references are people who have worked with or supervised the candidate in the past, such as former managers, colleagues, or professors.

During a reference check, the employer or hiring manager will usually reach out to the references provided by the candidate to ask questions about the candidate’s skills, work ethic, and character. The questions may vary depending on the job requirements, but usually focus on the candidate’s job performance, reliability, interpersonal skills, and any potential red flags.

A thorough check can provide valuable insights into a candidate’s suitability for a position and help the employer make an informed hiring decision. It can also help to confirm the candidate’s qualifications, uncover any discrepancies or omissions in their application, and highlight areas where they may need additional training or development.

When to complete a reference check

Reference checks are typically conducted towards the end of the hiring process, after the employer has reviewed the candidate’s application, interviewed them, and determined that they are a strong contender for the position. The timing of one can vary depending on the employer’s hiring process and timeline, but it is typically one of the final steps in the process.

It is conducted to confirm the candidate’s qualifications, verify their employment history, and gather additional information about their skills and experience. This information can be critical in making a hiring decision and determining if the candidate is the right fit for the role.

It’s important to note that checks should only be conducted with the candidate’s permission and after they have been informed that they are being considered for the position. Additionally, they should be conducted in a consistent and fair manner, with the same questions asked of each reference to ensure that the hiring decision is based on objective and relevant information.

People conducting a reference check

Candidate selection for reference check

Deciding which candidates to check is an important part of the hiring process. Employers typically select those who have advanced to the final stages of the hiring process after an initial screening, resume review, and interviews and are serious contenders for the position. In some cases, employers may decide to conduct checks on all candidates who apply for a job, particularly if the position involves working with vulnerable populations or requires a high level of security clearance. Ultimately, the decision on which candidates to reference check should be based on the employer’s hiring process and the specific requirements of the position.

What is the reference check process?

The structure of a reference check can vary depending on the employer’s preferences and the nature of the position being filled. However, most will follow a general structure to ensure that the employer gathers relevant information about the candidate’s job performance, qualifications, and character to ensure they make informed hiring decisions and reduce the risk of hiring the wrong candidate for the job.

The first step is typically to obtain the candidate’s permission to contact their references. The employer will then ask the candidate to provide a list of professional references, which may include former managers, colleagues, or professors.

Once the employer has received the list of references, each reference will be contacted by phone or email to request a reference check. During this, the employer will typically ask a series of open-ended questions to gather information about the candidate’s job performance, including their strengths, weaknesses, and areas for improvement.

In addition to these questions, the employer may also ask for verification of the candidate’s employment history, academic qualifications, and any other relevant information provided on their resume or application.

Reference check questions to ask

Each check will vary depending on the role and its responsibilities, however the main priority is to gain more insight into the prospective candidate and to keep the questions open-ended. Some general questions to follow are:

  • How would you describe the candidate’s work performance?
  • What were the candidate’s primary responsibilities while working with you?
  • Can you describe a time when the candidate demonstrated exceptional problem-solving skills?
  • What was the candidate’s biggest accomplishment while working with you?
  • Can you provide an example of a project or assignment the candidate successfully completed?
  • How did the candidate handle difficult situations or conflicts in the workplace?
  • Would you rehire the candidate if the opportunity presented itself?
  • Can you describe the candidate’s communication and interpersonal skills?
  • How did the candidate work in a team or collaborate with others?
  • Was the candidate reliable and punctual?
  • Are there any areas for improvement or development that you would recommend for the candidate?

What is an automated reference check?

This is when the employer or hiring manager implements technology to streamline the reference check process. Instead of manually contacting references, they will send out questionnaires or surveys to gather feedback from references. The system will then compile the responses and present the employer with a report on the candidate’s qualifications, work history, and character. They can save time and improve the consistency of the process, but they may not provide the same level of detail or nuance as a human-to-human conversation. Additionally, some candidates may be wary of automated checks and prefer to provide references that they have personally vetted.

What is a background check?

Completing a background check after a reference check is a common practice in the hiring process, particularly if the company is dealing with sensitive information. A background check can provide additional information about a candidate’s criminal history, credit history, and employment history. Employers may also verify a candidate’s education, certification, or professional licenses through a background check. A thorough background check can help employers make informed hiring decisions and reduce the risk of hiring a candidate who may pose a risk to the company or its employees. However, employers must follow applicable laws and regulations when conducting them to ensure that all candidates are treated fairly and without discrimination.

Legal advice

If you need any assistance with conducting a reference check, Legal Kitz is here to help! To arrange a FREE consultation with one of our highly experienced solicitors, click here today, or contact us at [email protected] or 1300 988 954. You can also check out our sister company, Business Kitz’ and its subscription service today to access our full range of legal, commercial and employment documents to begin your business with a solid foundation that ensures compliance.