HOW TO AVOID HIRING MISTAKES AND LOWER EMPLOYEE TURNOVER…. REFERENCE CHECKING CAN PREVENT HIRING THE WRONG PEOPLE FOR THE WRONG JOB

There are many who say reference checking is fast becoming a "lost art"… something of great value that could be lost forever. Why are so many companies not performing reference checks these days?

We live in an age of legalism. Companies, especially those with "deep pockets", want to avoid legal entanglements and litigation. Many companies have strict policies that forbid releasing information regarding former employees other than verifying employment. Typically, requests for information regarding former employees are forwarded to the Human Resources Department. The HR people often have limited knowledge about employee performance, etc. For these reasons, many companies question the value of reference checking.

To those who believe reference checking is a "lost art", I believe you have it "half right". We agree that reference checking, like art, can be of great value. But we don’t agree that reference checking should become something of the past…a step we used in our hiring processes many years ago. But like art, its value is variable. The information we get can be "helpful" (and it always is) to "priceless" by helping us avoid a terribly expensive hiring mistake. The first rule of reference checking is to just do it!

Consider creating a policy that reference checking must be done before offers can be made. Reference checking can be a "deal maker"…or a "deal breaker". It’s amazing what people will tell us….like these actual examples of references commenting to me on candidates….

"We have a rule about not giving out information. But…let me put it this way. If I was shipwrecked in the middle of the ocean, and could choose six people to go in the life raft with me…he wouldn’t be one of them."

"Out of the 8 people reporting to me where would I rank Greg? … A minus two."

"He just couldn’t make up his mind that this was what he wanted to do. So, we finally agreed it was best to part company."

Sometimes a reference will vindicate a candidate. A candidate for a Vice President of Manufacturing warned me that his boss would probably give him a bad reference. The boss had a history of retaliating against people who resigned. He considered resignation an act of treason. So I called a third party, one of the candidate’s peers in the company, who knew both men for a reference. He gave a glowing account of the candidate and confirmed that the boss got very upset when people left.

It’s true that getting quality information from references is becoming more difficult because of the world we live. But, it can be done. The method I’ll share with you will certainly improve your odds…but, it all begins with your commitment to…DO IT!

I have used a method of reference check that has been amazingly successful, even the age of legalism, and even with companies that have policies against giving references. It’s a four step process, easy to implement…

STEP ONE: Assign one interviewer in your hiring process to collect references. You should only be interested in references from past and present supervisors. Get their names and telephone numbers. The interviewer should explain your requirement to talk to references before hiring. Get the candidate’s permission to do so.

STEP TWO: You must prepare the reference for your call and enlist the candidate’s help. Ask the candidate to call the supervisor and ask him if he would give you a positive reference. Then the candidate should tell the supervisor that he will be hearing from you within two days.

STEP THREE: I recommend that the hiring manager make the call. The call should not be made until after all of the interviews have been completed and the candidate is considered worthy of hiring. Interviews always raise questions that can only be answered by the candidate’s immediate and/or past supervisor. Prepare yourself for the call. You can assume the call will be short so have a list of four of five questions you would like to ask.

STEP FOUR: Make the call. If a receptionist answers, ask to speak to the reference using his first name. If you are asked for the reason for your call, explain that you’re a friend and that he is expecting your call. Again, you should expect a short conversation. Be prepared, move quickly, and take notes. Obviously be very courteous and grateful for his input.

The key to talking to former supervisors is enlisting the help of the candidate. If the candidate is unable to get the co-operation of his supervisor, there could be a serious issue. It’s certainly a caution flag that something could be wrong.

This system isn’t perfect. But using it will dramatically increase the odds of making contact with the reference. Reference checking can be a valuable component of a hiring process. Use it with an open mind. Assuming it’s a lost art could deprive you of a valuable source of information and contribute to serious hiring errors.

William E. Miller

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