Hiring 101

Reference checks are a critical part of the hiring decision

Hiring new staff is oftentimes difficult. Making key staffing decisions can be daunting, and it’s important to keep a few rules in mind. One of these is checking references.

According to Larry Smith, president of Toronto-based recruitment firm Kathbern Management, checking references is a very important step in the hiring process. While some hiring managers want to “go with their gut” when they meet the perfect candidate, others swear by doing thorough checks.

What is a reference check?

Smith: A reference check is conducted to verify information given to you by a candidate. In its simplest form, it’s ensuring that facts about the candidate, such as employment history, job titles, length of employment, and education, are correct.

It can also include a search for personal information, with the candidate’s permission, about the possible existence of a criminal record, educational achievements, driver’s license status, and credit history, depending on the industry and role that the candidate will be engaged in.

Reference checks help employers to ensure that the candidate is giving them the correct information about their past. Questions are asked of his or her references to get a feel for the candidate’s working style, management style, and anything else that may be relevant to the role.

Which candidates should I conduct a reference check on?

Smith: You want to do a reference check on every candidate you’re considering hiring, no matter how good the candidate may seem. When you interview a candidate, you’re taking their word as the truth, but unfortunately, some candidates aren’t always the most forthcoming.

Any truly great candidate is going to have excellent references, so verifying that fact through the reference-checking process should be easy. Some people can be nervous during interviews, or shy, or chatty, and that doesn’t mean they won’t be a great person to have on your team. Sometimes calling references even will turn a “maybe” candidate into a “yes” candidate, depending on the situation.

What references should a candidate be asked to provide?

Smith: Ideally, candidates should be asked to provide four references: two former supervisors who managed them, one co-worker and, for candidates who will be in a management role, one person who reported to them in the past.

However, candidates can be understandably unwilling to provide references from their current employer. Sometimes when a candidate has had long service at an organization, references from previous employment may be difficult to find, so some flexibility may be required in the number and type of references requested.

What questions should I ask?

Smith: Asking the right questions is a vital part of doing reference checks. You want to make sure that the referee is giving you information that will actually educate your hiring decision. Be sure to take time to plan your questions.

Also, don’t ask closed-ended questions. Ask “What dates were the candidate employed? What was his last title?” instead of “Was he employed from January 2008 until December 2011? Was his title assistant manager?”

These questions are important to get a feel for how the candidate works with others. If you’re looking for a manager or supervisor, this is even more important. Be specific in your line of questioning, and ask about specific situations.

Some examples are:• Tell me about a time the candidate had to deal with an employee with poor performance.• How would you describe his or her management style?• Tell me about a time the candidate had to deal with a stressful situation.• Does he take feedback well? Tell me about a time he had to receive some not-so-great feedback. How did he respond?

A good way to end the call is with this question: “Given the chance, would you like to work with him again?”

If you ask good, pointed questions, you will get the true story. However, a less than enthusiastic response to a question typically is a negative response from someone who is just trying to be nice.

So, how important are reference checks?

Smith: A lot of candidates may seem amazing, but a reference check will reveal if they’re a good fit for your company.

A reference check will save your company time and money in the long run, so take the time to call those references and find the perfect hire.

Kathbern Management, 416-915-4044 ext. 101, www.kathbern.com

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation, mark@mercantilema.com, www.mercantilemergersacquisitions.com.