Reference checking can be a valuable human resource management tools for gathering information on past performance of applicants. Past performance may be a strong predictor of future performance. A reference check can also serve as a method for preventing discrimination, harassment or violence in the workplace, and for promoting a safe work environment for current and future employees. Conducting a thorough reference check can help you avoid or fight charges of negligent hiring.

Reference checks should be made on all new employees. The reference check serves as an important part of the selection process. An investment in reference checking can reduce costs and increase productivity by helping to screen for a good fit with the essential functions of the job, avoid probation failures, and ensure the hire of a successful employee.

For Your Protection

To minimize liability:
The reference checking processes should be assigned to staff that are trained in conducting reference checks;
Tailor the reference or background check to the job;
Have applicants sign a written release of information for employment purposes;
Check as many employment and personal references as possible before making an offer of employment;
Verify academic degrees, professional certifications or licenses, etc.;
Be consistent, ask the same questions of each reference;
Always ask if the employee is eligible for rehire; and
Maintain written documentation, including a notation from references that refuse to respond or produce no useful information.

How to Conduct a Reference Check

Reference checks should be conducted in compliance with all federal and state laws and regulations including (in the United States) the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, the Uniform Guidelines on Employee Selection Procedures, and the Fair Credit Reporting Act, as applicable. The Americans with Disabilities Act prohibits asking non-job-related information from previous employers or other sources. Review the duties of the position and the application materials. Make a list of facts or qualifications to verify and a list of questions to ask.

Examples of questions to avoid include those regarding marital status, religion, age, race, health-related issues, child care, transportation, worker compensation claims, and other non-job related questions. For example, if the job does not entail supervision, do not ask about supervisory skills. However, questions can and should be designed to uncover conduct problems such as Has the person ever been disciplined or investigated for serious misconduct?'

If the applicant indicates that the current supervisor should not be contacted, ask about contacting the current supervisor contingent on a job offer. If the applicant still declines they should be told that the lack of the current supervisor's reference may affect the hiring decision.

Reference checks may be completed by telephone, in person, by mail, Internet or fax. A personal phone call is usually best. Useful references may come from former supervisors; however other good sources can include coworkers, clients, Human Resource departments, executives, and personal references.

When conducting reference checks, be friendly and business-like. Introduce yourself and indicate you have written consent for the reference check or that the applicant listed that person as a reference. Briefly describe the essential functions of job. Start with basic verification questions (dates of previous employment, job duties, etc.) and then transition into more specific performance-based questions. Ask follow-up or clarification questions if something isn't clear. Listen carefully to the responses. Ask the reference at the end of the conversation if they can think of or recommend anyone else with whom you should speak about the applicant's qualifications for the job.

Utilizing the information

1. Don't accept all the information at face value; look at the context in which it was given. Personality conflicts and different work cultures may unfairly influence responses.
2. It is best to use the information from a combination of different methods to make an overall assessment; i.e. application materials, interviews, and reference checks.
3. If you are in doubt about a candidate's qualifications be sure to check additional references and verify statements.
4. All Information obtained from the reference and background check process should be used only as part of the employment process and kept strictly confidential. Access to the information should be restricted to Human Resource staff and the hiring authority.