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October 11, 2010

101: Reference Checks

Let’s face it: Hiring people is a chore. Sifting through résumés, conducting interviews, trying to make a decision on who is the best candidate. It’s a major time drain for all parties involved.

But before you decided to skip the reference check step, think again. Here is some expert advice on how to make your reference checks meaningful and help you avoid making a bad hire.

Ask the right people. Relying solely on a prepared list of references is guaranteed to get you a skewed sense of the candidate, according to an article by Jane Auster of HCareers.com. Auster recommends a 360-degree reference check of a group of people who know the candidate.

A 360-degree reference check allows you to “gain a well-rounded view of the individual that transcends the facts on the résumé,” Auster writes.

Document everything. It is very important for companies to document any contact they made or didn’t make during a reference check and to have policies and procedures for references in place.

Jason Gillikin, a contributor at eHow.com, encourages companies to “consult an attorney or human-resources generalist about documenting reference calls, because a decision to decline employment based on a bad reference can sometimes lead to lawsuits."

Gillikin also recommends having a standard list of questions prepared for all reference checks done by phone.

Be consistent. Treating every candidate for a job differently will make the hiring decision more difficult, and can open up the firm to legal trouble. That’s why Shawn Smith at SideRoad.com recommends being consistent throughout the reference check process.

“Even in the face of pressure to fill a position as quickly as possible, do not cut the [hiring] process short,” Smith writes. “Any time you save will be more than lost in defending a negligent hiring lawsuit.”

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