[ Volume Twenty Five ]

Article Overview: This article examines the importance of employers having proper reference checking processes and procedures in place and to maximise the opportunity of hiring people who will enhance their business and to minimise the chances of a 'problem hire'.

We all recognise that past behavior is often the best predictor of future performance and a professional process for reference checking is one of the most effective methods of assessing this. An Australian survey of 5,000 employees found 85 per cent of companies performed reference checks. But just as not all companies are created equally, there are huge variances in the quality and effectiveness of reference checking processes.

"Checking references is vital before agreeing to employ someone", states Karina Samperi. "You wouldn't buy a second hand car without having it checked over first, so of course you need to verify a candidate's skills, qualifications and experience". Samperi's background in training and office management has led her to create her successful consultancy in business efficiency processes - and she is adamant that sourcing the right people is essential. "You need to confirm that your preferred candidates will be a good fit with your corporate culture, no matter how large or small your business, because the wrong person can have a huge impact and cost you money, profit, time and customers", she says.

"Reference checking, when done properly and professionally, is a valuable means of confirming information provided by a job candidate and of obtaining insights into a candidate's past work performance", agrees Andrew Wood. As the Partner, Workplace, Health and Environment Group at Hunt & Hunt, Lawyers Wood is also the legal adviser on employment issues to the RCSA (Recruitment & Consulting Services Association) and it's 3,200 strong membership.

But he cautions that reference checks alone should not be the sole means of selecting employees. "Information obtained on a reference check will not always be a good predictor of performance in a future setting", he says. "We would all be familiar with the experience of a person who has performed poorly in one setting only to flourish in another", he says.

"It is important therefore that staff selection decisions be supported by processes in addition to reference checking", says Wood. "This is particularly so when there might be some limit in the ability of the referee to provide comprehensive information - such as limited knowledge of the candidate, limited experience of the candidate's work performance either in terms of duration or scope of work performed, degrees of separation between the person providing the reference and those who actually worked with the candidate, 'agreed references' and so on".

Woods also notes that both recruiters and employers must be aware of privacy and defamation issues. "The courts have held that a duty of care will generally be owed to the candidate and to any person who relies on the reference", says Woods. "This can discourage some referees from putting themselves in a situation where they will willingly provide information about a candidate and other laws such as privacy laws and defamation laws can also have this effect".

There are even cases where courts have held that an employer is bound by an implied duty of trust and confidence to avoid doing anything that could unreasonably prejudice a former employee's obtaining future work. "That is a very wide duty and the full scope of it is still being discovered", he says.

"In many instances it will be necessary to confirm information obtained on a reference check by taking it back to candidate for comment. This can be necessary in order to comply with the National Privacy Principles that require that a person using personal information should take steps to ensure that it is accurate, current and complete. It also helps to ensure that individuals remain in a position of some control over their personal information".

Verbal Checks Essential

There's an old HR saying; "written references are not worth the paper they're on". Today, many organisations are fearful of litigation and simply provide a 'statement of service', which verifies that a person held a stated position for a stated amount of time. This should always be followed up with a phone call to confirm these and other details.

• Verbal references often result in the referee proving more candid and open information than they would commit in writing.
  
  
• They allow the interviewer to probe for more detailed information, tailor questions and pick up on the referee's 'tone' which can be a giveaway as to their true feelings about the candidate, even while their language may be neutral.
  
  
• Always listen for what the referee does not say. If they hesitate or seem reluctant to provide feedback on past work performance, consider if this indicates a candidate's areas of weakness.
  
  
• Keep in mind that personality differences do occur. We have all had the situation where we have performed well but not necessarily loved our boss. This may cause a referee or manager to comment less or more enthusiastically about some candidates and be wary of both lukewarm and overly-enthusiastic responses.
  
  
• Avoid calling referees on mobiles - always call the company landline first, check the person's name and job title then ask to be put through. There have been numerous cases where candidates have sought to obtain a job through arranging for workmates or friends to pose as HR managers or line supervisors to ensure a positive reference.
  

References:

1. Hunt & Hunt: www.hunthunt.com.au.
2. RCSA: www.rcsa.com.au.
3. Samperi Consulting: www.samperi.com.au.

About Regent Recruitment Regent Recruitment is a consultancy that assists leading Australian employers to attract and retain talented staff on a contract, temporary or permanent basis. Whether we are filling one permanent role or recruiting contract staff for a 400-seat call centre, we deliver the same high level of service. Operating nationally, the company is unique in that it combines the capabilities of a large-scale multinational recruitment firm with exceptional service levels typically only associated with small boutique agencies. How can we assist you? We would welcome the opportunity to have a confidential meeting to discuss your staffing needs in more detail. If you are interested, in the first instance please call Howard Mereine, Group General Manager, on (03) 8646 9150 or e-mail Howard at hmereine@regentrecruitment.com.au. We look forward to speaking with you.

This article was licenced by Regent Recruitment for the Regent Recruitment client newsletter.
Written by Alison Aprhys for Quinntessential Marketing Consulting Pty Ltd.


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The views and opinions expressed in this document are those of the authors and do not necessarily reflect the view of Regent Personnel Pty Ltd.