Reference Checks in Recruitment

Background

Reference checks are commonly used in the recruitment process to verify a candidate’s work history and qualifications. However, the research suggests that reference checks are poor predictors of future performance, which, after all, is what the selection process is about; you are trying to predict the future performance of a candidate. The research suggests one should not put too much weight on references, however, they need to be done and any selection process would feel incomplete if they were not.

Effectiveness of Reference Checks

A seminal meta-analysis by Schmidt and Hunter ranked reference checks low in effectiveness compared to other selection techniques like psychometric testing and structured interviews. This finding underpins the argument that while reference checks should not be heavily relied upon, they are still necessary for due diligence. There are many examples of where large companies, such as Telstra, have hired senior executives only to find out later they had been misled about the candidate’s qualifications and experience; so at least use reference check as a probity type check.

Motivation of Referee

Another reason for my reluctance to put much weight on them is, for want of a better description, the motivation of the referee. We know that our judgements of people are biased and subjective. A referee could be a friend of the candidate, an ex-boss who didn’t like them, a current manager who is happy to hand you their problem, or a well-meaning person who does not want to sabotage someone’s chances of getting another job even though they know there are performance issues with them at work. This needs to be factored in and consider when deciding on the reliability and value of the reference check.

Another issue with reference checks can be related to the length of time it takes and the demands on the time of the referee. If the referee is rushed or under some pressure, or simply does not like doing them, then that will affect their level of engagement and seriousness, thus, increasing the odds of you getting unreliable information.

     There are many examples of where large companies, such as Telstra, have

hired senior executives only to find out later they had been misled about

the candidate’s qualifications and experience, so at least use reference

 check as a probity type check.

Shared Experience, Different Assessment

I cannot come up with a pithy catchphrase for this reason, but it goes along the lines of “shared experience, different assessment”. For example, I recently saw a movie with my two adult sons, and I thought it was slow and boring and I could not wait for it to end, whereas both of my sons loved the movie. Same information, but completely different assessment or judgement; this phenomenon happens with reference checks.

Context

We do know that a person doing the same role in a different business does not automatically mean they will do it well in another business. You could have an accountant who worked under a demanding boss, tantamount to bullying, and decides to resign and apply for a new job. The accountant most likely did not perform to their best under their bullying boss and the reference check will reflect that. Whereas the accountant gets a new job in an organisation that values quality working relationships and is free from bullying and other toxic behaviours, and the accountant becomes a high performing employee. However, if you put too much weight on the original reference check you could have missed a good employee. The context in which the candidate worked will affect their reference check. This often happens in sport whereby a poor performing, or difficult athlete, changes teams and coach and their performance improves significantly.

Improving Reference Checks

To enhance the effectiveness of your reference checks, focus on the following aspects:

Method of Delivery: A telephone conversation is superior to a request for a written reference. With a written reference, you miss the paralinguistics, such as tone of voice and the slight or subtle pauses when someone is being diplomatic. You simply do not get that with a written reference. There is also the practical problem with written references in getting people to do them in a timely manner and hopefully saving you from following up with the referee. A written reference could also be completed by a third party as delegated by the referee.

Engaging the Referee: Personal conversations can help build rapport and encourage honesty. Ask about the nature of the referee’s relationship with the candidate and whether they are comfortable providing an objective reference.

Reference checks are necessary in the selection process,

however, they can be problematic due to their subjective nature

 and our inherent biases, be it the referee or the hiring manager.

Forced-Choice Questions: Forced-choice questions can promote honesty and objectivity as either answer could be good or bad, depending on the context of the role. Examples include:

1.     “Does X prefer to work on their own or in a team?”

2.     “What would be worse for X, submitting a project late, or submitting it on time with imperfections?”

3.     “Does X show initiative, or would they prefer to follow agreed systems and procedures?”

There are obviously many questions you could ask depending on the role and the candidate’s CV, however the more forced-choice questions you use the better.

Standard Questions: All of that said, you do need to ask the more obvious questions, such as confirming their actual working history, qualifications if relevant, and their role(s). As well as asking the usual questions around conscientiousness, work style and interpersonal skills.

Convergence of Data: The last step in the reference check journey is how to use the information you have in the context of all the other data you have about a candidate, such as their CV, psychometric testing, and impressions from the interview. Hopefully, you get a “convergence of data,” i.e., all the information you have is consistent and then you can be confident you know what you are getting if you hire the candidate. It is when you get conflicting data that problems may arise. But, if you are forced to decide on the available data, I would put the least weight on the reference checks.  

Summary

Reference checks are a necessary part of the recruitment process but should be approached with caution due to their subjective nature and potential biases. By asking the right questions, engaging referees effectively, and using reference checks as part of a broader selection strategy, their limitations can be mitigated. Always consider the context of the candidate’s previous work environment and seek convergence across multiple data sources for the best hiring decisions.

For a free “Reference Check” please contact Fermion.

About the Author:

Christopher Apps is an Organisational Psychologist and the owner of Fermion. He stays updated on the latest psychology research and shares evidence-based insights. The focus of Fermion is "Psychometric Testing for Recruitment" and “Recruitment to Retention: How to Select Good Staff & Keep Them”. If you would like to learn how to select good staff and keep them, please feel free to contact us at Fermion.

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