The Importance of Pre-employment Reference Checking – A Wild Ride of Trust, Truth, and Porkies

Let’s face it—recruiting a new employee can feel like buying a second-hand car. You’re making a big decision, and there’s that nagging voice in your head wondering “What’s hidden under the hood?” The Resume looks sparkling and the interview was polished but what if they’re not the fit-for purpose candidate they claim to be? That’s where pre-employment reference checking comes in - the hero of the recruitment process.

Reference checking is like Googling a potential date before you meet them in person. You’re trying to figure out whether they are the real deal or if they’ve been embellishing their accomplishments beyond their actual career experience. You don’t want to be ‘that’ employer who hires the human version of a dodgy used car with a duct-taped exhaust pipe and mysteriously low fuel efficiency!

Why Reference Checking Matters

A Transport Operator was looking to hire a new truck driver and found Jack, who had a solid Resume with years of experience and glowing written recommendations. Just to obtain comfort with Jack’s recruitment, they called Jack’s last employer who had been given as a Referee, who casually responded “He’s a great guy, but... let’s just say his ‘delivery schedule’ was more like a ‘suggestion.’ One time, he drove a truck all the way to the wrong city and then took a nap in the parking lot, claiming it was a ‘strategic rest break.’ His GPS? More of a ‘guideline’ than a tool.” The Transport Operator quickly realised that while Jack might be a smooth talker, he wasn’t quite as smooth and reliable on the road.

1.  Candidates are not always who they claim to be

Some applicants stretch the truth to give themselves an edge, such as claiming at an interview they led a project involving 50 people.  By reference checking the individual with an existing or prior employer, you may find out their Referee states they led a project involving 5 people - not 50.

When you call a Referee, you’re essentially looking through a magnifying glass and asking “What’s the real story here?” It is possible their ex-boss might give them glowing feedback like “Got on well with colleagues, loves teamwork” but if they accidentally mention how they “struggled with being on time” you’ve just saved yourself from hiring a human-sized pothole.

2.  They may be a Superhero in disguise

Reference checking isn’t just about uncovering bad traits or performance – rather, it’s about getting the full picture. Imagine this - you short-list a person who’s ‘good enough’ on paper, but then the Referees state, “They’ve saved the company from financial ruin twice and single-handedly reorganised the entire department.” You then know you have a gem.

In New Zealand, we pride ourselves on a solid work ethic and innovation. Reference checking can reveal those candidates who down-play their skills, experience and attributes at an interview (it’s a Kiwi thing), when the candidate is actually an undiscovered treasure of skill, and one worth investing in.

3.  Getting the truth without the drama

Interviews can be like bad first dates. People are on their best behaviour, wearing their most ‘hireable’ face. But reference checks typically reveal the truth. You’re speaking with someone who doesn’t have a vested interest in impressing you, so they’re much more likely to give you the intel on a candidate’s real work habits.

How to Nail Your Reference Check

The following are some hot tips when approaching Reference Checks:

• Ask the right questions: Don’t just ask about the candidate’s strengths - ask about weaknesses, reliability, challenges, and how they handled difficult situations.
• Trust, but verify: If something sounds too good to be true, it probably is. Dig deeper.
• Be discreet: Always ask a candidate for permission to contact their Referees (two are recommended) and be respectful of their time.
• Ask for another Referee: If a Referee appears to be giving a quick, overly positive review just to end the conversation, or if you suspect the candidate has provided a Referee who may be a colleague or friend and could lack objectivity, ask for an additional Referee. Ideally, this should be a direct-line manager who has worked closely with the candidate and can provide more objective feedback.
• Slam dunk: If a full reference check is not able to be carried out, or if a confidential settlement between the candidate and their former employer prevents the Referee from providing comments, always ask this key question: “Would you rehire this person”? That tells you everything you need to know.

Reference checking (much like pre-employment drug testing) is a simple, yet effective tool to help employers avoid recruitment mistakes. It is the one opportunity for employers to learn a lot more about a favoured candidate than a Resume full of impressive words. It’s the behind-the-scenes sleuthing that can save you from a hire filled with regret.

If you don’t reference check before you recruit, your new employee might just be the equivalent of buying a dodgy used car with a few too many miles and a questionable smell!

If you would like assistance in the recruitment process, or advice on employment relations/disciplinary action arising from one, call the SBS Team - Freephone 0508 424 723.