Reference checks are critical for ensuring a candidate has the experience and qualifications they claim to have. They can also give you an insight into how a person will perform once they leave the interview room, which can help you avoid making a costly hiring error. 

With that in mind, diligent reference checks should be a critical part of your recruitment process.

 

The purpose of reference checks

A diligent reference check allows you to do the following:

  • Obtain independent information about your candidates’ previous on-the-job performance, directly related to the key selection criteria of the role they’ve applied for.
  • Identify ‘grey areas’ from the candidate’s CV or from their interview, such as the reasons they may have left a past position.

 

Never hire without checking referrals first

No matter how strong a candidate appears on paper or in person, reference checking should remain a non‑negotiable step in the recruitment process. Candidates may unintentionally overstate achievements, highlight only their strongest experiences, or tailor their application to match the role description.

Research consistently shows that the cost of a poor hiring decision can be significant—often estimated at three to four times an employee’s annual salary when lost productivity, rehiring and training costs are taken into account. Conducting reference checks helps reduce this risk by validating the information provided and confirming a candidate’s suitability for the role.

Consistently applying reference checks also supports fair and transparent recruitment practices, ensuring all shortlisted candidates are assessed using the same process.

 

What information do you need from a reference check?

When conducting a reference check, it’s critical to verify:

  • a candidate’s previous employment history
  • education
  • past positions
  • listed names and mobile numbers are those of legitimate referees.

Asking open-ended, job‑related questions—such as “Would you re‑employ this person?” or “How would you describe their working style?”—can help confirm whether a candidate’s reputation aligns with the claims made during the recruitment process.

 

A critical step in smarter recruitment

Remember that a reference check is more than just confirming a candidate’s background and employment history – it’s also a way of verifying their work ethic is commendable and that they’re the sort of employee who will help your business thrive. 

 

Need some guidance on checking references?

My Business Workplace subscribers can access the Workplace Advice Line for expert guidance. Simply log into your Workplace account and visit the Support page to see your available calls.
 
You can also download ready-to-use templates designed to keep your business compliant, including:

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