_{By Susan Kandalaft}


Hello savvy hiring managers!

In my 35 years in recruiting, I’ve seen plenty of trends come and go. Yet, despite the critics, one aspect of hiring that has stood the test of time is reference checks. Here are 6 lessons I have learned about references. There’s also numerous reasons why I still place weight on them and why you should, too.

Lesson 1: The True Value of References

Reference checks can uncover a candidate’s true essence beyond the resume. Skeptics say references are irrelevant. They say they are as baseless as an unhinged rant on a Google review or as meaningless as five stars awarded by friends of the owner. But there’s an art to extracting gold from reference conversations that involve humanity, nuance, and qualifying follow-up questions.

When done correctly—you’ll objectively find out how a candidate performed in a real-life setting. It’s not just about confirming dates of employment; it’s about proving your hunches from your interview with observations from others who have known them for much longer than you and in a daily workplace setting.

Lesson 2: About Legal Fears

Companies wary about handing out references are usually worried about the legal backlash. This stance is about their priority of shielding the company from risk. They see zero incentive to help their former employees’ careers after they’ve left. The policy seems pragmatic, but it poses a challenge for recruiters.

Unfortunately, the practice helps less-than-stellar employees go unchecked by the eyewitnesses of their past so they are free to move on. On paper, they appear equal to exceptional employees.

Ironically, the no-references policy hurts the most deserving candidates. Validation for praiseworthy candidates comes slowly and hinders their chance at new opportunities.

Negative behaviour is costly in business. Our guarantees are in place to protect our clients, so references are a must.

The good news is there’s a workaround. When a corporate entity does not officially provide a reference by its policy, we can usually find a supervisor who retired or left the company or who agrees to speak if they’re unnamed and off the record.

When supervisors genuinely appreciate a working relationship with their former employees, they want to support them despite the official corporate stance against references. They often help out. Superior employees also have a knack for forging close trust with their former bosses, who continue to feel invested in their future success. Off-the-record references add incredibly validating insights for a potential new employer. When confidentiality is promised, the exchanges can become more candid with detailed facts about why a candidate is rock solid.

Lesson 3: Credible References Only

It’s a red flag for me when the references provided don’t align with the candidate’s work history or are irrelevant—like citing someone they babysat for years ago or using personal references like neighbours. This can signal that they haven’t maintained professional relationships, or their work history might not stand up to scrutiny.

We seek at least two of a candidate’s previous supervisors. If the role is supervisory, we like to speak with a subordinate to gain a glimpse into their leadership style and capabilities.

Losing touch is natural, but it raises questions about whether someone has been in the workforce for over a decade and struggles to keep relevant references. How candidates handle a discussion about references is also telling. Defensiveness or excuses can be a sign of deeper issues.

Our most on-the-ball candidates keep an updated list of references, touch base with them, or give them a heads-up that they might receive a call. This level of preparedness shows they are proactive and considerate—qualities we value.

Lesson 4: Outsourced Reference Checks … Just Don’t

In my decades of recruiting, I have never found that outsourcing reference checks to a third party is worth the cost or so-called convenience. You’ll often get robotic results. Even though human interviewers place calls and record answers, they are disconnected from the context of the search or the purpose of the questions and answers. They grab facts but fail to capture emotion. They stick to the surface without follow-up questions. They’re mandated to tick off boxes and little else. This just doesn’t cut it because it overlooks subtleties that matter, impacting the quality of information and your hiring decisions.

Lesson 5: Red Flags in Reference Checks

So, what do you do when you encounter a red flag in a reference check? It doesn’t always mean a candidate is ruled out.

Trouble spots cause me to find context. Firstly, I weigh any concern that pops up against what the job demands. For example, if a reference mentions an overly serious demeanour, but the role requires zero public interactions and intense analytical work, finding a social butterfly is not a priority. Secondly, what might seem like a red flag in work ethic – such as a break in employment or a sudden departure can be explained with context and an empathetic conversation. When any issue is mentioned, I always ask other references about it directly, not leading with a prior mention. The other reference may say the opposite is true, or they may confirm it. Getting the full picture helps me gauge whether it’s an anomaly or a pattern.

References aren’t a detective mission to find negativity. It’s about making a fair assessment and informed decisions.

Lesson 6: Reference Checks are Icing on the Cake

Reference checks are an extra step and a formality in the hiring process. We conduct them when our clients are 95% sure they want to make an offer. Why waste time if we’re not serious? This timing allows us to use our resources wisely. We focus only on candidates who are truly a good fit.

At this point, near the end of a search, we are usually very excited about the match we’ve made for a client. The good vibes surrounding top candidates are contagious, and reference calls can be enjoyable conversations. Past employers are some of the most enthusiastic cheerleaders, and they are genuinely interested in their favourite teammates from the past.

The specifics of reference conversations are always confidential. When a reference knows that feedback is safe with me, they open up. When protecting confidentiality, I get the real scoop on a candidate and maintain an industry reputation for trustworthiness and fairness.

Conclusion

References add transparency and provide a snapshot of a candidate’s past performance and potential future with your company. If you’re a business owner or hiring manager, give references the attention they deserve – not just as a formality, but to achieve thoughtful, informed hiring decisions.

Contact me if you need guidance navigating reference checks or other recruitment challenges.

Your empathetic and intuitive recruiter,
Susan Kandalaft