It’s the step that 90% of all entrepreneurs and business managers fail to complete during their hiring process: the reference check. If you’re sitting there reading this and are one of those managers that never conducts reference checks, I want you slap yourself across the face, promise yourself “never again will I fail to conduct reference checks,” and then continue reading.

As much as we’d like to believe everything that candidates tell us, it’s the reference check that tells us whether or not the results that they said they achieved were actually ever achieved. If you rely solely on taking the candidate’s word for it, you’re guaranteed to make hires that result in missed expectations. Until you ask the candidate’s former supervisors a few critical questions, you can’t be sure that you’re know what you’re getting.

Here are a few simple guidelines to follow when conducting a reference check:

1. Reference checks should be conducted by the hiring manager. That’s you. This is your opportunity to talk to a fellow hiring manager who has direct experience working with the person whom you’re planning to hire. You’re going to get extremely relevant information, and a keen sense as to whether or not the candidate in question performed as advertised. When you pawn off reference checks onto your HR manager or let a 3rd party do the work, you’re robbing yourself of what is arguably the most accurate predictor of this candidate’s success in your role.

2. Reference checks should be performed after the final interview. It’s the last step in the process for a reason. Don’t waste your time conducting reference checks of candidates who haven’t yet made the final cut. If you have two candidates of equal merit after your final interviews, it’s the reference checks that will tell you whom to hire.

3. Co-workers aren’t real references. Candidates will often provide names of people who were really co-workers, or who were managers that didn’t directly supervise the candidate. I’ll talk to them, but I want to speak with each candidate’s direct supervisor for every job that they’ve had over at least the last ten years. What you’ll find is that great candidates keep in touch with their managers and have no problem connecting you with them. Mediocre candidates tend to lose touch with their previous managers, and will reluctantly track them down when asked to do so. Bad candidates will tell you that their manager is no longer with that company and that they last time they checked, the person had moved to Sri Lanka. If a candidate is unwilling to connect you with their former supervisor, for me it’s an automatic disqualification.

4. Ask the candidate to set up the reference call, preferably at night or on the weekend. This approach accomplishes two things. First, it puts the reference at ease because the candidate has asked them to speak with you. When the reference feels like they have the candidate’s permission to talk to you, they’ll give up great information. Second, it frees up the hiring manager from the legal constraints of talking to you during business hours. Many companies have policies that forbid their hiring managers from giving references during business hours, if at all. Asking them to speak to you on off-hours will put most managers at ease. The other thing to think about is this: if a manager tells you they’re unable to give references beyond verification of employment dates, what are they hiding? People are typically more than happy to give glowing references for great people who once worked for them. Poor performers? Not so much. Make sure you tell those people contacted that the call will be held in strict confidence, and honor that promise.

5. Speak to the reference as a trusted colleague. “Hi, Jon, this is Adam Robinson from Ionix, calling in reference to Stephanie Smith? Stephanie told me that this would be a good time to speak with you. Thanks for taking my call. Jon, I’m in charge of sales hiring at Ionix and Stephanie is being considered for a sales position here that’s not unlike the role she had with your company. As a fellow manager who had the opportunity to work with Stephanie, I was hoping that you could give me some insights into her job performance while at Acme Incorporated. I’m hoping that this call will help me better manage her if we decide to add her to the team. I promise that the contents of our conversation will remain between us…I just want to know your thoughts so I make a more informed decision.”

6. TAKE NOTES. Write down everything you hear, good and bad. If you don’t, you’ll forget half the stuff that you’re told within 5 minutes of hanging up the telephone.

After 11 years in the search business, I’ve developed a Reference Check script that works…and it’s now available for you to use at your company.  Click here for the very same form that my executive recruiting staff uses to conduct spot-on reference checks for our diverse client base.  It’s an investment that will pay off the first time you use this invaluable tool! 

Reference checks are a must-do. Discipline yourself to spend the extra hour or two of time making these calls yourself, and watch your hiring results improve overnight!

To complete your reference check training, click here for “How to Conduct a Reference Check, Pt. 2″

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