Fewer than 10% of managers conduct their own reference checks. When you leave reference checking in the hands of someone else, you’re really rolling the dice with your new hire. Worst of all is the hiring manager who neither conducts references themselves, nor gets a third party to conduct references for them.
Would you ever consider forking over $400,000 for a house based entirely on what the selling agent told you? (”Of COURSE the house is mold-free!“) Heck no! That’s what home inspections are for. Yet, almost every entrepreneur I work with is more than willing to fork over fifty, eighty, or a hundred-thousand bucks (or more) for someone that they’re hiring based entirely on the belief that this person hasn’t embellished or inflated a single thing about their stated accomplishments or experience.
Faith in people is a good thing, but it’s “trust but verify” time when you’re hiring new employees. Here are three tops tips for conducting reference checks that tell you what you need to know about your candidate:
Conduct reference checks yourself. Seriously, I can’t believe I had to tell you again.
Approach the reference call like you’re about to make a $500,000 buying decision. I find that most managers who conduct reference checks blow through the call in about 5 minutes. “What can you tell me about Jim? Any performance issues? Well, great! Talk to you later.” Let’s say you’re hiring a $50,000 a year resource for your growing company. The general consensus amongst the HR community is that hiring the wrong person costs you 10x that person’s base salary after you factor in salary, benefits, lost customer opportunities and other opportunity costs. That means that you’re making a $500,000 buying decision when hiring a seemingly “inexpensive” resource. Act like it’s a half-million dollar decision. It is.
Clue into the nuances of the reference’s responses. The answers to the test are buried in the subtleties of voice inflection and tonal qualities of the reference’s answers. Does it sound like the reference is holding back on something negative? Are you getting stonewalled on your questions? Just scratching the surface? Getting nothing more than one-word answers? If you think any of these scenarios are the case, simply say, “Tell me more about that.” Push that reference to give you the second, third, and even fourth layer of detail. That’s where the reality of your candidate’s performance history lives.
Remember the most important question in the world: “If given the opportunity to hire this person again for a similar job, would you enthusiastically rehire them?” Any answer other than some version of, “Absolutely!” is the universe telling you that hiring this person will lead to issues. If it sounds like this person would be even the least bit hesitant to rehire your candidate, take heed. If they qualify their answer, take heed. It’s for a reason. Seek clarification, but don’t try to convince yourself that you should hire someone whom you know is getting a lukewarm rehire reception from a former manager.
The reference check is the most important part of the interview process, because it’s the first time that you have someone other than your candidate talking about that candidate’s performance. Don’t rush through this final screening step!
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!
