Reference checks are a crucial part of the hiring process. A strong reference checking process ensures due diligence, identifies red flags and gathers data that managers can use during hiring and onboarding.
By getting reference checking right, recruiters can add incredible value to the hiring process. Good hiring decisions lead to a better work culture, increased productivity and saved costs.
When conducted correctly, reference checks provide recruiters and hiring managers with insightful information about candidates, helping them make more informed hiring decisions.
A reference check is part of the verification stage of the hiring process where organisations aim to verify the information a candidate has shared during interviews. In general, reference questionnaires are an opportunity to learn more about a candidate’s personality, strengths and weaknesses from the perspective of previous employers, colleagues and peers.
At Xref, we refer to them as Reference Surveys because they assist organisations with opinion-based feedback provided by previous managers who share valuable insights on candidates.
Reference surveys are different from screening and verification checks, as checks expire and don’t provide in-depth feedback from people who know the candidate.
A CV or Employment Check, for example, can validate a person’s job title and any qualifications they may have based on work experience, but a background check won’t offer insights into how well a person completed their tasks or what areas they may need to improve upon.
Reference checking is much more than a box-checking exercise. In the long run, an organisation can save time by learning more about a candidate before that candidate joins the company. This reduces the possibility of bad hires and could increase retention rates.
Employers use reference checks to gain deeper insights into candidates and to understand how previous managers view their skill sets. Information about work history, strengths and weaknesses can also be used to create tailored onboarding programs for new team members.
The data you can expect to receive from a good reference check includes opinion-based information such as:
For example, a reference check can help you understand how a previous manager rates a candidate's attention to detail, initiative, and teamwork skills. Hiring managers can then use this information to make smart decisions before making a job offer.
Reference checks are conducted by asking a candidate to nominate referees and then reaching out to them to ask about a candidate's prior work performance.
Online reference checking can be completed at any time of day, allowing candidates and referees to complete their part of the process outside of business hours. The ability to complete a reference check at any time is particularly useful for teams who hire abroad, as time zones are no longer a barrier.
Studies show digital reference checks reduce bias and improve validity by offering a consistent and structured process. Asking referees the same reference check questions about a candidate reduces biases towards specific candidates. Consistency leads to standardised data collection and an opportunity for recruiters to identify trends.
With Xref’s automated reference checks, recruiters send an online request to candidates asking for referee information. Candidates input referee details and the platform takes care of the rest.
Automated reference checks avoid the time-consuming process of manually chasing referees. Typically an Xref reference check is returned completed within 18-24 hours.
Referees are automatically contacted via email or SMS and asked to participate in a feedback questionnaire. Both closed and open-ended questions are asked so recruiters have plenty of data to work with.
In addition, Xref offers anti-fraud features for added security. Identities and IP addresses are validated so employers are more certain about who they are dealing with. Xref takes things an extra step with an anti-fraud algorithm that alerts recruiters of suspicious activity.
Once completed, Talent Acquisition teams will receive a score of candidate competencies, an analysis of recruiter sentiment and benchmark data to measure candidate scores.
Xref is a global platform created by Human Resources specialists. We prioritise security and compliance and are GDPR-compliant and ISO 27001 certified. Our customers say our platform is easy to implement and use and helps improve their recruiting function.
When conducted correctly, reference checking is an incredibly important part of the hiring process.
Xref’s Trust Marketplace offers a range of background checks that organisations can complete at any stage of the talent journey. Each background check can uncover specific information about a person.
A reference check can help employers meet compliance and due diligence standards. It can also offer detailed insights about a person to assist organisations in making the best hiring decisions.
A high-performing reference checking process will save recruiters time rather than add to their workload.
Learn more about how Xref can help your organisation conduct reference checks.
