Why is reference checking important

For example, if it is a government position, you have to know the individual applying is not a convicted felon, or doesn't have a prior record. If an individual is applying for a mortgage, as a lender, you want to know they make payments on time, have a good credit score, and are a reliable borrower. The importance of reference checks is that the references you contact, about different scenarios, can give you a great indication about the person you are interviewing or considering for a loan, and the references can help you determine if they are the best candidate or not.

Don't forego checking references Many employers or lenders forgo checking references due to the time if they need a new employee right away, the check slows this down and the cost. But, in the long run, a reference checking service will save you both time and money.

It will help you know you have hired the right individual, meaning you won't have to post another job opening in the near future, and spend more money in training and the hiring process all over again. Done correctly, they offer hirers an opportunity to critically evaluate the skills, experience and characteristics of a potential employee.

You can unsubscribe from emails at any time. Saved advice can only be viewed on the same device you saved it on and will be lost if you clear your browser history. Whether it's job ad writing, attracting candidates or interviewing, Hiring Advice is your new destination for expert advice, tools and resources to guide you through your recruitment journey. Skip to content Account is currently on credit hold. This is your chance to learn about their work style from another experienced manager who evaluated their strengths and weaknesses on the job on a day-to-day basis.

Reference checks are essential for risk management — the information you gain can save you from disastrous hires, or help you manage the successful candidate in their new position with your company. Keep the reference check job-related. Bear in mind that employment laws, such as anti-discrimination provisions, applies to reference checks and interviews alike. Some companies prefer that human resources departments deal with references, though a supervisor might have more pertinent information.

If both the supervisor and HR member are reluctant to help, ask if they could provide a confidential personal reference, and a phone number where they could be reached after hours. Call ahead and make an appointment for the conversation. This gives the supervisor a chance to gather their thoughts about the former employee. Strategic questions will help you determine if the candidate will fit into your organization.