Reference Checks: How to Conduct Them Properly

You’ve found a great candidate. Their resume looks perfect, they aced the interview, and you’re ready to make an offer. But wait - have you checked their references?

The problem: Most recruiters skip reference checks or do them poorly. They ask generic questions, get generic answers, and miss red flags.

The solution: Do reference checks right. Ask the right questions, verify claims, and get honest feedback. You’ll catch problems before they become expensive mistakes.

“Reference checks are your last chance to verify what a candidate told you. Don’t skip them - they’re cheap insurance against bad hires.” - Dr. John Sullivan, recruiting thought leader

Why Reference Checks Matter

The reality: Candidates can exaggerate, misrepresent, or even lie. Reference checks are your chance to verify what they told you.

The numbers:

85% of employers discover lies or exaggerations in resumes
Reference checks catch 30% of bad hires before they start
Good reference checks reduce turnover by 25%
They take 15-30 minutes and can save you thousands

Real example: A candidate says they “led a team of 10” and “increased sales by 50%.” Their reference says: “They were on a team of 10, but they weren’t the leader. Sales increased, but it was a team effort, not just them.” You just caught an exaggeration that could have led to a bad hire.

What Reference Checks Are For

What it sounds like: Calling former employers to verify employment.

What it actually means: Verifying candidate claims, understanding their work style, and identifying potential red flags before making an offer.

What Reference Checks Can Tell You

1. Verify employment and dates

Did they actually work there?
Were the dates accurate?
What was their actual title?

2. Confirm job responsibilities

Did they really do what they said?
Were their achievements accurate?
What was their actual scope?

3. Understand work style

How do they work with others?
What’s their communication style?
How do they handle pressure?

4. Identify strengths and weaknesses

What are they really good at?
Where do they struggle?
What feedback did they receive?

5. Check for red flags

Were there any performance issues?
Did they leave on good terms?
Any concerns about rehiring them?

Real example: A candidate says they “managed a budget of $2 million.” Their reference says: “They were involved in budget discussions, but the CFO actually managed it.” You learn they exaggerated their responsibility.

When to Do Reference Checks

Do reference checks:

Before making an offer - Your last chance to verify
For all final candidates - Don’t skip them
After interviews - When you’re serious about someone
For senior roles - More important for high-stakes hires

Don’t do reference checks:

Too early - Before you’re serious about a candidate
For every candidate - Only final candidates
Without permission - Always get candidate consent first
Skipping them - They’re important, don’t skip

Real example: You’re hiring a VP of Sales. You do reference checks with 3 former managers. One says: “They’re great at building relationships, but they struggle with data analysis.” That’s valuable information for a data-driven sales role.

How to Get Good References

Ask candidates for:

Former managers - Best source of feedback
Colleagues - Can speak to collaboration
Direct reports - For management roles
Clients or partners - For client-facing roles

What to ask for:

Name, title, company
Relationship to candidate
Best way to reach them
Preferred time to call

Red flags:

Only personal references - Need professional references
All references from same company - Get diverse perspectives
Reluctant to provide references - Might be hiding something
References that don’t answer - Might be fake

Real example: A candidate gives you 3 references - all from the same company, all personal friends, and one doesn’t answer. That’s suspicious. Ask for professional references from different companies.

How to Conduct Reference Checks

Before the Call

1. Prepare your questions:

Employment verification questions
Performance questions
Work style questions
Red flag questions

2. Review the candidate’s claims:

What did they say in the interview?
What’s on their resume?
What do you need to verify?

3. Set expectations:

Tell references it will take 15-20 minutes
Ask if now is a good time
Explain you’re checking references for a candidate

4. Have the candidate’s resume ready:

So you can reference specific claims
To verify dates and titles
To ask about specific experiences

During the Call

1. Start with rapport:

“Thanks for taking the time”
“I know you’re busy”
“This should only take 15-20 minutes”

2. Verify basic information:

Employment dates
Job title
Responsibilities
Reason for leaving

3. Ask about performance:

Strengths and weaknesses
Achievements and contributions
Areas for improvement
Overall performance rating

4. Ask about work style:

How they work with others
Communication style
How they handle pressure
Leadership style (if applicable)

5. Check for red flags:

Performance issues
Attendance problems
Conflicts with team
Would you rehire them?

6. End professionally:

“Is there anything else I should know?”
“Would you recommend them?”
“Thanks for your time”

Good Reference Check Questions

Employment verification:

“Can you confirm [candidate] worked at [company] from [date] to [date]?”
“What was their actual job title?”
“What were their main responsibilities?”

Performance questions:

“How would you rate their overall performance?”
“What were their biggest strengths?”
“What areas did they need to improve?”

Work style questions:

“How did they work with others?”
“How did they handle pressure or tight deadlines?”
“What was their communication style like?”

Red flag questions:

“Were there any performance issues?”
“Would you rehire them?”
“Is there anything I should know before hiring them?”

Real example: You ask: “How would you rate their overall performance?” They say: “Average.” You ask: “What does that mean?” They say: “They did their job, but nothing exceptional.” That’s valuable feedback - they’re competent but not a star performer.

Common Reference Check Mistakes

Mistake 1: Asking yes/no questions

Problem: “Were they a good employee?” Gets a yes, no detail
Solution: Ask open-ended questions: “Tell me about their performance”

Mistake 2: Not verifying claims

Problem: Candidate says they “led a team” but you don’t verify
Solution: Ask specific questions about their claims

Mistake 3: Only talking to one reference

Problem: One perspective might be biased
Solution: Talk to 2-3 references for a complete picture

Mistake 4: Not asking about weaknesses

Problem: Only hearing positives, missing concerns
Solution: Ask: “What areas did they need to improve?”

Mistake 5: Rushing through it

Problem: 5-minute call doesn’t get good information
Solution: Take 15-20 minutes, ask follow-up questions

Mistake 6: Not taking notes

Problem: Forget important details
Solution: Take detailed notes during the call

Real example: You ask: “Were they a good employee?” They say yes. You move on. You missed the chance to learn about their work style, strengths, weaknesses, and any concerns.

Handling Difficult Reference Checks

When references won’t talk:

Problem: Company policy prevents detailed feedback
Solution: Ask what you can verify (dates, title) and ask if they’d recommend them

When references are negative:

Problem: Reference says something concerning
Solution: Ask for specifics, get multiple perspectives, consider the source

When references are too positive:

Problem: Everything is perfect, seems unrealistic
Solution: Ask about areas for improvement, get other references

When you can’t reach references:

Problem: References don’t answer or return calls
Solution: Ask candidate for alternative references, try different times

Real example: A reference says: “I can only confirm employment dates due to company policy.” You ask: “Can you tell me if you’d recommend them?” They say: “I can’t say, but I can confirm they worked here.” That’s limited, but you got what you could.

Legal Considerations

What you CAN ask:

Employment dates and titles
Job responsibilities
Performance and work quality
Whether you’d rehire them

What you CAN’T ask:

Age, race, gender, religion
Medical information
Family status
Anything protected by law

Best practices:

Stick to job-related questions
Ask the same questions to all references
Document everything
Get candidate consent first

Real example: You ask: “How old were they?” That’s illegal. You ask: “How long did they work there?” That’s fine. Stick to job-related questions only.

Resources and Tools

Reference check templates:

Question banks - Pre-written questions by role
Phone scripts - Structured reference check scripts
Evaluation forms - Standardize your assessment

Background check services:

Checkr - Automated background checks
GoodHire - Employment verification
HireRight - Comprehensive background screening

Legal resources:

SHRM Reference Check Guide - Legal compliance
EEOC Guidelines - What you can and can’t ask
State-specific laws - Some states have restrictions

Training resources:

Reference check courses - Learn best practices
Best practices guides - Stay updated
Case studies - See how others do it

Next Steps

For recruiters:

Create question templates - Standardize your process
Train your team - Make sure everyone does them right
Document everything - Keep records of reference checks
Follow up - If references raise concerns, investigate
Iterate and improve - Refine based on what you learn

For hiring managers:

Provide input - Tell recruiters what to ask about
Review results - Look at reference check feedback
Make decisions - Use reference checks in your decision
Give feedback - Help recruiters improve the process

For candidates:

Provide good references - Give professional references
Prepare your references - Let them know someone might call
Be honest - Don’t exaggerate, references will catch it
Follow up - Thank references for their time

Conclusion

Reference checks are your last chance to verify what candidates told you. Do them right, and you’ll catch problems before they become expensive mistakes.

Remember:

Always do reference checks before making an offer
Ask open-ended questions, not yes/no
Verify specific claims from interviews and resumes
Talk to 2-3 references for a complete picture
Take detailed notes and document everything
Follow legal guidelines - only ask job-related questions

Do this right, and you’ll make better hiring decisions. Reference checks are cheap insurance against bad hires.

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