Hiring the right person is one of the most important decisions a business can make and while résumés and interviews provide useful insight, they don’t always tell the full story. 

That’s where reference checking becomes invaluable as an extra layer of assurance in the recruitment process.

Why reference checks matter

Résumés are written to present candidates in the best possible light and interviews can be influenced by first impressions, rapport or nerves. 

Reference checking provides an external perspective from someone who has actually worked with the candidate on a daily basis.

Effective reference checks can help you:
•    confirm claims—did the candidate really perform the duties, hold the responsibilities and achieve the outcomes they described?
•    understand work style—how do they respond to feedback, pressure and changing priorities?
•    assess behaviour and conduct—do they follow policies, respect boundaries and contribute positively to team culture?
•    identify strengths—referees often highlight achievements or attributes that didn’t fully emerge during the interview.

Managing risk and protecting your business

Hiring the wrong person can be costly. Beyond the time and money spent on recruitment and induction, a poor hire can disrupt team performance and morale, damage customer or client relationships or lead to performance management conflicts, safety incidents or legal claims.

Reference checking helps manage this risk by allowing you to spot potential red flags early—such as repeated concerns
about reliability, behaviour or failure to follow instructions. 

While one negative comment should not automatically disqualify a candidate, consistent themes across referees should prompt careful consideration.

For higher-risk roles, reference checks often sit alongside other pre-employment checks (eg, police checks, working with children
checks, professional registration). 

Together, these steps demonstrate that reasonable care has been taken in the hiring decision.

Legal and privacy considerations

Reference checking must be carried out lawfully and respectfully. 

Employers should always:
•    obtain the candidate’s consent before contacting referees
•    ask job-related questions focused on performance, conduct and suitability
•    avoid questions about protected attributes such as age, disability, sex, race, religion, pregnancy or family responsibilities.

It’s also wise to keep brief notes of your conversations with referees, including who you spoke to and their role, the date of the conversation and key points or examples shared. 

These records can help demonstrate that your hiring process was fair, consistent and evidence-based if a decision is later challenged.

How to conduct effective reference checks

A quick call asking whether someone was ‘good’ or ‘bad’ rarely provides enough useful information. 

To get real value from reference checks, it helps to prepare a short set of structured questions linked to the role’s requirements.

You might ask referees about:
•    the candidate’s main responsibilities in their role
•    how they performed overall
•    how quickly they learned new tasks
•    how they responded to feedback or direction
•    how they worked with colleagues, clients or customers
•    any concerns about reliability, attendance or conduct.

Open-ended questions usually produce better insight. 

For example, ‘Can you describe a time when they dealt with a difficult situation?’ or ‘How did they manage competing priorities or tight deadlines?’

Where possible, ask for specific examples rather than general impressions.

It’s also preferable to speak with someone who directly supervised the candidate rather than relying solely on personal or character references.

Recognising the limitations

Reference checks are a helpful tool but they are not perfect. Referees may be reluctant to provide negative feedback or may have only seen the candidate in a particular context. 

For this reason, reference checking should be viewed as one part of a broader recruitment process, alongside interviews, skills assessments and, where appropriate, probation.

If a referee raises concerns, consider them carefully but also weigh them against all the other information you have. 

One isolated comment may not justify rejecting a strong candidate but consistent concerns across multiple referees should not be ignored.

Conclusion

Reference checking is a key part of best practice recruitment. 

By confirming information, exploring past performance and identifying potential risks, it helps employers make better hiring decisions and reduce costly mis-hires. 

When done thoughtfully—within legal and privacy boundaries and using structured, role-relevant questions—it supports a fair, defensible process and promotes better matches between people and roles, laying the groundwork for a successful working relationship.

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>> Originally published in InMotion magazine under the title 'Reference checks'.