8 min read

Relevance of a Reference Check in Recruitment

In recruitment, being careful about the candidates you bring into a company is crucial.

Imagine hiring an employee without doing any reference checks and later finding out some false information about his or her identity. There are different possibilities a candidate can do to land a job. They can either ask someone who is just a friend or colleague to pretend to be a manager or supervisor. These days, there are even paid options on the web to get someone to do a reference check for you–without knowing you personally!

Let’s look into the challenges you may encounter and the benefits you may have in regard to reference checks.

Challenges you may encounter when you skip the reference check

Costs and losses

If a recruiter decides to hire a candidate without conducting a reference check, it may initially seem like you have saved time and money.

When you uncover red flags after the employee has started working, it can lead to multiple costs and losses.

Possible Lawsuits

To a certain extent, companies are responsible for the employees they bring in. When an employee misbehaves at work and causes harm to others, a lawsuit may be filed.

As a recruitment agency, even if it is not intended to deceive your client, presenting a candidate without a reference check increases the likelihood of being accused of negligent hiring.

Affected Business Reputation

What makes a business successful are the people working together to run it. So if the recruitment process is not deliberate enough in ensuring you have the right people, things could easily get out of hand.

An individual who commits unacceptable actions can cause a negative impact to a company’s reputation. This could possibly lead to scaring away clients, partners, or investors who don’t want to risk being involved with your company.

Additional processes to terminate employee

Skipping a reference check could lead to additional processes when an employee needs to leave the company. Whether an employee has poor work performance or policy violations, you had the chance to uncover this information if you were successful in conducting a reference check in the first place. Having to terminate an employee means more documentation and allocating extra time and resources to get it done.

Benefits of incorporating a reference check in your recruitment process

Gain an outside perspective of the person you are hiring

The information you collect from a candidate could be easily taken at face value. When you do a reference check, you gain additional layers of understanding the person you are hiring. Not only does it allow you to verify information provided by the candidate, it also allows you to gain insight on the candidate’s character and personality.

Due Diligence in your recruitment process

Considering that reference checks could either break or make a potential candidate, your company will benefit from it beyond the hiring process. You have done your part in ensuring that you have made an informed hiring decision. This serves as your solid defense and decreases your liability when legal issues arise.

Possibility of retaining staff long-term

If you get a good reference check for a candidate, you have a good shot of seeing how you could retain the employee who may find himself suitable to stay longer with your company. If the company and the employee is a great match, you get to build a strong team who thrives together for long-term success.

Chance to offer recruitment services to referees

It is likely that you have built some rapport with the referee after you conduct a reference check, this opens an opportunity for you to offer your recruitment services if they have any roles to fill. If the reference check was done through an online platform, adding options to request for staff increases your chance to help them look for the people they need.

In recruitment, being careful about the candidates you bring into a company is crucial. It will be more beneficial to know more about the person you’re hiring, as this will save you from further damage you may or may not be able to control.

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