How to Conduct a Great Employee Reference Check

Hiring a good fit for a job role requires more than assessing resumes and conducting interviews. You must ensure you conduct a reference check before extending an offer to any candidate because it helps you understand how they perform at work, beyond what their CV or interview suggests.

A thorough reference check is an essential part of the hiring process. It allows employers to verify an applicant’s employment past, assess their past performance, and identify potential red flags that may have been overlooked during interviews.

To effectively conduct a reference check, begin by obtaining the candidate’s written permission to contact their references. Then, prepare a list of job-related questions and contact the references, either by phone or email, to schedule a convenient time.

During the check, listen actively to their responses, take notes, and ask follow-up questions based on the information received.

Why Reference Check Are Important

As a business owner, conducting reference checks is an important aspect of making informed hiring decisions. They help you:

• Confirm that the candidate’s work experience and job titles are accurate.
• Understand how applicants performed in previous roles and whether they are likely to thrive in your work environment.
• Learn about the candidate’s strengths as well as any areas where they may need support or development.
• Detect any history of misconduct, criminal behavior related to previous employment, or patterns of dishonesty that might not be obvious from interviews alone.

Steps to Conduct an Employee Reference Check

1. Get Written Consent

Always obtain the candidate’s written permission before contacting their references. This ensures compliance with privacy laws and shows professionalism.

2. Ask Relevant Questions

Generic questions yield generic answers. Ensure your questions reflect the job role, your company culture, and the skills you are looking for. Examples include:

• How would you describe the candidate’s performance in their role?
• What are his/her top strengths?
• What areas did he/she need support or improvement in?
• How did he/she handle feedback and conflict?
• How did he/she engage with team members, stakeholders, or clients?
• If you could give he/she future manager one piece of advice, what would it be?
• Would you rehire him/her? Why or why not?
• Is there anything else you believe I should know before making a decision?

3. Speak With the Right People

Prioritize references who directly supervised or closely collaborated with the candidate such as line managers, project leads or HR representatives (especially when exits involved sensitive issues).

Always confirm how the reference knows the candidate and the duration of their working relationship. If a candidate only provides peers or friends, request alternative references who can speak to their work performance and accountability.

4. Build Trust With the Referee

You will get a meaningful conversation when the referee feels comfortable.

Start with a friendly, professional tone. For example: “Thank you for your time. I’m reaching out to a few people who worked closely with [Candidate] to better understand their working style and suitability for the role. Your insights will remain confidential and used solely for the hiring process.”

This approach encourages openness and builds trust.

5. Listen and Take Notes

Pay close attention to both what is said and how it’s said. Take notes and be prepared to ask follow-up questions if something needs clarification.

If a referee seems overly diplomatic or avoids specifics, ask follow-up questions:

• “Can you share an example to clarify that?”
• “Could you walk me through how that situation unfolded?”

Listen closely for tone, energy, and consistency. Compare their answers to what the candidate shared during the interview.

6. Cross-Check With Candidate Information

Reference checks should confirm, not replace, your assessment of the candidate. Focus solely on job performance, skills, and workplace behavior.

Use them to verify:

• Past roles and achievements
• Strengths and growth areas
• Potential red flags or concerns

If discrepancies arise, address them directly with the candidate or adjust your evaluation accordingly.

7. Document Findings Clearly

Use a consistent format to record each reference call. This creates a reliable reference trail for future reviews and ensures transparency in your decision-making process. A simple reference check form can include:

• Strengths and skills highlighted
• Areas for improvement
• Examples shared
• Overall recommendation or concern

Benefits of Employee Reference Checks

1. Hire with more Confidence

Reference checks give you a clearer picture of how someone works. Instead of relying only on a polished CV or a great interview, you hear directly from people who have worked with them. This helps you make informed choices. 

2. Minimize the Risk of a Bad Hire

Bringing the wrong person on board wastes time, drains resources, and can create serious problems especially if they have a history of misconduct. By speaking with former employers, you reduce this risk and protect your company from future issues. 

3. Understand How to Manage the Candidate

When you ask the right questions, referees can tell you what type of support the person needs, how they respond to feedback, and what motivates them. This helps you onboard and manage them more effectively if you choose to hire them.

4.  Confirm the Candidate’s Story

Reference checks help you verify the candidate’s past roles, achievements, and responsibilities. This step ensures their claims are accurate and builds trust in your hiring decision. 

5. Protect Your Team and Work Environment

Some referees may flag serious concerns, such as past behavior issues or integrity problems. These warnings help you avoid bringing in someone who could harm your team or disrupt your workplace.

How Many References Should You Call 

Aim to speak with at least 2–3 professional references for each candidate. Some of the reasons include:

1. Multiple perspectives provide a wider picture
When you talk to more than one person, you hear different experiences. One may highlight strengths, while another points out areas for improvement. Talking to multiple people helps you build a more balanced and complete understanding of the candidate.

2. Roles and relationships vary
A past manager, team lead, or co-worker can each describe how the person worked in different situations. This helps you understand how the candidate performs with different types of people. 

3. You reduce the risk of bias
A single reference might have personal biases. By speaking to a few people, you balance those views and make a fairer decision.

If the candidate does not have many work references due to career stage or job type, ask for others who can speak about their work like a school mentor, internship supervisor, or someone they have done freelance work for. Just make sure the person knows their work well.

What to Avoid During Reference Checks

There are boundaries that should not be breached because you are conducting an employee reference check. Below are some things you should avoid when conducting this process:

1. Asking personal or discriminatory questions: Ensure you stick to only job-related topics.

2. Making the referee feel pressured: Keep the tone open and respectful to make room for more honest response. 

3. Skipping follow-up questions: Don’t assume anything you are unsure of from what a referee said. Ensure you clarify where needed.

4. Relying on one reference: Cross-check with others for balance.