The Challenge
Getting references on potential employees. This issue is a sensitive one and prospective employers have to be increasingly careful in checking them. Most ex-employees are so afraid of litigation on the part of the ex-employee/candidate, for anything they might say that may be negative, they, may avoid giving any information at all. This in itself can be damaging. Most will agree that we are in a sad state of business conditions when employers cannot get or give truthful, honest information about prospective employees. But, nonetheless, our litigious society has forced us as employers to be more careful and do more intense due diligence to protect ourselves. Since negative opinions of an employee's value must be avoided by ex-employers, potential employers must resort to careful evaluations of facts presented in personal interviews. Most of us approach references as information to round out the interviewing. Our approach in checking references should be to give us a better idea of the person we are hiring. References can sometimes totally eliminate a candidate but most of the time they should be used to give us a clearer picture of what we are trying to hire. Most of us acknowledge there are no perfect candidates. Reference checking should give us a better picture of a candidate ...warts and all. Here are some practical concepts and actions that can be taken to insure quality reference checking.
RECOGNIZE that reference checking can be treacherous, dubious, questionable, etc. Mere recognition of the fact that checking references isn't as effective as it used to be gives one an advantage. Just knowing that the fear of litigation by saying the wrong thing is in the mind and heart of whomever gives a reference, forces a prospective employer to understand better both what he hears and doesn't hear. Being aware of the care that references must be given forces a prospective employer to only rely on them to a limited extent.
Interview Factually
Along with other things, an employer should interview candidates knowing that facts can be verified; feelings, "chemistry, " etc., can't. Here is another reason to give a patterned interview. "Chemistry," compatibility, etc., make the real difference in hiring someone, but documental questions of fact are verifiable. Exact starting and ending dates of employment, starting and ending titles, exact number of people supervised, exact duties and responsibilities, exact figures of budgetary responsibilities, etc., can all possibly be verified by a previous employer. It's hard for people to lie about facts. Either a person's title was controller or it wasn't. A sales person either hit 110% of quota or 50% of quota. These are factual questions that should be asked and verified. The more factual questions and information can be, the better off an interviewer is. Asking a previous employer if a candidate was a good employee can too easily get a non-answer response. Asking a previous employer a question like: "Our candidate states that he was 97% of quota when he left, is this correct?" Illicits a black and white clear cut yes or no. Getting factual information in the interviewing process gives an employer facts to verify.
Credit Reports
This is an excellent way to see if a person has their personal house in order. Most of us would agree that we handle our business affairs no differently than our personal affairs. As one expert put it: "the executive with a messy garage will have a hard time straightening up the corporation". Serious credit problems will usually indicate serious personal problems. Serious personal problems will usually indicate serious professional problems. Direct personal references have to be careful in what they say. Credit reports, however, are factual. You must however, GET PERMISSION FROM A CANDIDATE to check his credit. There are forms available that a candidate must sign giving you permission for his credit to be checked. BE CAREFUL! There are some states that limit how a credit check can be used and who can perform one. Get legal advise before instigating such a practice! Membership in a credit bureau will facilitate such credit reports. Credit reports will usually tell you how a prospective employee will handle the company's money, ...no differently than his own. Having said all this, however, we encourage employers to use the results of a credit report with prudence. The level of job, function, etc., will dictate how much of an impact a credit report should have on the decision to hire someone. Extenuating circumstances like long term unemployment or long term illness of a family member will sometimes negatively impact a person's credit when normally they would have no difficulties.
Driving Record & Arrest Record
There are service bureaus that provide during, arrest and credit records on any individual. With a candidates permission this information ought to be a must. What you do with the information you get is up to you. Remember that no one "runs" their business life any differently than they "run" their business life.
