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Do Candidate Reference Checks Really Matter

Do Candidate Reference Checks Really Matter

Given the fact that a considerable number of candidates lie on their resume about the references, candidate reference and background checks is emerging as a huge concern in companies. According to a survey by CareerBuilder, 70% of employers now use social media to screen their candidates. This candidate background research is not just limited to the social media, 69% of recruiters use online search engines to research candidates as well.

What do reference checks ascertain?

Reference checks are not just about finding out whether a person used to work in a particular organization or what kind of job responsibilities they handled. These are definitely important points to consider but it is also crucial to find out how well they accomplished their job responsibilities, their personality, how well they fit into the organization and finally, why they decided to move on. These factors are imperative in selecting the right candidate for your organization, particularly if you’re a small or growing business.

Reference checks are highly significant for employers

Another survey found that after speaking to the professional references, managers remove 21% of job candidates from consideration. Almost 58% of recruiters always contact the references and despite following a vigilant process of background checks, most employers have found that about 20-30% of candidates fake the references in their resumes. 59% HR managers reported that they develop a negative opinion towards a candidate with reference checks, while 36% of employers say they develop a favorable opinion towards a candidate after a positive reference check.
Reference checks help employers make better and informed hiring decisions. With proper screening, they can exclude applicants who have been known for inappropriate behavior in their previous workplace or applicants who are not likely to add any value to the company.
“References lend credibility to an employee’s character. On conducting a check, if the reference turns out to be false, the organization may or may not terminate the individual, but the trustworthiness of the employee is definitely hampered,” said Zarin Bhathena, senior VP and head – HR, Wordline – South Asia and the Middle East.

Are reference checks completely trustworthy?

Reference checks are not foolproof. Almost 9% of employers skip this check because it is labor-intensive. Hiring decisions cannot be solely made on the information provided by a previous employer because it may be laced with bias.
“Everyone wants to be helpful and supportive to former employees, but in the end, they offer little substance to a new employer,” says Steve Langerud, Director of Career Development at DePauw University. “Legally, they are limited by what they can or want to say about former employees. I think the old formal system of references is dead in most professional fields.”

Making the right hiring decisions

The Middle East, in particular, is in a growth period and this growth has seen a massive influx of professionals from around the globe. It can be a challenge for firms to filter the prospective candidates who may have worked and lived in multiple geographies.
The idea here is not to point out that reference checks are unnecessary. Using reference checks to answer questions that you may not find on candidates’ resumes can be very helpful. These checks are meant to give clarity in cases where a candidate’s credibility and conduct cannot be ascertained through other assessments.
Reference checks are vital in ensuring that the organization’s reputation is not undermined, and the overall business is not affected.
http://press.careerbuilder.com/2017-06-15-Number-of-Employers-Using-Social-Media-to-Screen-Candidates-at-All-Time-High-Finds-Latest-CareerBuilder-Study
https://s3.amazonaws.com/filecache.drivetheweb.com/mr4enh_rhigroups_officeteam/1686/OfficeTeam+Lying+on+Resume+Infographic.jpg/
http://content.timesjobs.com/docs/TJinsiteApril2016.pdf

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