Reference Checking: 5 Reasons Why You Need It

Are you looking to expand your company or recruit more people for your organization?

So, you’ve narrowed down your search for the ideal candidate for the position. You’re tempted to hurry through the employment process since the requirements are perfect, and the monetary reward helps you feel like you’re created for one another, but wait!

Did you execute an employee reference checking as part of your due diligence? It is critical to conduct a pre-employment peer review, which includes contacting the individual’s references to confirm their academic background, employment experience, and other relevant information.

If you still believe that conducting a thorough job reference check is a waste of time, here is a list of compelling arguments to persuade you differently.

The following are five compelling reasons to conduct job reference checks during the hiring process:

1. The Safety of Employees and Consumers

According to a 2020 poll, 83 percent of employees thought reference verification was important mainly for the security of the company’s workers and clients.

2. Get to Know your Candidate

References allow you to see the candidate’s work process, productivity, abilities, credentials, and more from the perspective of another excellent manager, allowing you to better determine if they are the appropriate match for your company. And this method allows you to evaluate an applicant’s aptitude and, as a result, improve the quality of future hires.

3. Avoid a Lawsuit for Irresponsible Hiring

Negligent hiring, as the word implies, refers to a company’s failure to fully investigate an applicant before hiring. In this scenario, the employers are accountable for the worker’s information or should have had. As such, the courts have consistently stressed the employer’s responsibility for careful hiring, particularly in workplaces that pose a public safety risk.

Meanwhile, in a famous case wherein the jury awarded $1,000,000 to the wronged party serves as an example and reinforces the importance of the background and reference procedure. Furthermore, in such circumstances, running reference checking plays to your benefit.

4. Preventing Losses

You may believe that paying for pre-employment screening is a waste of money, but this is far from the case. Whether that’s negligent hiring litigation or employing the wrong person, you’ll lose a lot of money if you don’t do your homework using reference factors such as reliability. It will also promote a good working environment, increasing everyone’s morale

5. Stay Away from Negative Publicity

A bad encounter can have a long-term influence on a company. Your staff will be the public face of your organization, and as a result, recruit only those that you believe are deserving of your brand. Even if that means that the process takes longer, do not recruit someone you aren’t confident of. Negative reviews from associates or applicants can lead to more damage than you might anticipate.

According to a study, major corporations and reference check firms have paid more than $325 million to settle history check-related disputes in the last decade. As a result, it’s critical to be aware of your responsibilities. But before doing a background investigation, whether to analyze credit reports or speak with a 3rd party, a company is legally required to get the applicant’s consent. Furthermore, an employer cannot discriminate against an applicant based on race, color, handicap, nationality, sex, gender, genetic data, or age.