6 Essential Tips for Conducting Reference Checks.

​Everyone knows that when you hire an employee, it’s a good idea to check their references. This is a critical part of your due diligence as an employer. You need to make sure that the person has the work experience and qualifications that they say they do. 

Research has shown that up to 53% of resumes and job applications form contain false information! Candidates are guilty of everything from inflating job titles to listing ghost companies on their resume. Checking references is one of the easiest ways to uncover these falsehoods. It will give you more information to base your hiring decision on so you can make an informed choice. 

Some small business owners feel comfortable checking references on their own, and that is great! It is a fairly straightforward process. If you don’t feel comfortable phoning up your candidate’s references yourself, or if you just don’t have the time, you can hire a third-party to do it for you. Okanagan Small Business Services offers three types of reference check services which you can read about here.

​This article is for DIY entrepreneurs in BC who want to conduct reference checks themselves. In this article, we are going to discuss some legal requirements to be aware of before you start making phone calls, potential roadblocks and how to bypass them, and 6 essential tips for conducting reference checks yourself. 

LEGAL REQUIREMENTS

In BC, there are two main statutes that influence the reference check process: the BC Personal Information Protection Act (PIPA) and the BC Human Rights Code.

The BC Personal Information Protection Act (PIPA) requires that employers notify their candidates about the sources they intend to use as references. To comply with this requirement, you must obtain your candidate’s written consent before contacting their references.

The BC Human Rights Code protects all British Columbians from discrimination on a number of protected grounds (such as age, sex, marital status, etc.). This protection extends into the reference check process. To comply with this statute, you must ensure that your questions are job-related and non-discriminatory. 

POTENTIAL ROADBLOCKS

It has become commonplace for employers (particularly larger companies) to adopt “no reference” policies. Why? Because if an employer makes negative statements about an ex-employee (whether they are true or not), it can come back to bite them. If an ex-employee believes that their previous employer made statements that prevented them from obtaining new employment, they can sue the employer or file a complaint with the Human Rights Tribunal.

If an employer tells you they have a no reference policy, don’t give up. They may still be willing to provide you with some basic information, or what we refer to as an employment verification check. Unlike a reference check, an employment verification check sticks to the facts. It doesn’t ask subjective questions that may be perceived as discriminatory; it only asks objective questions that have one correct answer.

The primary objective of an employment verification check is to verify that your candidate has the work experience they say they do. It asks the following three questions:

1. Has this person ever been employed by your company?
2. What was their position or job title?
3. What was their start and end dates of employment?

Although an employment verification check will not give you insights into your candidate’s work ethic or job performance, it will allow you to determine whether the person has the work experience they claim to have or not. 

6 ESSENTIAL TIPS FOR REFERENCE CHECKS

Now that we have discussed the legal requirements to be aware of and how to circumvent potential roadblocks, we will get down to the nitty gritty! Here are 6 essential tips for DIY employers who want to conduct reference checks themselves:

1. ​Get Consent. The #1 most important thing to remember is that you must have your candidate’s written consent before contacting their references. It is appropriate to ask your candidate to sign a reference check consent form at the conclusion of the job interview. (If you need a consent form, you can purchase one from Okanagan Small Business Services for only $9.99)
2. Plan Standardized Questions. Before you begin making phone calls, it is best practice to plan a list of questions that you will ask. Asking all references the same questions will help you gather consistent information to base your decision on and prevent bias from skewing the process. It will also ensure nothing important gets missed.
3. Only Ask Job-Related Questions. This might sound obvious, but it is imperative that your questions are directly related to the individual's ability to perform the job. Questions that are not job-related may be perceived as discriminatory and could unfairly alter your decision. When planning your questions, ask yourself "do I need to know this?" and "what will this question help me assess?". There may also be times where you inadvertently obtain information related to a protected ground. If an employer voluntarily offers information about your candidate that relates to a protected ground, it is best to state that you are not interested in that information and proceed with your planned questions. 
4. Document the Process. It is best practice to document the reference check process for a number of reasons. First, documentation will help you remember everyone's responses. The information collected from reference checks may determine who you hire, so it's important that you remember what was said in each call. Second, documentation can be used as a legal defense in the event of a claim. If a candidate claims you discriminated against them by not offering them the job, you can use your notes as evidence to support why you hired one candidate over another. 
5. Maintain Confidentiality. Do NOT share information obtained from one reference with other references, and do not tell references who the other references are. It is inappropriate to share information gathered from reference checks with anyone who is not involved in the hiring decision.  
6. Check a Variety of Sources. Our last tip is (when possible), check a variety of reference sources such as past employers, current employers, teachers and co-workers. This will help you make a more well rounded assessment of who the person is. It is best to focus on the last five years of employment or the last three work references. For professional positions and jobs that expose others to a risk of harm, it is also prudent to conduct education verification checks and other background checks (as allowed by law). 

CONCLUSION

Well there you have it… everything you need to know before conducting your own reference checks. We are confident that you will do a great job! And if you decide you need a little professional help, we’re only a phone call away!

Okanagan Small Business Services Inc. 
Phone: (778) 738-0338
​Email: osbservices@outlook.com

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