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Michael Harris
08-17-2004, 10:18 AM
To All:

This may trigger something in your search for a niche – reference checking in addition to background checks. It looks like speed is the real key on this one.


Reference-Checking Overkill

by Paul W. Barada – Monster Salary and Negotiation Expert

Question: The president of my company recently began insisting that recruiters get six or seven reference checks for each candidate. Most people barely provide three people as references, and it sometimes takes days to contact them. We have lost out on fantastic candidates because they accept another offer during our weeklong reference-check process. What can I say to the president to get him to lighten up and just do some hiring?

What the Expert Says: Believe it or not, there can be such a thing as too many references. It's more important to get the right references rather than a number of marginally useful ones. That way, you'll have better information on which to base a hiring decision.

You should check a minimum of three references; select those names with care, making sure that they have worked closely with the candidate and have thorough knowledge of his job responsibilities and performance level. There is a strong preference to supervisors, but subordinates, coworkers and clients can be added to the mix. The number of references may vary depending on the work history and the type of information you need to make a solid decision on the candidate. Covering the past seven to 10 years of a work history is a good guideline and will allow you to track a candidate's performance and career progression, as well as to identify any patterns, recurring problems or issues.

There is validity to the issues you mentioned in terms of time constraints and availability of references. Review your upfront process to make sure you have all the necessary information from your candidates -- the right contact names, best times to call, etc. Put the burden on the candidate to produce the names of people you want to talk to, rather than accepting a list of names and numbers from them and finding out later they are personal references, business and golfing buddies, etc.

Get three relevant references to start with, and if the information provided is positive, thorough and jives with the application information, work history and what the candidate told you in the interview, you probably have a winner. However, if concerns are raised or red flags appear, you will need additional references to confirm or dispute the issues. Using more references ends up being repetitive, time-consuming and offers nothing new to a reference report.

My recommendation is to come up with a new upfront process to show the president. Let him know that you understand the importance of reference checks and will contact only the most relevant references -- people who have supervised and worked directly with your candidates.

Develop a separate reference information form and include a waiver with it. On the form, request four to five names of work related references and use three references as your screening criteria. If questions are left unanswered or more info is needed, then go to extra references. Remind your recruiters to be as thorough as possible in the reference interviews -- ask all follow-up questions, don't let anything slide; don't take things at face value, etc. Develop a more in depth format for references interviews. Tell your president that your recruiters go straight to the sources who know the candidate best and leave no stone unturned in checking references.

April Rank
09-27-2004, 01:01 AM
Michael, do some companies contract things like this out? I could do this from my home phone and computer. If I had guidelines like what you just posted, it would not be too hard to get to the meat of the matter. I'm hoping that many companies are too busy producing their product and are too poor to have a personnel department. Then maybe I could pick up some work doing this. I just would need to know how to get started.

Thanks for the info. It gives me a lot to think about.

Michael Harris
09-27-2004, 12:07 PM
April,

Most companies contract out the background checks - it pushes the liabiltity onto someone else. However, in New Jersey I am not allowed to do this work unless I am an employee of a licensed PI firm or an employee of a law firm.

You need to check your state's laws to see if you can do this work without a license.

Aside:
Question: What is the purpose of a Human Resources (i.e., personnell) Department?

Answer: To prevent lawsuits.

Cleo Evans--
09-27-2004, 02:46 PM
Michael, do some companies contract things like this out? I could do this from my home phone and computer. If I had guidelines like what you just posted, it would not be too hard to get to the meat of the matter. I'm hoping that many companies are too busy producing their product and are too poor to have a personnel department. Then maybe I could pick up some work doing this. I just would need to know how to get started.

Thanks for the info. It gives me a lot to think about.


April,
There is an abundance of contractual work to be done out there! You would have to research your own laws for the state of Arkansas, but as of four years ago, Washington state requires that you obtain your own agency license. This is more expensive than working as an investigator employee for an agency. In addition to higher licensing fees, you will also have to get your own insurance and business license.

I believe the cost would be well worth it. I was interested in Home Health Care Professionals background checks. Every day, we hear or read of lawsuits, accidents, injuries and death
occurring in our nursing homes. In many cases, these could have been prevented or simply avoided, if critical information had been retrieved, checked, and verified. I found that a majority of nursing home employers only do local (state) background checks. Personally, I don't think that's good enough. If a job applicant comes up from California and is applying for a job in Washington...BOTH states should be checked. National checks would be ideal but costly. :(
Some companies may sign up for a Maintenance Contract at a large discount to their company.

With your own business, you can draw up a Maintenance Contract with companies to re-evaluate their employees periodically. For example: Thorough background checks on bus drivers for DUI's, etc.; trucking companies (their drivers), and even Lost Recipients of pension funds. The list goes on and on.. :D .

Employers, must practice due diligence these days. Possessing current, accurate and thorough information, makes for informed decisions, thereby reducing risk, and exposure to fraud or liability through negligence. :eek: ;)

Hope this gives you some food for thought! :)

Have a nice day,
Cleo