Reference Checking With Signet Screening

HR Question:

Why should companies prioritize electronic reference checks as a critical part of evaluating candidates in today’s hiring process?

Answer:

Checking professional references for potential team members remains highly valuable and should be considered an essential component of evaluating new hires.

Is Reference Checking Worth the Time and Effort?

There was a time when the professional reference check, done properly, was one of the most critical elements of the hiring decision. Along with interviews, criminal background checks and drug screening, references provided meaningful insight into a candidate’s past performance. While resumes offer essential technical qualifications, references provide meaningful insights into reliability, work ethic, attitude, teamwork, and problem-solving abilities from individuals who have directly managed or collaborated with the candidate.

Today, data shows us that the art of reference checking has been lost and the result is that there are now more mis-hires made. We all know how a bad hire will not only cost you monetarily but more importantly, it can negatively impact productivity, morale and company culture. The use of references can aid in avoiding those mis-hires.

The reference checking process can present challenges for HR professionals or hiring managers, as conducting thorough reference checks requires considerable time and effort. Occasionally, misconceptions arise regarding the legality or permissibility of the practice. Furthermore, concerns about the value of a reference are valid—if it is simply a friend, honesty may be compromised, and responses may lack depth if the reference is unprepared. This can result in less informative references, raising questions about the process’s effectiveness. Nevertheless, when conducted professionally with former supervisors or colleagues, reference checks prove valuable and can significantly influence hiring decisions.

Professional Screening Services Help Ensure Consistency and Compliance

Conducting comprehensive reference checks can be time-consuming for HR professionals and hiring managers. The process often involves phone tag, scheduling conflicts, and inconsistent questioning. There are also occasional misconceptions about what is legally permissible to ask, as well as concerns about whether references will provide candid, useful feedback.

Additionally, if references are unprepared or personally connected rather than professionally connected, responses may lack depth or objectivity. Despite these challenges, professionally conducted reference checks, especially with former supervisors or colleagues, remain extremely valuable and can significantly influence hiring decisions.

While employers or hiring managers can conduct reference checks themselves, using a neutral third party offers distinct advantages and ensures a more consistent, compliant process

Compliance

Professional screening companies stay current on evolving regulations surrounding background checks and employment screenings. For example, many states and local jurisdictions restrict inquiries about past salary information. A reputable third party ensures your process remains compliant, including adherence to the Fair Credit Reporting Act (FCRA). A third party will assist you with the proper notices, assuring you have the appropriate authorizations and disclosures.

Quality of Reference

Professional services help confirm the references are truly professional contacts — ideally someone who directly supervised the employee. Additionally, collection of information from different employers help to gain a more complete picture of a candidate’s performance and work style.

Electronic Efficiency

Many organizations, including Signet Screening, collect reference information electronically. This allows references to respond at their convenience in a comfortable setting, often resulting in more thoughtful, detailed, and candid feedback. Response times are typically faster as well, often within 1–3 business days. Electronic reference checks create a smoother, hassle-free experience for the employer while also providing clearer, more actionable candidate insights.

Consistency and Fairness

Third-party providers help standardize professionally developed reference questions so all candidates are evaluated consistently. Questions can be customized to reflect the specific role or industry, as long as they remain job-related and focused on performance, behavior, and related skills. Maintaining consistent questions helps support a fair, compliant, and comparable process.

 

Thank you to Jill Hilvert, Director of Operations at Signet Screening, for this article in her area of expertise. Clark Schaefer Strategic HR has partnered with Signet Screening for many years and appreciates their ongoing excellence and contributions. Signet Screening specializes in delivering accurate, timely candidate information through a variety of background screening solutions, including criminal checks, employment and education verifications, drug screening, motor vehicle reports and more!