One of the most important but overlooked steps of hiring someone is doing a reference check on the candidate. Most people think that former or current employers will not answer reference check questions or provide much insight, and that is usually not true. If a person has given you professional references, most of them should be willing and able to talk to you–especially if their feedback is positive!
In this article, we will go over the following:
- 3 Must-Ask Reference Check Questions (& 10 More For Good Measure)
- Top 5 Reference Questions You Want to Ask but Shouldn’t
- Tips When Doing a Reference Check
- Calling vs Emailing a Reference Check
- The Laws Around Reference Checks – Facts & Fiction
- Reference Checks vs Background Checks
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3 Must-Ask Reference Check Questions (& 10 More for Good Measure)
Reference checks don’t need to be long or awkward. Make your phone call with the 3 simple reference check questions below and you will typically get everything you need to know (bearing you are in a state where you can do this). If you are in a state that only lets you ask job performance related questions, we advise asking only question 1 and looking to our 10 questions below for more ideas. We’ll be covering state laws in detail later.
- Please tell me how you know (insert candidate name) & what you know of her (insert main function of role or job title) capabilities.
- Did (insert candidate name) report to you? If so, would you choose her for your team again?
- Do you have any reasons you feel I should be aware of to not hire (insert candidate name)? (A simple yes/no is fine, details are welcome if you’d like)
If you get someone’s voicemail, leave them a message with the exact reason you are calling:
“Hi, my name is Jason Smith and I am calling from ABC Company. We are calling to ask you 3 quick questions to do a reference check on Samantha Jones, who provided us your information and gave us permission to speak to you. Please do call me back at 555-555-5555 at your earliest convenience.”
10 More Reference Check Questions You Can Ask
Here are 10 more performance-based questions that you can ask during your call. Asking all of them is excessive–think about adding on the 2-3 most important ones for your role/company to the 3 we provide above. The goal is to spend about 10 minutes max on the phone with the reference.
- On a scale from 1 to 10, with 1 being very poor to 10 being excellent, how would you rank (insert name)’s performance in their role at your company?
- On a scale from 1 to 10, with 1 being very poor to 10 being excellent, what would you rank (insert name)’s (insert important skill for the role–i.e. teamwork, ability to communicate) capability?
- If you had to classify (insert name) out of the following options, which one would you pick: Leader, Listener, Cheerleader, or Task Do-er?
- (For sales roles) Can you share with me any rankings behind (insert name)’s sales performance while at your company? (or you can ask to verify what a candidate has told you, i.e. if they said they were number 1 at their company in sales for the past 3 years)
- What would you say was the candidate’s top contribution to the company while working at your firm?
- What would you say is the area the candidate could most improve in terms of job performance?
- What 3 adjectives would you use to describe (insert name)’s job performance?
- We really need someone who has (insert skill) in this role. Do you think (insert name) has a strong proficiency in this area?
- We are hoping that the person we hire for our role is going to be the manager of the team one day. Did you see management capabilities in (insert name) while s/he was at your company?
- Any other information that you could give me regarding (insert name)’s job performance would be greatly appreciated.
The Top 5 Reference Check Questions You Want to Ask but Shouldn’t
While we don’t like telling people what not to do, we are going to do it here. Remember to NOT ask these questions because they can land you in hot water legally.
Why did you lay off or fire (insert name)?
This is the number one no-no reference check question. No matter how much you are dying to know, don’t ask this. First, it’s possibly illegal depending on your state and could land you in hot water. Second, you should have asked this to the candidate during the interviews and assessed their answer from them, straight from the horse’s mouth. Don’t involve the old employer and get a rumor mill going.
What incident/problem/issue was most prevalent during (insert name)’s time at your company?
Stick to performance–repeat that in your head. Stick to performance, and do not open a door for a company or yourself to get in any legal trouble while conducting a reference check. We highly recommend using one of our performance-based questions above asking about negative things like problems.
I really think (insert name) is a great candidate, but it seems too good to be true. Have they ever lied to you?
This should be something you can think to yourself but not something you should say aloud. If you really think a candidate is lying, give them a test project (paid, of course) or an assessment to complete that is relevant to their skills (like a Microsoft Excel test problem) versus asking their old employer.
Does (insert name) have any home or family commitments that prevented them from doing their job?
This is a question that could lead into protected classes territory (e.g. gender or age). If you are worried about a candidate’s priorities, you should ask them directly in such a way that is relevant to the job, like, “Bob, we need someone who can travel 50% of the time. Is that going to be an issue?”
Can I see (insert name)’s HR file? I would really like to see their performance reviews and records.
Do not ever ask for files on a potential employee. There are laws around privacy here, and it’s unprofessional.
Tips When Doing a Reference Check
There are some important professional guidelines to follow while doing a reference check. While these are not laws, they are more of a code of conduct and following them will get you better results and keep your employer brand (both personal and professional) up to snuff.
ALWAYS ask the candidate for permission to check references (and for the people they want you to talk to)
You should always ask your candidate for permission to check references and for the contact information of the people they would want you to speak to. You can ask them for manager references, coworker references, or for at least 1 from their current role–that’s all fine. But just ASK them first. What if you get them fired because you call their current employer without asking? Now, that would be bad! So ask!
Never ask for inappropriate information
You probably know not to ask about a candidate’s religious affiliation, their marital status, or other things that could cover a protected class. Beware if the conversation with a reference begins to get casual and they start to overshare. Keep the conversation simple, and stick to your set questions.
Don’t hold it against a candidate if someone doesn’t answer your call or email.
People are busy. You as a small business owner know this. In fact, we bet you’ve forgotten to answer a reference call yourself. So please, don’t hold it against a candidate if you don’t get a response from someone.
Reference should add color to a situation…but not paint the picture
Some employers do reference checks no matter what, even on the candidate that is 100% awesome, checks all the boxes, and everyone likes. And then a reference check goes mediocrely, and they reconsider the offer. In most cases, this doesn’t make sense!
A reference check should add color to a picture that has been nearly completely painted. Go with your gut on your candidate, and don’t make employment decisions solely based on references. In fact, this leads us to our next tip.
Ask the candidate if a reference check went poorly
Did a reference call not go as well as expected? Ask a candidate about it. For example, you could call them and say, “Hey, Samantha. I just spoke to Ken at XYZ and I wanted to ask you about a few things he said that surprised me. Are you available to speak now?”
Give the candidate, especially if they are your top choice for an open position, a chance to tell you about the situation the reference disclosed. There are two sides to every story.
If you still feel like you want more information on a candidate, you can also run a background check. More on those later.
Calling vs Emailing a Reference Check
A phone is generally best if you want to have a conversation with the reference. Email may be okay if you just want a green light, red light response.
If you do email the reference, remember to write a good subject line such as “Quick reference check for Samantha Jones” and then introduce yourself. If you are friendly and honest, you are more likely to get a response. You should also add that the reference can always call you (provide a number and some good times to call) if that is more comfortable for them.
The Laws Around Reference Checks
Reference checks are a state-regulated area. Below we provide a table for the 10 most populated states outlining what you can lawfully ask references.
Top 10 Largest States Reference Check Laws & Information
| State | What You Can Ask/Disclose | Important Notes |
|---|---|---|
| California | • job performance • reasons for termination or separation • knowledge, qualifications, skills, or abilities based upon credible evidence • eligibility for rehire | Who may request or receive information: • prospective employer Employer required to write letter: • public utility companies only |
| Texas | Information that may be disclosed: • reasons for termination or separation (must be in writing) • job performance • attendance, attitudes, and effort | Who may request or receive information: • prospective employer • former or current employee |
| Florida | No laws currently exist on reference check information. | Who may request or receive information: • prospective employer • former or current employee Employer required to write letter: • only employers that require background checks |
| New York | No laws currently exist on background check information. | Who may request or receive information: • prospective employer • former or current employee Employer required to write letter: • only employers that require background checks |
| Illinois | Information that may be disclosed: • job performance | Who may request or receive information: • prospective employer Employer immune from liability: • information is truthful. Employer immune from liability unless: • information is knowingly false or in violation of a civil right. |
| Pennsylvania | Information that may be disclosed: • job performance | Who may request or receive information: • prospective employer • former or current employee Employer immune from liability unless: • information was knowingly false or deliberately misleading. • information was in violation of current or former employee’s civil rights under the employment discrimination laws in effect at time of disclosure. |
| Ohio | Information that may be disclosed: • job performance | Who may request or receive information: • prospective employer • former or current employee Employer immune from liability unless: • employer disclosed information knowing that it was false or with the deliberate intent to mislead the prospective employer or another person. • disclosure constitutes an unlawful discriminatory practice. |
| Georgia | • job performance • qualifications, skills, or abilities • violations of state law | Who may request or receive information: • prospective employer • former or current employee Employer immune from liability unless: • information was disclosed in violation of a nondisclosure agreement. • information was confidential according to federal, state, or local law or regulations. |
| North Carolina | Information that may be disclosed: • job performance • reasons for termination or separation • knowledge, qualifications, skills, or abilities • eligibility for rehire | Who may request or receive information: • prospective employer • former or current employee Employer immune from liability unless: • information disclosed was false, and employer knew or reasonably should have known it was false. |
| Michigan | Information that may be disclosed: • job performance information that is documented in personnel file | Who may request or receive information: • prospective employer • former or current employee (there are more items, look here for more information) |
Source: NOLO
For more information on your state’s laws, read at this great resource from NOLO, which has the laws for all 50 states.
Reference Checks vs Background Checks
A reference check is usually done when an employer is in the final phases of recruiting a candidate and considering giving them the job offer. The potential new employer usually calls a list of 1-3 references provided by the candidate and asks them simple, compliant reference check questions or follows the protocol set by the company (i.e. large companies usually require all reference checks to be done in writing or through a certain system).
A background check is usually done by a third party to disclose if the candidate has a criminal history, is on the terrorist watch list, or other legal-related issues. For example, in healthcare and in childcare, certain roles require by law background checks for employees to work in those industries. Background checks MUST be approved by the candidate prior to searching his or her information. To learn more about background checks, check out our buyer’s guide.
So Which One Should I Use?
The general rule of thumb is that a reference check is a good idea for nearly all companies in all hiring situations. However, a background check should only be used when necessary or required by law as the information obtained should not be used to discriminate against giving a candidate a job offer if the employer “doesn’t like” what they find.
For example, if you run a marketing agency, and you run a background check on someone and find that the person got a DUI in college, if you were to then use that information to not give them the job, which is completely unrelated to their job duties, you could be swimming in hot water. If you run a trucking company and found an employee had a DUI at one point, that is a different situation since the job requires driving and the former charge would be relevant to their work.
The Bottom Line
Reference checks are an important part of the hiring process, especially if you have a candidate who is say, 70-80% there, and you want to make sure you can train them. However, reference check questions aren’t the end all be all, and they do require a professional code of conduct, both unwritten and by state laws, that you should follow. Be sure to check out our article on how to hire great employees for more helpful tips on everything from recruiting to firing.
Don’t forget to check out Indeed, the #1 job board for small businesses. Click here for a free $50 credit to post your job.
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