What you need to know about reference checks

You’ve gone through the process of advertising a role, shortlisting people, and interviewing. You’ve got a preferred candidate in mind and there’s one final hurdle before you can offer them the job: the reference check.

Many employers question the value of reference checks. They can be fiddly and time-consuming, especially when you’re keen to sign off on your chosen candidate. But thoroughly checking out a person before you offer them a role can save you time in the long run and avoid any issues down the track.

“First and foremost, reference checks are used to validate employment dates, role titles and duties, but it goes further than that,” explains Miranda Doessel, a partner at u&u Recruitment Partners.

“90% of the time it will be a green flag, but where we see something that might be a red flag, that's where we might reconsider taking a candidate forward.”

A manager or supervisor can provide a more detailed reference than a colleague, Doessel says. “Supervisors and managers are able to provide a true indication of the candidate's capabilities, performance and areas for development, whereas a colleague or somebody within a different department doesn't have insight into that level of detail,” she says.

The same goes for personal references like friends or family members. “What we're looking for in a reference check is proven behaviours of the candidate in the workplace, rather than in their personal life,” Doessel says. “We would try to stay away from using character references unless it is, for example, an entry-level or graduate role where the candidate doesn't have prior work experience in a professional environment.”

For job seekers who haven’t told their employer that they’re looking for a new job, Doessel suggests speaking with a former manager or supervisor.

“We don't ever want to jeopardise somebody's current employment for a potential role down the track,” she says. “Oftentimes, references are not from a current employer – they're from a previous employer.”

Some organisations have a policy not to provide verbal or written references for current or former employees. Doessel says sometimes it’s possible to ask for a short reference letter confirming dates of employment and duties.

Or you might be able to speak with someone who’s no longer with the organisation. “If there’s a previous manager who’s no longer with the company, that person could potentially be reached out to for a reference,” Doessel says.

Can job seekers legally ask to see notes from a reference check?

Put simply, yes. “If the prospective employer has collected personal information as part of a reference check then it may be required to provide that personal information to the unsuccessful candidate,” says Andrew Jewell, Principal at Jewell Hancock Employment Lawyers.

“The Privacy Act 1988 does not require an employer to hand over employment records, however that exception only applies when there is an employment relationship. So under the Australian Privacy Principles it is likely a prospective employee can obtain [the] notes.”

Employers are bound to speak the truth, so you can be assured references will be accurate. 

Jewell explains that due to the legal risks involved in providing a reference, employers must be sure that what they’re saying about a previous or current employee is true.

You’ll have a more nuanced conversation on the phone than over email or text, Doessel explains. “Often it’s what's not said that's important. If we ask a particular question and the referee says, ‘I prefer not to answer that question’, that's more pointed for us,” she says. “One of the most important things about references is to do them over the phone.”

Always notify the job seeker that you will be calling referees so they can be prepared. “Referees are much more open to taking a call if they've had warning to expect a call from a potential employer,” Doessel says. “Try not to just go ahead and call referees even if they’re listed on a candidate's resumé.”

Ask clear, focused questions – and try to avoid open-ended or extremely direct enquiries. “When we're looking for a candidate's weaknesses, we ask, ‘When you worked with this candidate, did you recognise any areas for development?’ Employers are a lot more open to answering that question than a question specifically about weaknesses,” Doessel says.

To make sure a referee is who the job seeker says they are, Doessel recommends asking for a work phone number. If that’s not possible, ask for a work email address at the end of the call. “It’s important to qualify the referee as who they say they are,” she says.

Hiring is time consuming and often expensive process. When done thoroughly, reference checks can highlight any red flags or provide peace of mind that you’ve found the right person for the job.

Information provided in this article is general only, does not constitute legal advice and should not be relied upon as such. SEEK provides no warranty as to its accuracy, reliability or completeness. Before taking any course of action related to this article you should make your own inquiries and seek independent advice (including the appropriate legal advice) on whether it is suitable for your circumstances.

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