Thorough reference checks will almost always prevent your organization from acquiring a problem employee or an employee unqualified to do the job for which they were hired.
There are two ways in which a bad hire can harm the organization: acts of commission and acts of omission. In the former, the employee commits an act that directly threatens the organization, such as theft or inappropriate behavior. In the second, the employee fails to properly perform his or her job. In one case I’m aware of, a company’s controller embezzled a large amount of money; however, it was the controller’s incompetence at managing the firm’s cash flow–not the embezzlement–that caused the business to fail.
When assessing a candidate’s qualifications for employment, one must guard against the temptation to make hiring decisions based on interview performance. Individuals who change jobs frequently may be very skilled at interviewing–they’ve had a lot of practice. Excellent employees, however, have little experience interviewing and may not promote themselves well. Therefore, hiring managers should not judge candidates on interview performance, since the best interviewers may be the worst employees!
More importantly, a candidate’s testimony about work history is self-serving: the better they make themselves look, the more likely they are to receive a job offer. Unprincipled candidates will utilize fabrications, exaggerations, and omissions to manipulate the hiring decision in their favor–particularly with a trusting interviewer. If you accept a candidate’s self-description at face value, you may end up hiring the best fibber rather than the most truly qualified candidate.
The best way to learn about a candidate’s previous responsibilities and how well the candidate performed on the job is to interview those individuals for which the candidate worked (”references”). The comments of these individuals, taken together, provide a realistic picture of the candidate’s experience, abilities, and strengths, as well as weaknesses.
References need not be limited to those provided by the candidate. Prior managers or supervisors can be located by placing a call to employers listed on the candidate’s resume, through Google, LinkedIn and other sources.
Occasionally, a sneaky candidate will provide fake references (don’t believe it? search online for “fake references”). Verify the position and employer of the candidate’s references to make certain the individual who answers the phone is not the candidate’s confederate.
If you check references through people you know “in the business,” be careful that your networking doesn’t tip off the candidate’s current employer, causing embarrassment, or worse.
The longer a candidate has been in the workforce, the more extensive their reference trail. That’s one advantage to hiring experienced workers, you can be more certain they are problem free and well-qualified.
