Ott Niggulis
Should you use reference checks in hiring
With reference checks, there are two schools of thought regarding their usefulness. Either they are not very useful as you confirm what you already know about the candidate, or that reference checks are more valuable than interviews.
Arguments against reference checks
In most cases, reference checks are done by contacting people that the candidates themselves have introduced to you. It’s highly unlikely that they would mention anyone who might be critical of their achievements.
Because of this assumed ineffectiveness, the checks are sometimes skipped or done superficially by people who are not adequately prepared and don’t have the needed context. It’s no wonder then that the result is not satisfactory.
Arguments for reference checks
Reid Hoffman, co-founder and executive chairman of LinkedIn, gives a great example of why you should use reference checks in hiring.
When hiring, he tries to find 3-5 people that he knows personally and that also know the candidate and asks them for a rating between 0 and 10 for the candidate.
A positive reference would be an eight or a nine, while a rating below seven and a perfect ten would get a detailed response. These ratings will then guide him during the interviews.
Notice that he doesn’t neglect someone with a “negative” rating but digs in to find out more. Why? Because context matters. A negative trait in one company might end up being the exact thing that another is looking for. It’s all relative.
A positive reference would be an eight or a nine, while a rating below seven and a perfect ten would get a detailed response. These ratings will then guide him during the interviews.
Also, Reid doesn’t use the rating system as the only way to make decisions. He uses the ratings as a way to guide the interviews.
Additionally, he contacts people he knows and presumably also know him. In most hiring situations, this is not the case. You are calling another executive who doesn’t know you or your company.
How Wisnio uses reference checks
At Wisnio, we use reference checks for every hire because, although not perfect, they give an additional data point to consider when making the hiring decision.
We have found that reference checks are useful as long as you take the time to prepare for them. This means being informed about the candidate and the executive you're calling. Also, have a plan for what you will ask and how that will help you make a hiring decision.
Just calling a reference to get a rating and then later dismissing a candidate because no one gave them a perfect score is a waste of everyone's time.
