Don't Hire a Liar, the Definitive Guide to Reference Checking

I. The Growing Problem of Deception in Hiring

• The High Cost of Hiring Liars: This section uses statistics and real-world examples like the case of Frank Abagnale and Bernie Madoff to illustrate the severe financial and human cost of hiring dishonest employees. It emphasizes the prevalence of resume fraud and workplace crime, highlighting the need for robust pre-employment screening.
• Why Reference Checks are Overlooked: This section explores the reasons why employers often neglect thorough reference checks, citing the tedious nature of the process, fear of litigation, emotional attachment to chosen candidates, and the perceived difficulty in obtaining honest feedback.

II. The Power of Reference Checks: Mitigating Risk and Legal Implications

• Exposing Credential Creep and Intentional Lies: This section delves into the phenomenon of “credential creep,” where candidates embellish or fabricate their qualifications. It provides examples of individuals caught in such lies and explains the tactics used by some to create false references.
• The Importance of Interview Skill vs. Real-Life Performance: This section argues that the interview process can be misleading as candidates become increasingly skilled at presenting themselves favorably. It underscores the importance of reference checks in uncovering a candidate’s true work ethic and capabilities.
• Legal Ramifications of Negligent Hiring and Referrals: This section focuses on the legal concept of “negligent hiring,” where employers can be held liable for crimes committed by employees if a proper background check was not conducted. It uses the Allstate Insurance Co. case as a cautionary tale and stresses the importance of obtaining truthful and comprehensive references to avoid liability.

III. Building a Foolproof Reference Checking System

• Identifying the Right References: This section emphasizes the importance of selecting appropriate references who can provide objective insights into a candidate’s performance. It cautions against relying on personal references or HR departments, advocating instead for direct supervisors, peers, and subordinates.
• Leveraging 360-Degree Feedback for a Complete Picture: This section highlights the value of obtaining feedback from various sources to gain a comprehensive understanding of a candidate’s strengths and weaknesses. It details how to approach references differently based on their relationship to the candidate and the specific insights they can offer.
• The Hiring Manager’s Role in Reference Checking: This section stresses the importance of the hiring manager personally conducting reference checks, particularly with the candidate’s direct supervisor. It argues that direct communication between counterparts fosters more honest and detailed feedback.
• Integrating Reference Checks into the Hiring Process: This section outlines a strategic approach to reference checking, beginning with pre-interview preparation. It emphasizes clarifying job requirements, using application forms with consent clauses to deter dishonest applicants, setting expectations for truthfulness during interviews, and using specific interview questions that can later be verified through references.

IV. Mastering the Art of Conducting References

• Optimizing Reference List Assessment and Preparation: This section provides a detailed checklist for assessing the suitability of each reference provided by the candidate, ensuring that their relationship and experience allow for meaningful feedback.
• Building Rapport and Encouraging Candor: This section offers practical tips on establishing a comfortable and conversational tone during reference checks. It suggests finding common ground with the reference, assuring confidentiality, using friendly communication, and paying attention to both verbal and nonverbal cues.
• Navigating Written References and Face-to-Face Interactions: This section discusses the limitations of pre-written references, highlighting the potential for bias and fabrication. It also explores the benefits and challenges of conducting face-to-face reference checks, noting the potential for more nuanced observations but acknowledging the difficulty in arranging such meetings.
• Utilizing the Telephone for Effective Communication: This section advocates for telephone reference checks as the most practical and efficient method. It stresses the importance of being well-prepared, asking spontaneous follow-up questions, and carefully analyzing the reference’s tone and choice of words.

V. Taking Action: A Call for Talent Management Optimization

• Perry-Martel’s 20-Minute Talent Management Tune-Up: This section promotes Perry-Martel International’s consulting service, offering a 20-minute telephone consultation to help organizations improve their executive search and succession management processes. It provides contact information and encourages readers to schedule a session.