5 Reasons Why Employment Reference Check is Important

Employment Reference Check

So you shortlisted the perfect applicant for the job. The qualifications are just right, the monetary compensation makes you feel like you are made for each other, and you are tempted to rush through the hiring process, but wait! Did you follow the due diligence and perform a reference check?

According to the PBSA, almost 93% of employers include national criminal database searches in their background screenings. But that doesn’t suffice!

It is crucial to perform a pre-employment reference check that includes contacting the applicant’s references to uphold their educational background, employment history, and other necessary information vital to the offered position.

If you still feel that an in-depth employment reference check simply fritters away time, we have rounded up some fundamental reasons to convince you otherwise.

5 top reasons to perform reference checks in the selection process

1. Employees’ and customers’ protection

A PBSA survey in 2020 indicated that 83% of employees considered reference verification primarily for the safety of the organization’s employees and customers.

Consider this example, for instance. The long and short of the case is that The Kirby Company hired an applicant without conducting a proper professional reference check (explicitly pointed out during the hearing). Later, in 2013, the company’s female employees filed a lawsuit against the same employee in court for sexual assault and verbal abuse.

Thus, overlooking one aspect in hiring can affect the safety quotient of the entire organization.

2. Know your applicant

References help transcend the employment verification and know the candidate’s working style, performance, strengths, qualifications, and more from another experienced manager to better judge if they are the right fit for your organization.

This approach helps you assess the applicant’s potential and, in turn, increase the quality of new hires.

3. Prevent negligent hiring lawsuit

As the name suggests, negligent hiring refers to the employer’s failure to investigate an employee before hiring. In which case, the employers are liable for the things they know and should have known about the employee. 

The courts have repeatedly emphasized the employer’s duty for careful hiring, especially in the workplace that poses a threat to the public.

This classic case, in which the jury passed the $1,000,000 in favor of the injured party, stands as an example and reiterates why the reference check process is indispensable. Moreover, running these checks works in your favor in such cases.

4. Avoid losses

You may feel that you are shelling out money for nothing during background checks, but it is quite the contrary.

Whether it’s the case of negligent hiring lawsuits or hiring the wrong person, you will be losing plenty in comparison to following due diligence with our reference checking service help. Moreover, it will also ensure a positive work environment, thus boosting the morale of all.

5. Avoid bad publicity

P.T. Barnum, a showman, and politician said, “There’s no such thing as bad publicity.” This doesn’t stand true in a corporate culture!

Bad incidents can have a lasting impact on an organization. Your employees are going to be your company’s face. Hence, hire the ones that you find worthy of your brand.

What should employers know before conducting reference checks?

A CBS News report says that the big organizations and reference check companies have spent over $325 million in the last decade to settle background checks-related litigation. Thus, it is essential to understand your obligations.

It is required by the law for an employer to obtain the applicant’s permission before conducting the reference check, whether it is to examine credit reports or talk to a third party.

Additionally, an employer mustn’t discriminate against the candidate based on his/her race, color, disability, national origin, sex, religion, genetic information, and age.

At SpringWorks, we have developed an online reference checking service named SpringVerify that removes the hassle from the process and makes it a breeze. It gives you a complete report on the applicant by merely adding his or her basic information, which takes less than a minute.

As expected from excellent reference check software, SpringVerify is:

  • Straightforward
    The software is super intuitive and can start the verification process in a couple of steps.
  • Transparent
    The software is secured by Blockchain technology that ensures your shared data is secured, always!
  • Blazing fast
    SpringVerify performs the check 30% faster than other competitors.

Are you ready to dig into those reference checks and take your organization to the next level with better hires?

Pawan Kumar

I'm a Content Marketer at Springworks. I've been featured in many reputed publications and online magazines! I'm an avid reader and movie buff. Let's connect on Social Media.

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