Reference checks are often treated as a mere formality, but done correctly, they can provide crucial insights that prevent costly hiring mistakes. A strong resume and interview performance don’t always guarantee success—speaking with former employers can reveal key details about a candidate’s work ethic, strengths, and potential red flags. Here’s how to conduct reference checks that actually add value to your hiring decisions.

1. Understand Why Reference Checks Matter

Many hiring managers rely solely on interviews to assess candidates, but references offer an additional layer of validation.

• Confirm past performance. Did the candidate actually achieve what they claimed?

• Identify patterns. Have they consistently demonstrated key skills and behaviours?

• Spot potential concerns. Are there any warning signs about reliability, teamwork, or performance?

• Gauge cultural fit. How well did they work within a company’s environment and leadership style?

2. Choose the Right References

Not all references provide useful information. To get the most out of the process, ensure you’re speaking with people who had direct experience working with the candidate.

• Prior managers. Best for understanding work performance, leadership qualities, and career growth.

• Direct reports. Useful for leadership roles to gauge management and team-building skills.

• Peers. Helpful for assessing collaboration, teamwork, and interpersonal skills.

• Clients or vendors. If applicable, these can provide insights into communication and relationship management.

3. Ask for References Early

Don’t wait until the final stages to check references. Asking for them early serves two purposes:

• It weeds out unqualified candidates. If a candidate hesitates or struggles to provide references, it may be a red flag.

• It speeds up decision-making. You’ll have all the necessary information when you’re ready to extend an offer.

4. Structure Your Questions for Better Insights

Avoid generic, yes-or-no questions. Instead, ask open-ended, behavioural-based questions that elicit detailed responses.

• What was the candidate’s role and key responsibilities? Helps verify their experience and scope of work.

• How would you describe their strengths and areas for improvement? Gives a balanced view of their capabilities.

• Can you share an example of how they handled a challenge? Reveals problem-solving skills and resilience.

• How did they interact with colleagues and managers? Assesses teamwork, leadership, and communication.

• Would you rehire this person? Why or why not? A direct but telling question about their long-term value.

5. Use Backchannel References When Necessary

Sometimes, the best insights come from people not listed as official references.

• Leverage LinkedIn. See if you have mutual connections who can provide unfiltered feedback.

• Be discreet. Ensure you’re not putting the candidate’s current job at risk by reaching out inappropriately.

• Cross-check feedback. If informal references contradict what was said in formal checks, dig deeper.

6. Watch for Red Flags

Not every negative comment is a dealbreaker, but repeated concerns should be taken seriously.

• Vague or hesitant responses. If references struggle to give specific examples, they may be withholding concerns.

• Short tenure explanations. If multiple references mention abrupt departures, investigate further.

• Lack of enthusiasm. If a reference doesn’t seem eager to endorse the candidate, it could indicate past issues.

• Overly glowing reviews. While positive feedback is great, overly perfect references may not be fully transparent.

7. Verify Key Details

Beyond performance insights, reference checks should confirm factual details.

• Employment dates and job titles. Ensure accuracy to spot resume discrepancies.

• Reason for leaving. Cross-check this with the candidate’s explanation.

• Eligibility for rehire. If a company has a no-rehire policy, there may be a reason worth exploring.

8. Document and Weigh the Feedback

Once you’ve gathered insights from multiple references, look for consistent themes.

• Compare responses. Are strengths and weaknesses aligned across different references?

• Factor it into your decision. Don’t rely on reference checks alone, but use them to validate (or challenge) your impressions.

• Keep records. Notes from reference checks can be useful for onboarding and performance coaching.

Final Thoughts

Reference checks aren’t just a formality—they’re an opportunity to confirm a candidate’s potential and avoid costly hiring mistakes. By asking the right people the right questions, you gain deeper insights that can make the difference between a great hire and a regrettable one. Approach reference checks with intention, and they’ll become a powerful tool in your hiring process.