Why you should read this
Although references take time, gathering multiple data points on a candidate is worth the investment prior to making a final decision to hire them. Done well, you can cut through to harness the value, without overplaying or being skewed by the inevitable bias. There are some fail safe tips on getting the best of the process of taking references, which we hope will help you turn this part of the hiring process into a risk mitigation lever.
Where to begin
First off, know the difference between the type of referee and set a clear expectation of what you likely to get out of that particular data point. We’ve highlighted three obvious types here:
- Unnominated referee, or back-channel reference
- Ecosystem connection
- Nominated reference
A back-channel referee is useful earlier in the hiring process, to flush out any obvious red flags before you invest in a full assessment of the candidate.
An ecosystem connection can validate a candidate’s involvement in a company or project, and if the individual is stand-out fantastic or outstandingly bad, they’ll probably tell you.
The candidate provides names, usually once you’ve decided you are getting close to making an offer to them. These individuals are known and can provide a detailed read on strengths and weaknesses of the candidate. A nominated reference is destined to be a positive reference, by its very nature. So expect sugar coated comments.
Let’s now focus in on nominated references
To set up for success, make some decisions on the following:
- Who to ask
- What you are trying to get out of the reference call
- It’s important to understand what a referee can realistically and honestly tell you and what you can therefore expect in terms of valuable insight. Be vigilant to any remark which is even vaguely negative, because this will also have been sugar coated and you can safely magnify it’s importance
- A referee should tell you:
- Whether someone has a skeleton in the cupboard, is a non-performer, etc…
- The scope of role, or top skills the candidate has previously mastered
- Out of all the things the referee saw the candidate do, the things they are best at
- The way they are to work with, what it’s like to work with them and what others in the company generally thought of the candidate
- The behaviours that manifest when the person is thriving and the ‘derailers’ or behaviours that come out under pressure or stress
Best practices we recommend
- Issue an offer letter which is subject to references.
- Ask the candidate for 8-10 names. All people who had known them in a professional environment. Bosses, peers, subordinates, advisors, suppliers, 3 party partners.
- Ask a selection of 3-4 people to start with.
- Try and write down as much of the reference as verbatim as possible. Ask the same questions of each; look for consistency; the same words should begin to re-occur. Listen for the difference between someone saying that the person was excellent/efficient/a decent person to…..this person was exceptional/inspiring/the best I’ve ever worked with/much valued etc…Hyperboles are a good thing in references.
- If you spot inconsistencies, or someone refers to an event or incident that could be subjective, dig deeper and use the other names who can give you a balanced/honest view.
- Complete the rest of the list (until you just know that you’ve got a picture of who the candidate is) to doublecheck any other issues/question marks. It’s surprising how often people use the same words to describe strong performers.
- Pay attention to hyperbole or effusive comments which go above and beyond. An emotionally charged comment is a very good thing, when taking a reference. There’s a big difference between saying someone is “great at what they do” and “I’d work with them again in a heart beat”.
- At some point in the hiring process, always find at least one person to call who has not been nominated by the candidate. This can be a light touch reference if you don’t know the referee well. Eg “I’m sorry to call you out of the blue on this but I’d love to get a sense check on X… would you give them a thumbs up or thumbs down?”
Remember, no-one is perfect and 30% of people just won’t like them no matter what they did, so the comments shouldn’t all paint a rosy picture where everyone in their previous life thought they were amazing. They should raise any red flags of malpractice or personality spikes that could be incongruous to your company culture and should give you more insight into what you are “buying”, and a fast pass on “how to manage them to bring out the best in them”.
Questions to make the most of reference calls
Here's a list of questions we know are valuable. It’s worth taking time to plan questions which give you specific insights on your potential hire, especially if you’ve got any niggling flags or doubts:
- Where is their core expertise, i.e. what are they best at out of all the things they have to do in their role?
- What kind of challenge or task would you give to this person and be confident that they would do a brilliant job?
- In advance of the reference call, select the top 3 things this person will focus on in the role, or the top 3 competencies you are looking for from the scorecard. Please could you stack rank, to grade their level of excellence on the following competencies, from best to worst [insert competencies].
- Of all the people you have worked with or met at a similar level or function, in which decile/quartile would you rank the candidate?
- How do we best communicate with them?
- How do we motivate them? What keeps them engaged?
- What form of recognition do they respond best to?
- What role does she typically play in a team?
- How do they handle conflict and challenge?
- How were they perceived by the broader work community and/or external partners?
- Did you ever see or hear of anything to make you doubt their professional or personal integrity?
- Is there any issue at all, that we should be aware of in advance of hiring this person?
- In what environment do they thrive?
- How do we best manage them? How do we get the best out of them?
- What values do they value in their colleagues?
- What frustrates them? What stresses them out? What causes them to come unstuck? And what behaviours manifest when they are under pressure?
- If you were starting to work closely with them again, what do you wish you knew about this person?
