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Benefits of Carrying Out Reference Checks by Employers

A reference check is about doing some background check about a candidate in a job position to know more about their previous jobs, academic background, and even criminal records if they are there. Reference checks are mostly done by the human resource manager in an organization when they are having recruits into the organization, looking to promote a current employee among other reasons. Several benefits come along with employers conducting a reference check rather than just employing a new employee. In this article, you will learn some of the benefits of carrying out reference checks by employers.

As an employer, you are going to have a better understanding of the new employee before you hire them. When all the interview questions have correctly been answered by the candidate, the human resource manager or the hiring department should now embark on reference checking before they decide to give the candidate a letter of offer. Background checks which are also referred to as reference checks are essential when you want to know more about the candidate, is he reliable? You can only tell about the reliability of a candidate to the job position on offer after conducting reference checks from his or her former employer. When you contact her or his previous employer, you will get all the necessary information that you need to check the reliability of the candidate. For sensitive job positions such as the manager, cashier, and even a bank system’s administrator, reference checks are important because such positions need someone trustworthy.

Hiring by itself is a risk-taking activity, reference checks reduce the risk. Since you are hiring somebody that you don’t know, this is a risk that is being brought to the organization. You may have hired the right person who is productive or you may have also hired the wrong person who is not productive and also not honest. Conducting a reference check will help the human resource manager reduce the risk of hiring the wrong person which may end up being a repetitive exercise which is costly. Conducting a thorough reference check will reduce the risk of hiring a dishonest person because you will be aware of the type of person you are hiring. It is only through reference checks that an employer is going to be sure that they are hiring a professional.

When you are looking to promote an employee to a senior level from junior level reference checks are important. Promotions within a formal workplace do not just occur by coincident, a thorough background search is always done to identify the right person to be promoted to a higher rank whenever it occurs in an organization. Before a human resource manager promotes one of their internal employees to a higher position, they must also conduct a reference check from the head of the department and other sources to ensure the employee deserves the promotion. The performance records of the employee must be checked which is also part of the reference checking of an employee.

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