Reference Check Is A Major Concern: Yes or No?                                                                                                                                    

Background screening is the process of confirming an employee's background. Before making a hiring choice, the reference check is considered an important pre-employment screening step to protect the company from a variety of potential hazards. It's a detailed investigation of a person's or company's business records, financial records, and, most significantly, criminal records.

During the screening and recruiting stages, employers undertake employment reference checks to collect information about a candidate's past job experience, such as soft skills, character, reputation, and personal traits that are not available through an Employment Verification.

The chances of getting detected are quite great. According to a survey, 75% of Human Resources (HR) managers have uncovered a resume deception through the reference check services.

A qualified job candidate is frequently denied a job offer due to an inadequate, unfavourable, or even malicious reference from a previous employer.

Nearly half of all job reference check vacancies are negative, which may surprise you. If you are not receiving offers, or if offers are abruptly revoked or withdrawn, or if contact stops, it may be time to examine your references. So, it is a ‘yes’ to have a professional reference check while hiring an employee. 

Checking Employee References: Benefits

Here are some of the advantages of reference check process before to hiring a new employee:

It can help the hirer to gain an idea  on the applicant from someone who has worked with him or her previously.. This may provide useful information in addition to what was found during the interview process. 

The online reference check might be a good method to learn more about what it's like to work with this person. 

If there is a claim of negligent hiring, it gives one line of defence. If you did your full research, including reference verification, and still didn't find an issue, there's a case to be made that you couldn't have known about it.

The reference check process can provide information that can assist you figure out whether someone is exaggerating their résumé, as well as when to ask for clarification.

Important fact,

Fraud costs businesses in the United States 5% of their yearly revenues, totaling to $650 billion in fraud losses due to the lack of reference verification.

Drawbacks Of Employment Reference Check

Even if it isn't a deliberate untruth, references might be incorrect. When you phone a prior employer to verify past employment or for reference verification rather than seeking a personal reference, the individual delivering the reference is frequently not someone who dealt personally with the applicant.

A well-prepared applicant will never offer you terrible references, so calling people who will only say positive things and provide no further information may seem like a waste of time. That is why the reference check process should be done in a professional way. 

Many companies are afraid of litigation and would just confirm employment dates today, making reference calls seem like a waste of time. Some employers try to fight this problem by employing the following strategy: Check to see if the person is eligible for rehire.

By involving your existing employer, you may increase your chances of having to compete with a counter offer from them. So, it is better to do an online reference check as a part of background verification. 

Employers must ensure that they follow all legal requirements when contacting references. To avoid discrimination accusations, companies must also perform reference checks consistently.

Process To Do The Employment Reference Check

 Make sure the candidate's name is correct.

 Confirm how they are acquainted with the candidate.

 Inquire as to why the prospect is a good fit.

Have the candidate's references rank him or her.

Determine the candidate's advantages and disadvantages.

Double-check your work with two verbal checks.

Keep an eye out for phony references.

To know the process in detail here is a suggestion of visiting our website and go through it for more relatable services. 

Focus Points,

If you discover anything during reference checks that might influence your choice, you should contact the job prospect for clarification before making any final judgments.

Negative information can be discovered for a variety of reasons from employment reference check, and this does not always indicate the person is no longer a suitable fit. Examine each situation separately.

To Conclude  

References are a good indicator of how you performed in past situations, whether you're looking for a job or trying to hire an employee. As an employer, it is critical to examine references. The significance of reference checks or profile verification is that the people you call for various scenarios may provide you a lot of information about the person you're interviewing or considering for a loan, and the employment reference check can help you decide whether or not they're the best choice.