How to Turn Reference Checking into an Effective Candidate Assessment Tool Yves Lermusi (aka Lermusiaux) { { { { { { { CEO of Checkster Former president of Taleo Research, from start to Taleo IPO (TLEO) Founder of iLogos (acquired by TLEO) Named one of the “100 Most Influential People in the Recruiting Industry” Blog has been recognized as the best third party recruiting blog Spoke from New York to LA and from Paris to Singapore at conferences with audiences up to 2,000 people Quoted in Fortune, The Wall Street Journal, Financial Times, Business Week, Time Magazine… 2 2008 Copyright, Checkster LLC 1 Who is Checkster ? Provides online Leadership Development & Pre-hire Tools 3 2008 Copyright, Checkster LLC What you will learn 1. 2. 3. 4. 5. 6. 7. 8. 9. What is a reference check? Why use reference checking? When to use reference checks? For whom to use reference checks? Who should be references? What questions should be asked? Legal issues 6 ref checking methods (&automation) Summary & 2 core decisions 4 2008 Copyright, Checkster LLC 2 1. What is a Reference Check? 5 2008 Copyright, Checkster LLC NOT background check Reference check Background check Check previous colleagues’ opinions on an individual’s performance. Checks background information of candidates. Typically includes a drug check, criminal check, verifications,… REASONS TO HIRE A CANDIDATE REASONS NOT TO HIRE A CANDIDATE Assessment Red/green flag 6 2008 Copyright, Checkster LLC 3 Successful Reference Check ? Not only avoid a bad hire But Increase the chances of a quality hire 7 2008 Copyright, Checkster LLC 2. Why use Reference Checks? 8 2008 Copyright, Checkster LLC 4 Are you performing Ref check ? 1. 2. 3. 4. 5. Yes, for 100% of external hires Yes, for 100% of external &internal hires Not consistently Looking to start doing it Looking to stop doing it 9 2008 Copyright, Checkster LLC What are the criteria you use to identify top performance? 10 2008 Copyright, Checkster LLC 5 How many confused performance with experience? 11 2008 Copyright, Checkster LLC 12 2008 Copyright, Checkster LLC 6 Hire and promote first on the basis of integrity; second on motivation; third on capacity; fourth on understanding; fifth on knowledge; and last, and least, on experience. Without integrity, motivation is dangerous without motivation, capacity is impotent without capacity, understanding is limited without understanding, knowledge is meaningless without knowledge, experience is blind. Experience is easy to provide and quickly put to good use by people with the other qualities. Dee Hock, Founder of Visa 14 2008 Copyright, Checkster LLC 7 Success rate outside vs. inside 15 2008 Copyright, Checkster LLC 4 most accurate ways to screen (~0.5) { { { { 2008 Copyright, Checkster LLC Cognitive Ability Work Sample Tests Interview (structured) Peer ratingÎReference Checkup Source: The Validity and Utility of Selection Methods in Personnel Psychology Practical and Theoretical Implications of 85 Years of Research Findings. Psychological Bulletin, Vol. 124, No. 2, 262-274 16 8 Why use Reference Checkup? 1. Best assessment method Î Increase quality of hire 17 2008 Copyright, Checkster LLC Can be automated 18 2008 Copyright, Checkster LLC 9 New use of technology 19 2008 Copyright, Checkster LLC Accurate, Fast & Affordable Accurate Cognitive Ability Work Sample Tests Interview (structured) Best Process Reference Checkup Job Tryout Interview (unstructured) Traditional Reference check Education & Experience Guess Graphology Expensive or time consuming Age Affordable & fast 20 2008 Copyright, Checkster LLC 10 Why use Reference Checkup? 1. Best assessment method Î Increase quality of hire 2. Can be very fast & affordable Î save time and money 21 2008 Copyright, Checkster LLC 3. When use Reference Checks? 22 2008 Copyright, Checkster LLC 11 When do you perform reference checks? 1. 2. 3. 4. At the tail end of the process, as part of the background check (typically on 1 candidate) At the finalist stage, as part of the assessment (typically on 2-5 candidates) We don’t perform ref check Other 23 2008 Copyright, Checkster LLC 24 2008 Copyright, Checkster LLC 12 4. For Whom To Use Reference Checks? 25 2008 Copyright, Checkster LLC All positions External hires Internal promotions Lateral moves 26 2008 Copyright, Checkster LLC 13 5. Who should be references? 27 2008 Copyright, Checkster LLC Hard References,… HR Don’t contact the HR department… Unless you want to verify facts 28 2008 Copyright, Checkster LLC 14 Employment Verification { { { { Dates of employment Salary Title Eligibility for re-hiring 29 2008 Copyright, Checkster LLC Most important ! Who you ask 4 criteria: 1. Freshness of relationship 2. Lengths of relationship 3. Closeness of relationship 4. Nature of relationship 30 2008 Copyright, Checkster LLC 15 We Can Rely On Collective Feedback If some conditions are filled: z z z Diverse Opinions Independent Good method to centralize opinions 31 2008 Copyright, Checkster LLC Who is more often right? Studio Audience Expert 91% 65% 32 2008 Copyright, Checkster LLC 16 6. What questions should be asked? 33 2008 Copyright, Checkster LLC One Critical Question! Would you re-hire (or advise to re-hire) the individual? If no, why not? 34 2008 Copyright, Checkster LLC 17 Open-ended questions about: 1. Accomplishments 2. Strengths 3. Areas of improvements 35 2008 Copyright, Checkster LLC List of questions to ask List of questions in our white paper: www.checkster.com under Resources (white papers) 36 2008 Copyright, Checkster LLC 18 Material for recruiter Probing questions With the reference Checkup details the interviewer can probe further: { “Your reference described that you accomplished X. Could you describe what you did in order to achieve it?” { “ you are seen as being able to cope with stress and pressure. Can you give me some examples and what you did?” 37 2008 Copyright, Checkster LLC 7. Legal risk? 38 2008 Copyright, Checkster LLC 19 Organization’s side Can you be liable if you don’t check references? Yes, if any injuries result… 39 2008 Copyright, Checkster LLC Organization’s side Can you be liable when you check references? Yes, if you ask the wrong questions 40 2008 Copyright, Checkster LLC 20 Reference’s side Can you be liable if you give false references? Yes, “negligent reference”, defamation,… 41 2008 Copyright, Checkster LLC Risk on both sides but rare Giving Getting Too Much Discrimination Retaliation Defamation Discrimination Not Enough Misrepresentation Negligent hiring 42 2008 Copyright, Checkster LLC Table adapted from: Legal, effective References – Wendy Bliss 21 Do you need an applicant’s consent? Highly recommended 43 2008 Copyright, Checkster LLC Avoid risk with new model Checkster Model Traditional Model Candidate Recruiter References Candidate Recruiter References 44 2008 Copyright, Checkster LLC 22 Summary Do reference checks (automated or use questionnaires) Î It helps reduce the risk (discrimination and negligent hiring) { { Have applicant’s consent 45 2008 Copyright, Checkster LLC 8. Six methods to perform reference checks 46 2008 Copyright, Checkster LLC 23 6 methods: More Technology 1. Letter 2. Face to face 3. Phone 4. Email 5. Search 6. Online Tool 47 2008 Copyright, Checkster LLC How do you perform Reference Checks? 1. 2. 3. 4. 5. Letter/Face to face Phone Email Internet search Online Tool 48 2008 Copyright, Checkster LLC 24 6 methods: Truthful Low work required Consistency of report 6 7 Phone 7 Email 6 3 11 More Technology Letter Face to face Search Online Tool 49 2008 Copyright, Checkster LLC 25 26 Telephone Process Ask Give ref. # Report Recruiter Ca l l Candidate References 54 2008 Copyright, Checkster LLC 27 Checkster Process Invite Recruiter Candidate Invite Report References 55 2008 Copyright, Checkster LLC 56 2008 Copyright, Checkster LLC 28 Automated Traditional Manual Time consuming 57 2008 Copyright, Checkster LLC Summary 58 2008 Copyright, Checkster LLC 29 2 Core Decisions How? When? 59 2008 Copyright, Checkster LLC Improve hire quality Summary 3. Telephone or face to face before final interviews 1. Automated before final interviews 4. Telephone or face to face at tail end of process 2. Automated at tail end of process 2008 Copyright, Checkster LLC Save $ and decrease legal risk 60 30 Thank you www.Checkster.com Contact: [email protected] 61 2008 Copyright, Checkster LLC 31
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