Reference Checking: The Due Diligence Most Organisations Rush

My last article spoke about how competitive the search for executive talent is, packed in with global economic uncertainty and the rapid adoption of AI all impacting the process. I want to focus now on a highly undervalued step in the recruitment process, and that is reference checking! While it is essential that you are decisive when you think you have identified a candidate, the speed at which you make these decisions just may come back to bite you if you have not done your research.

The recruitment process is made up of a series of actions or steps, each providing important tests and measures to ensure that the candidate in question is going to be the right person for the role. The largest piece undoubtedly is the interview stage, and rightly so. It’s an extremely important part of the process and probably the one that takes up the majority of the time, probably about 70% of the overall process.

Other stages, while smaller, are also critically important. These are made up activities such as psych testing or other skill appropriate testing. For most, this slice is around 15% of the overall recruitment activities.

The other 15%, and unfortunately, sometimes not even that, is almost always the process of reference checking. It’s that last part that takes place once you think you know you have the person for the role. And people only nominate their most favourable referees right? So, what’s to be gained? For me though, this is the most critical period, but it is so often glazed over as organisations rush to secure a candidate before they take up another offer.

The reference checking process can save organisations from making major mistakes. These mistakes can be extremely costly and time-consuming down the track if the wrong person is placed inside an organisation.

If after interviewing a candidate you form a strong opinion that this is the person for your role, don’t push aside or simply gloss over the reference checking aspect of the recruitment process. I’ve always maintained that just about anyone can be on their ‘best behaviour’ for an interview or two, especially as most organisations allocate only an hour to each meeting. Reference checking really should and must be more than a “tick the box”.

A ‘successful’ reference check is about looking closely at the candidates resume and gathering data or patterns on their role moves and understand how the referee fits into their overall work history.

While technically we can only check the supplied references, there is no harm in asking for contacts from former roles or organisations. If you are told no, you must ask why, then dig a little deeper.

When speaking with referees, I believe you must treat it like another part of the interview process. Ensure that you understand the context in which the referee and candidate worked together, and above all else, ensure you speak to a number of referees to form a full picture of the candidate. If the feedback is consistent, then you are on the right track. If not, then don’t discount the small warning signs, dig deeper until the story unfolds.

You can better understand how a candidate adapts to an organisation’s culture and gain insights on the candidate’s leadership style. Especially when you use open ended questions. Moreover, it’s also the depth of the candidate we are investigating, and warning signs often emerge from the detail.

From a more cynical viewpoint. In the main, most candidates are upfront, honest and have the best of intentions when applying for roles. However, there can be the odd occasion where the wool can be pulled over your eyes, and frankly, AI makes that much easier.

Helpful reference checking conversation starters

Don’t just ask the obvious questions, subjective questions can often be quite enlightening.

Such as, ‘how intelligent’ do you think the candidate is, can start interesting conversations. Quiz referees on the candidate’s problem-solving skills  and ask what they believe the candidate grapples with – what causes them stress? Ask the referee why they believe the candidate left the role.

Also, discuss whether they would re-hire the candidate if they have the opportunity. Don’t just get a yes or no answer.

Ask the referee if there is ‘anything else I should know.’ This often opens the door for an executive summary on the candidate

Most importantly, listen carefully to the answers, watch for reaction times and circle back on questions until you can tie the whole picture together.

So, reference checking is not the administrative tail end of recruitment. It is a critical layer of due diligence. In a market where candidates move quickly and first impressions can be highly curated, this stage often provides the clearest view of how a leader actually performs over time, under pressure, and within a team. Done properly, it can confirm conviction, expose inconsistency, and prevent costly hiring mistakes before they occur. Rushing this vital step, is not moving decisively, its increasing risk!

Treat reference checking with the same discipline as interviewing. Go beyond surface-level validation, test for patterns, ask better questions, and listen closely to what is said, and where the detail does not quite align. The strongest appointments are rarely made on instinct alone. They are made when sound judgement is backed by thorough diligence.