Easy Small Business HR

Menu
  • HOME
  • ARTICLES BY TOPIC
    • All Articles
      • Background Checks
      • Dealing with Difficult Employees
      • Diversity
      • Employee Benefits
      • Employee Performance
      • Employee Retention & Engagement
      • Employee Theft
      • Employee Turnover
      • Employment Law
      • Fair Labor Standards/FLSA
      • Family Medical Leave/FMLA
      • Firing/Disciplinary Actions
      • Managing Employees
      • Pay and Salary
      • Policies and Procedures
      • Recruitment, Interviewing, Hiring
      • Supervisor Tips and Strategies
      • Workplace Safety
    • Close
  • RESOURCES
  • PODCAST
  • ABOUT US

July 17, 2012 by Dianne Shaddock 1 Comment

Clearing Up Legal Misperception of Reference Checking

Reference Checking

This piece was contributed by Gerad of Chequed.com, a leading reference checking software provider.

When it comes to reference checking, far too many organizations are falling down on their duties. Although organizations shy away from this practice because of uncertainty and misperceptions pertaining to the ever-changing, complex array of employment-related legal risks, reference checking should be a vital part of every strategic hiring process. And, really, there’s nothing to fear as long as hiring managers and recruiters are informed about the basic realities of reference checking in the eyes of the law.

1. Legal risks are actually low

Working on improving employee engagement?

EPIC is an Employee Engagement software that gives you the tools and insights to create a workplace culture that encourages engagement, loyalty, and trust.

TRY IT RISK FREE HERE

While some worry about the risks of engaging in reference checking, the reality is that they should be concerned about making a poor hiring decision. Making a bad hire because of lack of a thorough check is much more probable than legal action and can be even more costly.

Only 2% of companies that perform reference checks are targeted for defamation in their process. The legal risks of reference checking are similar to that of libel claims against journalists and news organizations – it must be proven that not only was harm done but it was also done with malice and dishonest intention. As a result the true legal risks are fairly low.

2. Consent is a Must

Prior to beginning any type of reference check, employers must receive signed consent from their candidates.  For reference checking, specifically, such a consent form should allow employers to seek out relevant information from both named and unnamed references.

By allowing access to unnamed references, the hiring manager is able to ask existing sources for additional candidate referrals in the event that initial results are substandard.   Assure references that they will remain anonymous. An automated reference checking  process that generates aggregate response data is one way to retain the anonymity of the person giving the reference.

3. Be Objective

Everyone learns about employment-related discrimination in HR 101. Yet, even many people still engage in subjective hiring practices.  Unstructured hiring is an open invitation for bias and subsequent legal liability.

In order to avoid such a problem, consistency is key – when asking  reference check questions and when assessing candidates. Candidates should begin the recruitment process on an even playing field and should be filtered out only through objective means.

However, humans, unfortunately, have an inability to completely avoid bias. Consequently, many companies are turning to technology as a solution. Automated reference checking and predictive pre-employment testing offer a highly effective solution that simultaneously decreases subjective liability, while maximizing the likelihood of selecting the best candidate.

Although, from the outside, the docket of employment regulations can seem mountainous and complex, the reality is that hiring appropriately is not only paramount but also quite manageable. If organizations follow these basic parameters, they’ll be well on their way to aligning their hiring practices with EEOC and other employment-related legal policies.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profile

Dianne Shaddock

President and Founder at Easy Small Business HR
Get more tips on interviewing, hiring, managing and engaging your employees. Dianne Shaddock is the President of Easy Small Business HR, Employee Hiring and Managing Tips and the author of the eGuides, "How To Supervise:  What Your Boss Never Told You Before You Took the Job", A Step-By-Step Guide For New and Seasoned Managers and "How To Find and Hire the Best Employees".
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profile

Latest posts by Dianne Shaddock (see all)

  • Build the Best Team for Your Small Business - November 12, 2019
  • Cross Training Staff – Doing the Right Thing For the Wrong Reasons - January 18, 2019
  • Proactive Employee Management Really Boils Down To The Basics - December 21, 2015
  • Office Meetings Do Not Have To Be A Productivity Time Drain If Done Right - November 17, 2015
  • Proposed Changes To Employee Rights Laws: WAGE Act Bill - November 3, 2015

Filed Under: Managing Employees, Policies and Procedures, Recruitment/Interviewing/Hiring, Supervisor Tips and Strategies Tagged With: Hiring Tips, Management Tips, reference checking

Comments

  1. Henry Killingsworth says

    October 21, 2021 at 18:34

    You made an interesting point when you explained that consent is a must when it comes to reference checking. I would think that it could be a good idea to use an automated form of checking references. It would make this process much faster.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Be Social, Let’s Connect!

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on YouTubeFollow Us on Reddit
Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on YouTubeFollow Us on RedditFollow Us on iTunes

Recent Posts

  • Build the Best Team for Your Small Business
  • Cross Training Staff – Doing the Right Thing For the Wrong Reasons
  • Proactive Employee Management Really Boils Down To The Basics
  • Office Meetings Do Not Have To Be A Productivity Time Drain If Done Right
  • Proposed Changes To Employee Rights Laws: WAGE Act Bill

Recent Comments

  • Lucia on The Consequences for Supervisors Who Ignore Poor Employee Performance
  • Norma on 10 Helpful Tips When Dealing With Difficult Employees
  • Henry Killingsworth on Clearing Up Legal Misperception of Reference Checking
  • Nyangoma Rachel on Diversity in the Workplace: Benefits, Challenges and Solutions
  • Online Training on Workplace Negativity Is Contagious – Here’s How You Can Control an Outbreak
  • Kristofina Grace on Diversity in the Workplace: Benefits, Challenges and Solutions

Top 25 Online Influencers in Human Resources

HR Examiner Top 25

Copyright © 2025 · Executive Pro Theme on Genesis Framework · WordPress · Log in