Reference checks

By Lee Rossini

After completing the interviews and deciding on one or two suitable candidates, before making a final hiring decision, the next step is to do a reference check. It is tempting to leave this step out, especially if you have interviewed a candidate who appears to be a perfect fit with the business. This is a short-sighted approach as there may be something about the candidate which is not obvious on their application or from the interview. Although not infallible, the reference check, if carried out properly, provides additional information on which to evaluate the candidates before making your final choice.

A reference check involves thoroughly checking the background of a prospective employee. The depth of the reference check will depend on the position that you are trying to fill. When employing a senior manager for the business, given the importance of the position, it is worth spending more time checking the background of the potential candidates.

Although no legislation specifically refers to reference checks, the process of checking must comply with the SA Constitution (see s 14, the right to privacy) the International Labour Organisation (ILO) Code of Practice and the Employment Equity Act 55 of 1998. This means you need to be very careful when carrying out the reference checks not to infringe on the rights of the candidates. To safeguard yourself, get the permission of the candidate to check their references. If this is not given, it should be an immediate red flag.

Reference checking is essential if the attributes of a position require integrity, honesty and good standing, for example, when appointing representatives or key individuals. Section 9(1) of the Fit and Proper Requirements, lists incidents which indicate whether a person is not honest, lacks integrity or is not in good standing. The onus is on the employer to check whether there is any evidence that a potential candidate does not meet these requirements. Considering the requirements of the legislation, the reference check should include:

Criminal records check
Financial affairs check
Professional body check
Qualifications check
FSCA and other regulatory authority checks
Driver’s licence (if required to carry out the job)
Character and previous employment check

When checking character and previous employment, the most commonly-used method is to request candidates to provide the names, occupations and contact details of three or more individuals who can attest to their suitability for the position. The problem is that these references often lack objectivity as the candidates usually only provide individuals who will give them glowing and positive recommendations. However, these references are beneficial in that they can be used to verify information regarding qualifications, position and length of time worked at previous employers and experience. The quality of the references given also provides some insight into the candidate. Professional references such as senior managers or directors are more credible than friends or junior colleagues. In some instances, the individual given as a reference barely knows the candidate or the candidate did not get the permission of the individual to include them as a reference - references of this nature should be disregarded.

A reference check saves time and resources in the long run. Taking the candidate’s word that he or she meets all the necessary criteria needed for the position may save in the short-term. However, the long-term consequences could be disastrous for the business if the candidate does not have the necessary attributes, or fails to meet the minimum criteria for the position. The reference check should be a documented process which is regarded as an essential part of the recruitment and selection procedure. Carrying out a reference check before employing a candidate will save the headache of having to deal with an unsuitable employee later and in a worst-case scenario, possible reputational and financial loss.

Sources:

Israelstam I 'Is reference checking legal?' HR Pulse (www.hrpulse.co.za, accessed on 19 June 2019).

Board Notice 194 of 2017, Determination of Fit and Proper Requirements for Financial Services Providers, 2017, Financial Sector Conduct Authority.