Commentary: Do you need background and reference checks? Yes, you do!

As candidates near the end of the interview process and you areexcited about hiring that person, STOP, take a minute and plan yourbackground and reference checking strategy. Why is it important tocheck background and references? Because this difficult economy hascreated a buyer's market in potential candidates and you want to becertain that you find the right person for your growing business.

Ideally, you would have at least two candidates at the end of theprocess who are both qualified for the job and can serve as a backupfor each other in case the other does not work out. This is whereclear and frequent communication is necessary to "keep a candidatewarm" and maintain their interest in your opportunity. Manyemployers that I have spoken to have questioned the reliability andvalue of checking references because of the time involved and myresponse is "Don't skip this crucial step!"

There are a few companies that can create a credit, education,and criminal background check for a nominal fee (around $70) withina few days. It is important to have the candidate sign a releaseform that allows you to check their background and may also includea DMV driver's license check as well as a controlled substancescheck; there are many forms that you can find on the Internet.

When it comes to reference checks, I ask the candidate for 10references: a minimum of three managers/supervisors, three or fourcolleagues, and the remainder are direct reports, if applicable. Ifa candidate has not done a good job of maintaining the network,coming up with 10 references will be difficult. It is alsointeresting if a management candidate cannot produce direct reportsfor references, indicating a "red flag" for her management style.

Occasionally, a client will question if reference checks areworthwhile, suspecting that there will only be positive referencesor the candidate worked for a corporation that has an officialpolicy of not giving references, only dates of employment andverification; however most people are willing to give a positivereview. No one will get sued for a glowing review.

Checking references takes time and you may have to leave a fewmessages and wait for a callback, so you need to be ready with a fewkey questions, such as:

What would you say are his/her greatest strength?

What would you coach him/her to improve?

In your opinion, if you were in charge of the hiring process,would you rehire this candidate?

This is completely confidential, but are there any red flags thatwe should know about?

Any job offer that you make should be contingent on referencechecks being clear, even if your state is an "at-will" state. Youare making a significant investment in recruiting, interviewing, andhiring a top performer, so it is well worth it to invest a littletime in knowing the person that you are hiring.

Ed Mayuga is a search consultant with Collaborative StrategiesInc., a strategic consultant and executive search firm. He can becontacted at 314.523.9421 or emayug@csi-mail.com.