5 signs that you need to change your reference checking process

26 Aug 2021 by Chris Hunter

Manual reference checking – who has the time anymore? If you’re asking yourself whether it is time to automate your reference checking process, here are five signs that the answer is a resounding ‘yes.’

5 signs that you need to change your reference checking process

#1 You’re wasting time (and losing talent!)


When was the last time you had the time to have a chat with every referee on every resume for every job you’re looking to fill? If you think that it would take weeks, you’re probably right; it would, for a human. However, for a highly sophisticated piece of reference checking software, all it takes is a few clicks.


Online reference checking tools allow you to automate processes that would usually take hours. But it’s not just about the time saved on conducting reference checks; it’s about turnaround time for the reference too.


The time it takes a referee to send their reference back can be detrimental to securing your ideal candidate. For example, if you narrow your talent pool down to the top three candidates and begin reference checking on a Wednesday, you’ll be lucky to hear back from the referees by the following week. In that time, your ideal candidate may have accepted another offer.


With an online reference checking tool like Referoo, you can run checks on your preferred candidates simultaneously and have them back the next day.


#2 You’re wasting money


Manual reference checking is incredibly costly compared to the alternative. Let’s say, in an ideal world, it only takes a recruiter an hour to complete a reference check (often, it’s more), and out of the 500 applications you sort through, you narrow it down to a top ten. That’s at least ten hours spent doing something a computer could have done in ten seconds.


On top of that, the manual process is prone to human error. Hiring the wrong person can be unbelievably costly. The dollars start adding up from the very beginning of the recruitment process all the way through to onboarding and training, and if it all goes sour, then there are the costs that come with terminating someone’s contract. You want to make sure you get it right, and you can’t always rely on a “gut feeling” to make that decision. Otherwise, you’ll end up paying the price.


#3 You’re susceptible to fraud


One of the biggest challenges that recruiters face is fraudulent references. On average, Referoo flags at least one fraudulent reference out of every 100 candidates.


The most common reason? The candidate just isn’t the right fit for the job, and they don’t have a legitimate referee who can back up the skills and experience they claim to have.


Having built-in fraud detection in your arsenal during the recruitment process significantly reduces the chances of making the wrong hire. Referoo uses four primary methods to ensure a candidate’s references are legit: IP address and operating system matching, browser monitoring, tracked cookies on both the candidate and the referee’s browser and integration with LinkedIn to verify the user’s identity. And now, candidates and referees can confirm their identity using Digital iD™ by Australia Post.


#4 You’re missing out on high-quality references


Ever caught a referee as they were walking into a meeting or when dinner has just been put on the table? Their answers are short and not particularly helpful – and that’s if they even pick up at all. Referees often don’t have the time or patience to sit down for half an hour and go into detail about a candidate’s previous job performance. So, how do you avoid catching them at the wrong time? You let them choose the time.


Many references are completed outside of core business hours, so it makes sense to offer referees the option to return the reference when it’s convenient for them. With Referoo, every reference check can be customised to suit the scope of the job, and they can be conducted via email, phone or even SMS – the referee chooses what works for them!


Reference checks take as little as 30 seconds to send and only a few minutes for the referee to fill out and send back. Giving them the opportunity to respond in their own time and with their chosen medium means they’re more likely to provide useful, substantial answers.


#5 You’re missing out on data insights


Tracking references, monitoring productivity, and analysing data in real-time allows organisations to examine their processes and identify areas for development. In addition, having access to accurate, current data allows you and your clients to make more informed hiring decisions.


Because Referoo can be fully customised to suit every industry and organisation, recruiters can use this data to determine which questions elicit the best responses, which mediums come back the quickest, and whether they’re on track to meet their targets. Recording this information also offers valuable insights further down the track. If an employee leaves or is let go, their references may shed some light as to why.


The truth is, if you’re not implementing a tool that helps you automate reference checks, you’re probably losing the best talent to someone who is.

We’d love to show you what Referoo could do for you, and we’ll even throw in a free Referoo 14-day trial so that you can experience the benefits for yourself.