Deep digging necessary to make great hires

References are the one of the most important tools for making successful hires. Surprisingly, they are also one of the most neglected.
Too often references are viewed as a formality, rather than an integral part of the hiring and vetting process. As a result, they are often rushed, and not conducted in a rigorous way. That’s too bad, because references provide a unique window into a candidate’s performance, personality and character.
References enable a hiring manager to build a 360-degree view of a candidate. After all, it’s one thing to talk with a candidate about his or her accomplishments, but quite another to get third-party testimony from former bosses, peers and subordinates on how they performed in past jobs.
Given their obvious utility and importance, why do references get shortchanged? Probably because doing them right is time consuming, and they are not very exciting. They also come at the end of the process, when the hiring manager feels reasonably sure of his or her decision and wants to move forward to close the candidate. In an effort to keep things moving, it’s tempting to rush references and assume past employers have vetted the candidate. But that’s not a safe assumption.
In many cases, corporate human-resource departments do not provide much help, either. Surprisingly, many companies fail to provide hiring managers with strong referencing guidance and support. Even those that have sophisticated processes for candidate screening and interviewing often neglect to spell out a thorough process for conducting reference checks.
References are just as important as interviewing, so do them right. Define a process, make it an integral part of your hiring system, and execute the plan.
Preparing the game plan
Do not pick up the phone until you know exactly what you want to accomplish. Consider the following to define clear plans and objectives:
• Do in-depth references after you have identified one or two finalists. The idea is to dig deep into the candidate’s past performance, especially issues raised in interviews, by seeking insights from former bosses, peers and subordinates.
• Plan to talk with enough people (a minimum of six to eight). Speak to all recent former bosses, plus a mix of former subordinates and peers.
• Supplement the candidate’s reference list with others you identify on your own. Find these “blind” references by networking with the candidate’s references or through other avenues. It is good practice to tell the candidate you are going to do this, and to secure permission in advance.
• Define who is responsible for referencing. If you are the hiring manager, you have more at stake than anyone else. Get your hands dirty and do two or three of the most important references yourself. However, if you have access to an HR professional or executive search consultant, ask them to do the rest. They have specialist expertise that will be helpful.
• Build a list of questions in advance. Know what issues you want to explore. In addition to generic questions, dig into issues that arose during your interviews.
• Sometimes candidates who are referred by board members, investors or other insiders get a free pass on references. That’s a big mistake. Make sure you put everyone through the same process.
Conducting the calls
• Control the pace of the call. Calls will take 15 to 30 minutes, depending on how much information the reference can provide, and what issues come up. Don’t hang up until you are satisfied that you have all the information you need.
• Use the list of questions you developed as a guide, not a script. Reference calls are a conversation, and you should be prepared to improvise and follow the discussion wherever it takes you.
• Be politely persistent. Keep pushing until you get straight answers. When the answers just raise more questions, pull on the loose ends until you understand the issue.
• Bear in mind the old adage “You don’t know what you don’t know,” and be open to unpleasant surprises. References often raise subtle negatives that are easy to miss, especially if you don’t want to see them.
• Be on the lookout for other, less subtle red flags. For example, people who don’t get back to you promptly usually are not enthusiastic about giving the reference. And vague answers, even after careful follow-up questioning, almost always signal an issue that must be explored in more depth.
• Finally, communicate the results of the references by documenting the calls in writing and sharing the results with those who have been involved in the interviewing process. That way everyone understands when concerns about a candidate have been put to bed, or when problems lead to a decision to not make an offer.
Many hiring managers view references as something to be done after they make a decision. If that’s your attitude, make a small mental shift and start thinking of references as the final step to be taken before making a decision. The subtle change in perspective will help you view the process differently.
The downside risk of hiring the wrong person for an executive-level job is huge. Doing a great job of referencing will dramatically reduce the risk of making a bad decision. The payback can be huge, so make sure doing rigorous reference checks is part of your hiring process. •
Michael Travis (mtravis@travisandco.com) is the principal of Travis & Co., an executive search firm for medical device, biotech and pharmaceutical companies.