Employee reference checking is often overlooked as part of the hiring process. However in the world of recruitment today, false applications are a major problem facing organisations. In 2013, there was a 70% increase in false employment applications, which were detected during employment screening. Luckily, checking references will prevent 90% of all application fraud. So why are so many organisations hesitant to implement employee reference checking into their hiring process?

This article counters any myths or doubts a company may have regarding reference checking.

1. Employee reference checking doesn’t really matter.

First of all, false employment applicants are currently on the rise and employment fraud costs companies in the UK an estimated 2 billion pounds a year, most of which is easily preventable.

Employee reference checking is the single most effective tool in preventing application fraud. 15% of candidates back out of an application as soon as a reference check is required. When it comes to checking references, you don’t want to take any shortcuts. It’s important to conduct a thorough check on all candidates.

Reference checking provides a number of benefits including lower employment costs and increased employee productivity. Reference checking will result in a lower employee turnover rate due to improved employee quality and better-fit candidates. This will of course save time and money when it comes to recruiting and training. The second benefit is increased productivity. When you hire the right candidates, this increases overall job performance. Candidates that are attempting to apply for jobs that are out of their skill set are not selected to move forward.

2. Employee reference checking should be the last step in the hiring process.

Reference checking is a crucial part of the hiring process. Reference checking will tell you whether the applicant’s skills and experience are at the level that you expect. To increase your chances of making sure the candidate has these required attributes, the reference-checking phase should be moved closer to the front of your screening and interview process. In order to save time and make sure reference checking is efficient, it’s important to use an automated system such as Employee-Check that will ensure reference checking is completed automatically.

3. You don’t need to follow up with referees.

Referees are often busy people, and won’t always remember that they need to complete a reference. Because of this, many reference checking systems are highly disorganised and inefficient. Employee-Check will automatically remind referees that they need to complete references, at any frequency that you determine. The system works on it’s own, without requiring you to put in a lot of manual effort. This takes the hard work out of reference checking and following up with referees, and helps guide the process in an automated manner.