Checking References and Credentials

After you've decided who you'd like to hire, contact the references provided and verify the educational or other credentials presented. How extensive the check should be depends on the nature of the position and the need for established credentials. People who handle money or who can contractually bind your business require greater scrutiny than people performing clerical work. State and local governments have widely diverging laws regarding who must be licensed to engage in particular types of work.

To ensure that you get the best information you can, follow these rules when checking references:

Tell each applicant that no employment offer will be made until satisfactory reference checks are made. And, don't make a job offer until you've completed your reference checking.
Call or write to each reference given. If you aren't going to check references, don't ask for them.

If you get no response to a written request to an employer, call. Some people will tell you things that they wouldn't put in writing, due to time or caution. Former employers are the most likely to have the information that is most relevant to your hiring decision.

Warning

Never contact an applicant’s current employer without first getting permission from the applicant. If you do and the employer retaliates, the applicant can sue you for causing the loss of his or her job.

If you request references in writing, have the applicant sign a release allowing disclosure and include a copy with the request.
Retain all information that you receive. Also, document unsuccessful efforts to gather information from references, to protect you from negligent hiring claims. If a former employer won't tell you anything, record that fact.
If you can't get requested information from references, ask the applicant for more information or to clear the way for you with the references provided.
Verify that the information you receive agrees with what the applicant gave you.
Keep an organized record of the information that you receive regarding each applicant.

Checking references by phone. If you contact a former employer or other reference by phone, call once to schedule the reference check and call back when you say you will. This gives the employer time to remember specific facts about the employee or look up that employee's file. When you do call back:

Allot plenty of time in case a reference is willing to talk at length
Be sure it’s quiet: you don't want to be distracted, and the check should be private
create a script or checklist of questions to be sure you get all the information you need
take thorough and accurate notes during the conversation

Checking references by mail. Some employers won't give out any information unless they get a written request that includes the former employee’s signed release of information form. Always keep a copy of the letters you send. Use certified mail to establish that someone received your letter. Include your phone number in case a former employer wants to respond verbally. And, to increase your chances of getting a response, enclose a self-addressed, stamped envelope. Finally, ask that the response be made within a reasonable time frame so that you can make a timely decision regarding who to hire.

Personal references. If you ask for and check personal references, follow the same procedures you followed when contacting former employers. Since the applicant requested these people to provide references, they should be willing to provide information. Consider it a red flag if an applicant has lived in the area for some length of time but is unable to list any local references. Here's a sample letter for checking personal references.

Educational credentials. It’s important to make sure that the applicant has the qualifications and background you want. Most colleges or universities will verify an applicant’s degree or attendance, and many will do it over the phone. Some schools will send you a transcript if you follow the school’s guidelines for obtaining records. You can also pre-screen an applicant’s education by asking for copies of diplomas or certified copies of transcripts prior to the interview. Here's a sample letter for checking educational credentials.