Make reference count but use caution

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You've interviewed seven likely candidates for a job opening in your division. You’re ready to make your decision and you begin checking references. Three phone calls later, all you can find out is name, rank and serial number. His past companies aren't talking. How can you make a decision, if you can't verify his past performance?

If you have tried to check references lately, you may have had a similar experience. Companies are clamming up. The fear of being sued by former employees is limiting the flow of hiring information. In an extreme example, the August 1991 issue of "HR Magazine" reports that one firm lost $56,000 in a lawsuit for simply labeling a prior employee as "something of a character." It's no wonder companies are worried. (The name of the article is "The Cost of Candid Comments" by White and Kleiman)

Lousy performers are probably delighted by this tight-lipped policy but good employees are being cheated out of the recommendations they've earned. Employers aren't happy either. They can't get information they need to make good hiring decisions. Unfortunately, everyone suffers if the hiring process is diluted out of fear.

If employers are mindful of the law, and take a few precautions, they will be able to give meaningful references safely. Here's how:

·        A reference may contain both positive and negative information, provided that 1) the truth can be substantiated; and 2) the information is given without malice. It is important to give a balanced view of both the positive and negative, so you don't look biased.

·        Only answer the questions you are asked; don't volunteer information. If you offer any negative information, you could be seen as having personal malice toward the former employee.

·        Don't include your opinion. Stick to the facts. For instance, instead of saying the person had "poor attendance," state what the attendance policy is and the number of days the person missed. The person on the other end can draw their own conclusions.

·        Insist that all managers document the reasons for both positive and negative performance reviews. Save these documents, even after the employee leaves the company.

·        Refer to the following when giving a reference: performance reviews; employee’s former resume; former references; former application for employment; correspondence from third parties, such as customers, regarding the employee; letters of resignation and other employee documents.

·        When called for a reference, tell the person you will call back. This will do two things. First, you will verify that the person you call is actually who he or she says they are. Second, you will have time to gather the facts and you will be careful to consider the consequences of what you are saying. You may want to write the reference-but have someone who knows the law look it over before you send it.

·        When giving information to a friend in another company (Companies are now using informal networks to get reference information because formal reference checks reveal too little.), carefully follow the same rules. Explain to your colleague that you are protecting him as well as yourself...you never know when he could be called to the witness stand and have to reveal what you said.

·        Appoint someone in the company to give all references from the Human Resources Department. This individual should be familiar with the laws governing slander and libel. Since the reference would be based on purely objective, documented facts, the company would be less likely to be accused of "personal malice."

·        Ask employees for written consent prior to giving any reference information. Also tell employees who have been fired that you will give the reason for termination, if asked.

Giving no information hurts everyone. However, giving information without a uniform policy, could cost your company. A little attention before a problem arises is good business for everyone.

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