Reference check for new joinees - Should we do it before releasing the offer or after?

Dear All,

I have a few queries about the reference check process:

1. Should we do it before releasing the offer or after?
2. If we do it after releasing the offer and the feedback is negative, what happens if we withdraw the offer and the candidate has already submitted their resignation?
3. Can it affect the candidate if we conduct a reference check before releasing the offer, and their previous employer finds out that the employee is job searching, especially if we decide not to offer them a position?
4. Can someone explain the correct process for reference checks? When should we check? Whom should we skip, etc.?
5. Should we hire an external agency for this task? If we aim to minimize expenses, at what level can we engage an external agency?

I want to establish a perfect process in my company.

Hi Parul,

Please see my guidance below, against each point:

1. Preferably, reference checks may be completed before the offer is rolled out - saves a lot of effort in the entire onboarding process.

2. If you find major misinterpretations in the provided details, you may withdraw the offer. For minor observations, seek further explanations and record more explanatory evidence. Please do not reject a candidate just because their previous manager(s) have written negative things about the candidate - ignore or eliminate such negative remarks. If we start following negative comments from previous managers, hiring will not be possible in the corporate world. Every manager might have some past issues, grudges, career-hijacking, blackmailing, professional insulting, demeaning, shaming, and subjugation issues with their reportees - ignore such negative comments and focus on how the hired candidate can do the job perfectly.

3. Reference checks with the candidate's current organization must be sought only after onboarding to avoid risks to your organization - they might try to prevent the candidate from joining you. Verify tenure, designation, salary band level, location - that's all and should suffice. Ignore negative comments.

4. There is no 'one-size-fits-all' reference check process. Consult a good third-party BGV vendor, and they will explain the modalities for background checks. Choose as per your requirements and budget.

5. Refer to #4 above - a thorough vetting process is required before handing over the responsibilities to BGV vendors.

Additional quick thoughts:

1. Go easy on offered candidates. Follow-up observations with a polite and subtle conversation. Do not panic them.

2. Negativity during background verification is common in ineffective workplaces - ignore such negative comments unless you want to verify them yourself. For instance, if a previous manager comments that the employee has been an underperformer consistently for 3-4 years, question why the organization didn't take action or why the candidate received a good bonus and certificates of appreciation. These aspects prove the candidate is suitable for onboarding.