reference-checkAn African America conducting reference check with a company manager

In every job position, it is necessary to know that when searching for a new role or hiring manager, a recruiter may ask you for a list of references. Also, an interviewer may ask for a professional or character reference to help them comprehend your work history and how it matches the job role you’re applying for. Furthermore, they may ask about your qualifications, educational background, and experience. Hence, learning more about this process could help you prepare ahead of time. However, in this article, we answer the question, what is a reference check? and how you can prepare for this process.

What Do You Understand By Reference Check?

A reference check is when a potential employer contacts people who can verify your skills, experience, education, and work history. Therefore, when you fill out a job application, the employer may ask you to name a couple of people who can confirm that you are who you say you are and that you have the right skills for the job. Human resource (HR) professionals or hiring managers usually gain permission from the candidate before collecting a reference check. They usually collect references by email or phone. Hiring managers rely on these references to:

. Learn about your professional history

. Find out how you’re likely to perform in different contexts

. Validate your interview answers

How a reference check is prepared.

Job references always add an independent evaluation of your skills, strengths, and work ethic. Hence, Hiring managers rely on the opinions of past employers, teachers, and other professionals to assess whether you may be a good fit. A good reference check demonstrates to an employer that you’re a stronger candidate. A hiring manager may contact your previous employer, teacher, professor, or other professional connected to you to find out whether you’re suitable for the role you have applied for or not. Therefore, the following steps help you prepare for this process:

1. Prepare references before you enter the interview process

Some hiring managers prefer to speak to referees before sending out job interview invitations. Based on the results of the reference check, the hiring manager may decide who to invite for an interview. Consider thinking about who you can ask for a reference before filling out the application. Review people who know you well and who may recommend you. You may consider previous managers, professors, or colleagues.

2. Ask someone before you list them as a reference

Consider contacting your potential referees before listing them as a reference. Ask if they’re willing and able to serve as a professional reference. This can give them time to prepare. It can also help you choose references who can comment on your work experience effectively.

3. Always read the application form carefully

Some employers may ask you to submit the names of the people who are giving you a reference, known as referees. If the application states this or contains a space for references, you may add them there. You can provide the names and contact details of each referee. If the employer doesn’t ask for references at this stage, you may wait to include them until you are requested to do so.

4. Prepare your referee

It is helpful to send the job listing or job description details over to your reference. This way, they can prepare their answers and learn more about the role. This can help them match your personality and experience with the questions the hiring manager is likely to ask.

What are the facts for choosing referees?

It’s important to have a list of current references available to support you in your job search. Think about what each person is likely to say about you and whether this would be relevant to the role you’re applying for.

Some Facts That Will Help You Choose Effective Referees:

In choosing a referee you have to put the following facts into consideration.

1. Compile a list of potential referees

Start by compiling a list of people who could be potential referees. These may include:

. Your last manager or supervisor

. Managers from previous jobs or internships

. Managers from other departments that you have worked closely with

. People you have worked closely with during the last five years, such as colleagues, clients or suppliers

. Community leaders and managers of voluntary organizations you have worked with

If you have recently graduated or left school and you don’t have a suitable employer to provide a reference for you, consider asking a lecturer, teacher or department head. Nevertheless, you may also consider asking people you have met in a volunteer organization or other community activities that are related to the role you’re applying for.

3. Choose people who know you well

Try to use references who you have worked with recently. If you don’t want your current employer to know you’re looking for a new role, you may choose someone from a previous job. Effective references are written by people who know you well, so pick people with whom you get on well with and whom you can write a positive reference.

3. Look for positive signs from your potential referee

For instance, if you haven’t worked with your potential referee lately, send them a warm greeting and remind them what you intend to do together and what you’re currently working on. Send them a copy of your current resumes. If they seem hesitant, or if they take a long time to respond to you, give them the option of declining the invitation. Hence, if you detect that they are not very keen to be your referee, it’s best to move on to the next person on your list.

4. Think about how many guarantees you require

Most hiring managers request two guarantees, though some may ask for three. You may decide to ask a few additional people, in case a hiring manager asks for more. Some people may be your referee for several years, others might only be suitable when you’re applying for one particular job.  

Types of questions a hiring managers ask during a reference check.

Hiring managers may use the reference check as an opportunity to find out more about your work style, values, and attitudes. Some of the questions are similar to those they may ask you in an interview, but during a reference check, hiring managers ask these questions to your referees. This might include questions about:

. Your job performance and ability to carry out certain tasks.

. Also, your strengths and weaknesses

. And your work ethic and style of working

. Your job performance and ability to carry out certain tasks.

reference-check
An MD of a company conducting a reference with the newly employee

Why Do Organizations Conduct Reference Checks?

Organizations conduct reference checks for several reasons, some of which are:

 1. To verify information

Reference checks are used to verify the information provided by the candidate, such as employment history, job titles, and duties. This can help to ensure that the candidate is honest and transparent about their work history.

2. Evaluate performance

Reference checks allow organizations to evaluate a candidate’s past performance and work ethic. This information can be used to determine whether the candidate is a good fit for the organization and the position.

3. Identify potential issues

Reference checks can uncover potential issues with the candidate, such as a history of misconduct, poor performance, or a lack of relevant skills. This information can help the organization to make an informed hiring decision.
Reference checks can also reveal a history of fraudulent financial activities such as money laundering or terrorist financing which can pose serious threats to the organization if not discovered.

4. Mitigate risk

Conducting reference checks can help organizations mitigate the risk of hiring a candidate who may be a poor fit for the position or the organization. This can help to reduce turnover and other associated costs.

5. Legal compliance

In certain industries, reference checks are required by law or regulatory bodies to ensure compliance with legal and ethical standards. For example, the banking and finance industry is one whose legal and regulatory compliance requirements abound with penalties for default.

What Is The Reference Checks In The Banking And Finance Systems?

Reference checks in the banking and finance industry are particularly important due to the nature of the industry and the high level of trust and responsibility required for many roles. For instance, the following are some specific considerations for conducting reference checks in this industry:

 1. Compliance

The banking and finance industry is heavily regulated, and reference checks are often required to ensure compliance with industry regulations and legal requirements such as anti-money laundering regulations.

 2. Risk Management

Reference checks are an essential part of risk management in the banking and finance industry. However, financial institutions need to ensure that they are hiring candidates with a history of ethical behavior and integrity to reduce the risk of fraud, misconduct, and reputational damage.

3. Confidentiality

Confidentiality is a critical consideration in the banking and finance industry. Hence, reference checks should be conducted in a manner that protects the secrecy of the candidate and the organization, while still gathering the necessary information to make an informed hiring decision.

4.  Verification of Credentials

The banking and finance industry places a high value on education, certifications, and licenses. Therefore, reference checks should be used to verify the candidate’s credentials, such as degrees, licenses, and certifications, to ensure that they meet the organization’s requirements.

reference-check
An African America conducting reference check with a company manager

In Conclusion,

From all that has been discussed above, reference checks are an essential part of the hiring process (especially in the banking and finance industry) as they help organizations ensure compliance, manage risk, and hire candidates with the necessary skills and credentials for the role.

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