References checks still in vogue for assessing new recruits: Survey

In the digital age, companies are increasingly adopting artificial intelligence to improve the recruitment process, but a significant percentage of HR managers still support the age-old practice of reference checks while hiring mid and senior level professionals, says a survey.

According to a survey by multi-national recruitment firm Antal International, that covered 200 HR Managers and senior line managers, 93 per cent respondents strongly support the practice of reference checks.

Most respondents believe speaking to previous employers and colleagues gives insights on the candidate's work ethics, personality and social skills.

"Reference checks are a vital part of the hiring process that help in making the right decision while hiring. The average costs of a bad hire may equal 30 per cent of the first year's potential earnings and reference check can help avoid companies avoid this hiring blunder," the survey said.

The survey noted that 78.2 per cent of companies conduct reference checks as part of their hiring program, to ensure that they hire the right candidate, while 58 per cent respondents said they would not roll out the offer without completing the reference check of a candidate.

Around 68.5 per cent respondents said they won't hire a candidate whose reference check was not up to the expectation.

For the 31.5 per cent respondents who would still go ahead and offer the job to the candidate, it could be at a lower compensation, or at a lower title than previously discussed, or may offer lesser scope of work than previously discussed and it could also mean a decline in fix compensation and an increase in the variable component, it added.

"These insights give hiring managers the best opportunity to gauge what that person will be like in a work environment. Inspite of technology taking over hiring processes, hiring managers still rely on this traditional method while making hiring decisions for their businesses," the survey said.