Be honest: How many times have you, as a prospective employer, sought employment references from an individual’s ex-employer and either not received a reply or, more often than not, received a reference which contains no meaningful information about the individual concerned?
It’s true that a job reference can prove useful for verifying that a candidate was employed for a specified period, and that’s great for proving they were telling the truth (although, if you were in any doubt of that then they really aren’t the right employee for you anyway). That said, you are unlikely any kind of insider knowledge on what the candidate was like as an employee – their sickness record, their performance, their attitude – all the things that you really want and need to know. These types of references typically come from risk averse employers who will more than likely have a policy in place of giving ‘standard’ references which can be less than helpful!
The ‘Standard’ Reference Is Now ‘Standard’
In my opinion standard references are indicative of the compensation culture in which we now live and the fear this generates amongst employers.
If you receive a standard reference, you could still make further enquiries with the ex-employer. You could certainly contact the referee by telephone to see if you can elicit any further information from them beyond the written reference. Occasionally, the referee will not be able to resist the urge to be candid, possibly on the basis that they believe that there are unlikely to be any consequences given their comments are not in writing.
However, if the ex-employer refuses to provide any further information beyond the standard reference, then there is very little that you can do about it. After all there is no legal obligation for employers to provide any meaningful information about an ex-employee and, as a general rule, no obligation to provide a reference at all.
There will usually be a disclaimer at the bottom of the reference saying that no reliance can be placed on it, but this raises the separate question as to how any prospective employer can rely on a reference that actually, in reality, tells you very little.
So Why Bother Asking For Them In The First Place?
Not all companies are the same and some (although in my experience few) will provide you with a more in depth, meaningful reference.
Ironically, as more detailed references are so rare these days, when a positive one is issued, it can often cause you to question how the individual has been able to obtain such a glowing praise in circumstances where most employers are only prepared to issue the standard garb. Indeed, sometimes employees will negotiate a positive reference as part of a settlement, so there may be good reason to be suspicious!
Bad News For Small Businesses
None of this is good news for small businesses. Fledgling teams at the early stages of business growth need top performers. Without quality reference information, you are at the mercy of those job applicants who attempt to enhance their chances of obtaining a job offer by distorting their education, training and work history information.
To get round the problems of obtaining a quality reference, you should:
- Ask the chosen candidate for the names of the people who supervised them most closely in at least their last two positions and ask them for permission to approach these people for a reference. (The reaction of the candidate to such a request is often interesting).
- Don’t ask the referees for an open-ended (blank sheet) reference. You stand a better chance of getting one if you send them a simple form to complete.
- Structure your enquiry around the competencies required in the job you propose to offer the applicant
- Use a six point numerical scale (an even number avoids middle choices) with the two extreme points
- If taking the reference by phone, listen to the specific word choices and the tone and enthusiasm with which the reference describes the candidate. Shifts in tone, long pauses, or hesitations might indicate that you’ve hit a sensitive or troublesome subject. Also keep an ear out for overly enthusiastic references without sufficient depth of examples to back up the praise.
Giving References
If you give a reference, you have a duty to take reasonable care to ensure it is true, accurate and fair and that it is not misleading. If you provide a bad reference that you can’t substantiate, you run the risk of your employee suing you for damages if they didn’t get the job. In a worst case scenario (which HR will always provide you with!), they could even bring an action against you for defamation or discrimination.
If an employee’s performance has been poor or they were fired you can disclose this to a future employer but you must, refer specifically to the problems experienced and don’t elaborate with your own personal views.
Top Tips When Giving References
1. A Bad Reference Is Permissible: Provided that a reference is not malicious and that you took reasonable care to ensure that the information is true (e.g. by investigating any matter giving rise to the bad reference) you can provide an ex-employee with a ‘bad’ reference. If an employee has been dismissed, ensure that the statements made in the reference tally with the reasons given for the dismissal. If the employee is senior enough, agreeing the wording of their reference with them may be part of an agreement in settlement of their claims, leading to them ‘going quietly’.
2. Avoid Inconsistency: You should be consistent when providing references, giving a reference in one case and not another, or giving only a factual reference to one employee and a full reference to another could lead you to discrimination claims.
3. Have A Policy: Have a clear written policy setting out who is authorised to give a reference and the form that it will take. It should also set out circumstances in which a reference may be refused or where you are prepared to deviate from the written policy.
4. Keep To The Facts: Limit references to issues of fact. Many employers provide references that simply give dates of employment and job titles. If you choose this option then you should make it clear to the new employer that you are only prepared to provide limited information.
5. Amend If Needs Be: If a reference is given as part of a settlement agreement, reserve the right to refuse a reference or to amend it if matters come to light that would render it misleading.
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Photo Credit: Drafting by Wiertz Sebastien
