Reference Checking

8/7/2019 Reference Checking

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REFERENCE

CHECKING

PRESENTED BY: GROUP 6

VINAY KUMAR REDDY K

SIZZIL ISLAM

CHOUDHURY

VINEET SHASHIDHARAN

NARESH KUMAR N

ABHISHEK KUMAR



REFERENCE CHECKING

One of the fastest-changing, most misunderstood issues in

human resource management is reference checking. A reference

check is not a fishing expedition or idle gossip, but a structured

and important pat of the hiring process.

Checking references is the last step of a hiring process designed

to help you identify the candidate who will be the most

competent for a specific role and within the organization as a

whole.



WHY CHECK REFERENCE?

Avoid cost of wrong hires.

Various reports issued by consultancy companies indicate that

at a minimum, 25% of candidates submit false or inaccurate

resumes. Improve assessment of the training and experience.

Demonstrate fairness and equal treatment.

Send a message about organization¶s values.

The pre-employment background screening process also helps

in complying with some of the country and industry specific

regulations and laws.



WHY EMPLOYER ¶S DO NOT CHECK

REFERENCES?

Lack of time

Trusted referral

Not for certain types of employee

R edundant assessment

Fear of badness

Fear of legal consequences



WR ONG-HIRES

Apart from attrition and non-availability of skilled manpower,

one of the major problems the IT and ITeS (IT enabled Service)

companies are facing is the presence of wrong hires on the

rolls.

³Wrong hires are those who creep into a company by either

using a fake qualification certificate or a fabricated experience

certificate and go on to handle a process in which they pretend

to be having enough skill.´



Contd......

It is estimated that the company's spend about R s 25,000 to R s

40,000 per candidate for hiring. This includes the consultancy

fee, advertisement costs for recruitment and the resources spent

on screening.

However, the cost of a wrong hire is said to be significantly more

than actual hiring cost. One of the common ways of a wrong

candidate getting into a company is by using fake certificates.



EXAMPLES OF INCORRECT HIRE

A financial crime group based in London implanted an employee

in the outsourcing unit of the bank in India in the call centre

process. The employee provided critical customer information by

accessing the database to the financial crime group. The group

conducted account takeover frauds in London for over $500,000

in a span of two months. The employee had submitted false

employment records which could have been detected at the time

of hiring.



Contd......

An employee joined an organization which relied on theeducation and employment checks done by the previous

employer. The employee had falsified the information with the

previous employer which had remained undetected. Subsequently,

the employee was suspected to be involved in terrorist activities.

An organization outsourced the transport of its employees to a

vendor. A cab driver with previous history of sexual assault was

hired without verification for commuting female employees at

night. The cab driver raped one female employee when she was

alone in his cab.



One of the dreaded tasks of professionals who make hiring decisions is

REFERENCE CHECKING. Some of the reasons that the task of reference checking has such a bad reputation are that the employee

responsible does not:

K now

what

information

to

obtain

on

candidates.

K now what questions to ask sources once contact is made.

K now what to do with some of the information once it is received.

H

ave

the

time

to

verify

all

the

information

that

should

be

verified.Have access to, or the money for, the resources necessary to

complete thorough background checks.





Exceptions

Some organizations have a company policy that prevents their

employees from providing references; instead, they are only

able to verify employment, including dates of employment and

title. Don¶t judge the candidate because his or her former

employer has this policy; it does not mean that the candidate

was not successful so go for another check. Many employers

like to include ³back-door reference checks´ in their process,

which means that they call people known to them who may have

experience with the candidate but have not been listed by the

candidate as a reference.

Documents

Reference Checking