{"id":511220,"date":"2025-08-25T12:54:44","date_gmt":"2025-08-25T07:24:44","guid":{"rendered":"https:\/\/in.springverify.com\/blog\/?p=511220"},"modified":"2025-09-09T14:21:25","modified_gmt":"2025-09-09T08:51:25","slug":"employment-reference-check","status":"publish","type":"post","link":"https:\/\/blog.in.springverify.com\/employment-reference-check\/","title":{"rendered":"5 Reasons Why Employment Reference Check is Important"},"content":{"rendered":"\n

So you shortlisted the perfect applicant for the job. The qualifications are just right, the monetary compensation makes you feel like you are made for each other, and you are tempted to rush through the hiring process, but wait! Did you follow the due diligence and perform an employment reference check?<\/p>\n\n\n\n

According to the PBSA<\/a>, almost 93% of employers include national criminal database searches in their background screenings. But that doesn\u2019t suffice!<\/p>\n\n\n\n

It is crucial to perform a pre-employment reference check<\/a> that includes contacting the applicant\u2019s references to uphold their educational background, employment history<\/a>, and other necessary information vital to the offered position.<\/p>\n\n\n\n

If you still feel that an in-depth employment reference check simply fritters away time, we have rounded up some fundamental reasons to convince you otherwise.<\/p>\n\n\n\n

5 top reasons to perform employment reference checks in the selection process<\/strong><\/h2>\n\n\n\n

1. Employees\u2019 and customers\u2019 protection<\/strong><\/h3>\n\n\n\n

A PBSA survey<\/a> in 2020 indicated that 83% of employees considered reference verification primarily for the safety of the organization\u2019s employees and customers.
<\/p>\n\n\n\n

Consider this example<\/a>, for instance. The long and short of the case is that The Kirby Company hired an applicant without conducting a proper professional reference check (explicitly pointed out during the hearing). Later, in 2013, the company\u2019s female employees filed a lawsuit against the same employee in court for sexual assault and verbal abuse.

Thus, overlooking one aspect in hiring can affect the safety quotient of the entire organization.<\/p>\n\n\n\n

2. Know your applicant<\/strong><\/h3>\n\n\n\n

References help transcend the employment verification and know the candidate\u2019s working style, performance, strengths, qualifications, and more from another experienced manager to better judge if they are the right fit for your organization.<\/p>\n\n\n\n

This approach helps you assess the applicant\u2019s potential and, in turn, increase the quality of new hires.<\/a><\/p>\n\n\n\n

3. Prevent negligent hiring lawsuit<\/strong><\/h3>\n\n\n\n

As the name suggests, negligent hiring refers to the employer\u2019s failure to investigate an employee before hiring. In which case, the employers are liable for the things they know and should have known about the employee. <\/p>\n\n\n\n

The courts have repeatedly emphasized the employer\u2019s duty for careful hiring, especially in the workplace that poses a threat to the public.<\/p>\n\n\n\n

This classic case<\/a>, in which the jury passed the $1,000,000 in favor of the injured party, stands as an example and reiterates why the reference check process is indispensable. Moreover, running these checks works in your favor in such cases.<\/p>\n\n\n\n

4. Avoid losses<\/strong><\/h3>\n\n\n\n

You may feel that you are shelling out money for nothing during background checks, but it is quite the contrary.

Whether it\u2019s the case of negligent hiring lawsuits or hiring the wrong person, you will be losing plenty in comparison to following due diligence with our reference checking service<\/a> help. Moreover, it will also ensure a positive work environment, thus boosting the morale of all.<\/p>\n\n\n\n

5. Avoid bad publicity<\/strong><\/h3>\n\n\n\n

P.T. Barnum, a showman, and politician said, \u201cThere’s no such thing as bad publicity.\u201d This doesn\u2019t stand true in a corporate culture!<\/p>\n\n\n\n

Bad incidents can have a lasting impact on an organization. Your employees are going to be your company\u2019s face. Hence, hire the ones that you find worthy of your brand.<\/p>\n\n\n\n

What should employers know before conducting reference checks?<\/strong><\/h2>\n\n\n\n

A CBS News report<\/a> says that the big organizations and reference check companies have spent over $325 million in the last decade to settle background checks-related litigation. Thus, it is essential to understand your obligations.<\/p>\n\n\n\n

It is required by the law<\/a> for an employer to obtain the applicant\u2019s permission before conducting the reference check, whether it is to examine credit reports or talk to a third party.<\/p>\n\n\n\n

Additionally, an employer mustn\u2019t discriminate against the candidate based on his\/her race, color, disability, national origin, sex, religion, genetic information, and age.<\/p>\n\n\n\n

At SpringWorks, we have developed an online reference checking service<\/a> named <\/em><\/strong>SpringVerify<\/strong><\/em> that removes the hassle from the process and makes it a breeze. It gives you a complete report on the applicant by merely adding his or her basic information, which takes less than a minute.<\/em><\/strong><\/p>\n\n\n\n

As expected from excellent reference check software, SpringVerify is:<\/p>\n\n\n\n