Current economic instability has put pressure on organizations to avoid raising fixed costs wherever possible. For talent acquisition leaders and hiring managers, this means there is little appetite for inefficiency and bad hires. To increase efficiency of their hiring process, organizations are beginning to invest in automated reference checks and other tools that reduce the legwork. However, just increasing the efficiency of hiring is not enough by itself to tackle the bigger problem of quality of hire.
Reference checking is no longer merely a way to validate past employment. Organizations can now use reference checking to:
Predict a candidate's performance.
Turn references themselves into a source of passive candidates in the future.
Gain honest feedback from references and limit the amount of guesswork in the hiring process.