Reference Checks: How to Do Them Properly

A reference check is your last chance to learn how a candidate actually works before you make an offer. Done well, it takes about 20 minutes a call and can confirm a great hire or raise a question you would rather answer now than in three months. Here is how to do reference checks properly, fairly and in a way that gets you honest answers.

A woman sitting at a computer and talking on a phone, taking notes during a call — A short, well-prepared phone call often tells you more than a written reference.

Key takeaways

Get the candidate's permission before contacting anyone, and tell them who you plan to call.
Prepare 6 to 8 questions tied to the actual job, and ask every reference for the same candidate the same core questions.
Ask for examples and behavior, not opinions on personality or anything about protected characteristics.
Many employers only confirm dates and job titles. Treat that as normal, not as a warning sign.
Write notes during the call, store them securely and use them alongside interviews, not instead of them.

Interviews show you how someone talks about their work. References show you how others experienced it. For a small business, where one hire can change the feel of the whole team, that second view is valuable. Yet many owners skip reference checks, or rush through a two-minute call that only confirms the candidate "was fine".

If you are hiring after the new year, as many small businesses do in January, building a simple reference process now will pay off for every hire this year. This guide covers when to check references, how to set them up, what to ask, how to read the answers and how to stay fair and compliant.

A quick note: this article is general information, not legal or employment advice. Rules on references, data protection and background checks vary by country and US state. Check official guidance and talk to an employment lawyer or HR professional about your own situation.

When to check references in your hiring process

Reference checks work best near the end of the process, once you have narrowed the field to one or two finalists. Checking earlier wastes everyone's time and may put a candidate's current job at risk if their employer finds out they are looking.

After final interviews. You know enough about the candidate to ask focused questions.
Before or alongside a conditional offer. Some businesses make an offer "subject to satisfactory references". If you do this, say so clearly in writing.
Never without permission. Contacting a current employer behind a candidate's back can damage trust and their livelihood.

Pro tip

Tell candidates at the start of the process that you check references for finalists. People who know it is coming tend to give you better references, and the step never feels like a surprise.

Set up reference checks the right way

A little preparation makes each call shorter and more useful. Follow these steps for every finalist.

Ask for consent in writing. A simple email or a line in your application form works. Note which references the candidate agreed you can contact.
Ask for the right people. Request two or three references, ideally including a recent direct manager. Peers, clients or people they managed can add a useful angle for some roles.
Get context from the candidate. Ask how they worked with each reference and what projects they shared. This helps you ask sharper questions.
Email first to book a time. A short message explaining who you are, the role and how long the call will take gets better responses than a cold call.
Prepare your questions. Use the same core questions for every reference for the same candidate so you can compare fairly.
Block time to write up notes. Five minutes straight after the call, while it is fresh.

Phone, video or written?

Written references and online forms are quick and leave a clear record, but they often produce careful, general answers. A phone or video call lets you hear tone, ask follow-ups and build enough rapport for honest examples. Many small businesses use a short form for basic facts and a call for the real conversation.

Questions that get honest, useful answers

Good reference questions are specific, job-related and invite examples. Avoid yes or no questions where you can, and never ask about anything unrelated to the job.

Questions to confirm the basics

How do you know the candidate, and for how long did you work together?
What was their role, and what were their main responsibilities?

Questions about performance and behavior

What were they especially good at? Can you give me an example?
Where did they need the most support or development?
How did they handle a busy period or a mistake?
How did they work with teammates and customers?
This role involves [key task]. How do you think they would handle that?

The closing question

If you had the chance, would you work with or hire them again? Why?

Listen to the way people answer as much as the words. Warm, quick, detailed answers usually mean strong support. Long pauses, very short replies or carefully neutral language can be worth a gentle follow-up such as "Could you tell me a bit more about that?"

Common mistake

Asking questions that stray into personal territory, such as health, family plans, age, religion or similar topics. These are not relevant to whether someone can do the job, and asking about them can expose you to discrimination claims under laws like the Equality Act 2010 in the UK and federal and state anti-discrimination laws in the US. Keep every question tied to work and behavior on the job.

A woman in a white shirt holding a phone to her ear while having a conversation — Friendly, specific questions help references relax and share real examples.

A reference check call template

Copy this table into a document or spreadsheet and fill in one per reference. The answers below are made-up examples for a candidate applying to be an office coordinator.

Question	Reference answer (example)	Follow-up or note	Fit with role
How did you work together?	Direct manager for 2 years at a dental practice	Confirmed dates match CV	Strong
What were they especially good at?	Scheduling, calm with upset patients, kept the diary full	Example: rebooked a whole day after a power cut	Strong
Where did they need support?	Slow with spreadsheets at first, improved after training	Our role is spreadsheet-heavy; plan training	Moderate
Would you hire them again?	Yes, without hesitation	Answer was quick and warm	Strong

Add a final row for your overall summary in two or three sentences. Keep notes factual and professional, written as if the candidate might one day read them, because under data protection laws they sometimes can.

Reading the answers fairly

A reference is one data point. Use it to confirm or challenge what you learned in interviews, not as the only basis for your decision.

Look for patterns. One lukewarm comment is not a red flag. The same concern from two references is worth exploring.
Expect limited references. Many larger employers have a policy of only confirming dates of employment and job title. That is a company rule, not a comment on the candidate.
Consider context. Someone who struggled in a chaotic environment may thrive in a calmer, well-organized small business, and the reverse can also be true.
Talk to the candidate. If a concern comes up, it is often fair to ask the candidate about it. Their explanation can be revealing.

Red flags worth taking seriously

Job titles, dates or responsibilities that clearly do not match what the candidate told you.
A reference who seems to be a friend posing as a manager, or contact details that do not link to the company.
Several references describing the same serious problem, such as reliability or honesty.
A candidate who strongly resists giving any professional reference at all, without a reasonable explanation.

Hypothetical example

Elena, who runs a small bookkeeping practice, was choosing between two finalists. Both interviewed well. One candidate's former manager confirmed only dates and title, citing company policy, and a former colleague gave detailed, positive examples of careful work under deadline pressure. The other candidate's references were friendly but vague, and one mentioned missed deadlines twice. Elena asked the second candidate about it. Their answer was honest but showed the issue was recent. She hired the first candidate and wrote down why, so the decision was clear and consistent.

Stay fair, consistent and compliant

Reference checks involve personal information about candidates and the people giving references, so a few ground rules protect everyone.

Be consistent. Check references for every finalist at the same stage, using the same core questions.
Respect data protection rules. Under GDPR in the EU and UK GDPR in the UK, reference notes are personal data. Collect only what you need, store notes securely and set a sensible retention period. Some US states also have privacy laws, so check what applies to you.
Separate references from background checks. Criminal record checks, credit checks and checks through third-party screening companies have their own rules on consent and disclosure. In the UK, people working with children usually need a DBS check. In the US, background check rules vary by state, so check the official guidance before using one.
Keep your own references careful too. When a former employee asks you for a reference, stick to facts you can support. Many businesses limit themselves to dates and titles for this reason. Get advice if you are unsure.

Your reference check checklist

Tell candidates early that you check references for finalists
Get written consent and a list of approved contacts
Ask for 2 or 3 references, including a recent manager where possible
Email references to book a short call and explain the role
Prepare 6 to 8 job-related questions and use them consistently
Ask for examples, and follow up gently on vague answers
Avoid any questions about personal or protected characteristics
Write factual notes straight after each call and store them securely
Compare patterns across references and interviews before deciding
Delete reference notes when your retention period ends

Frequently asked questions

How many references should I check?

Two or three is usually enough for a small business role. At least one should be someone who managed the candidate directly, if possible. More references rarely add much beyond that.

What if a reference will only confirm dates and job title?

That is common and usually reflects company policy. Thank them, note the confirmed facts and ask the candidate if there is another person, such as a former team lead or client, who could speak about their work.

Can I contact people the candidate did not list?

It is safest not to without the candidate's agreement. Informal back-channel checks can be unfair, can put someone's current job at risk and may raise data protection concerns. Ask the candidate first.

Can I withdraw an offer after a bad reference?

If your offer was clearly conditional on satisfactory references, you may be able to, but the rules depend on where you are and what you put in writing. Get advice from an employment professional before withdrawing an offer.

The bottom line

Reference checks done properly are short, structured and fair. Ask permission, call the right people, use the same job-related questions, listen for examples and patterns, and keep careful notes. Treat what you hear as one important piece of the picture, alongside interviews and any work samples.

Save the template, write your core questions once and reuse them for every hire this year. A calm 20-minute call can give you the confidence to make a great offer, or the information you need to pause before making a costly mistake.