Our CEO in waiting has been incredibly busy recruiting, selecting and vetting members for his new executive team.

Apparently a Survey of Stakeholders – as reported on international TV a few weeks ago - when asked about their levels of confidence in our future CEO’s ability to make appointments: 43 % were “confident” and 32% “somewhat confident” about ability his ability to make appointments. That would mean that 25% weren’t confident, or didn’t know how they felt.

Well watching the thoroughness of the procedure that is being followed, it occurs to me that many small businesses would do well to follow this example.

Multinational and large organisations have trained managers and skilled professionals who conduct recruitment, selection and reference checking exercises. How many small businesses pay sufficient attention to each of these key elements of appointing new staff and how much more important is it for a small business, where one underperforming or unsuitable appointment can disrupt or demotivate the entire staff.

Reference checking – or Vetting – as it’s known in the States is critical. The definition of “vetting” from Answers.com says it all: “A thorough and diligent review of a prospective person or project prior to a hiring or investment decision”.

When is it appropriate to reference check?

• Once you are close to making a decision.
• Don't leave it too late, rather do preliminary checks on the best 2 or 3 applicants.

What factors should you check?

• As CVs are often downloaded from the internet, or prepared by friends or organisations, not by the job applicant, virtually all the details provided should be checked;
• the CV may not contain all the information you need;
• It's a very good practice to have a standard application form covering all the information you require and that is relevant to your business;
• ensure that all applicants fill in the Application Form and ask for Certificates of Qualifications to be attached.

What are examples of problems to look for?

• Do the dates of employment run consecutively or are there large gaps between the periods of employment? Find out what the applicant was doing during these periods.
• Are the reasons for leaving employment provided? Check these details with the applicant and confirm these reasons with the person providing the Reference.
• Are the details of the persons given for References correct? When telephoning check the name of the organisation, the full name and position of the person providing the reference.
• As a double-check, you may call back to the company and confirm with the telephonist the job title of the person who gave the reference.
• Is the person given for the reference the person who was the direct Supervisor or Manager of the applicant, or has someone else's name been given? Check with the applicant why this is.

What questions should be asked when taking a reference?

• Prepare a list of questions and record your answers with the date and details of the person giving the reference.
• Confirm details of the work done and qualifications.
• Ask about strengths and weaknesses, and general work performance.
• Confirm details of salary or wage, and if there were bonus or incentive payments, ask whether they were achieved. If not, ask what the circumstances were that they were not achieved.
• Ask about work habits, attendance and timekeeping patterns, and relationships with colleagues.
• Ask what the reason for leaving was and whether the person would be considered for re-employment.
• Cover any additional questions specifically relevant to your business or industry.
• Retain all notes and documents made and ensure that they are kept confidential.

If this all seems like too much trouble, consider the impact on your business if you have someone who doesn't have the knowledge and experience they told you at the interview they have, or has a track record of being dismissed for dishonesty or violence against fellow employees, clients or customers, or is habitually late or absent. The smaller the business and number of staff, the greater the percentage impact.

Until next week when we hope to have our future CEO's full new executive team.

---

Share this article