Today’s economic environment leaves no room for risk-taking in the talent-acquisition process.  Employers simply cannot afford the costs of re-hiring (estimated to be 2 to 3 times the annual salary of the position).  Conducting limited, perfunctory background checks (e.g., criminal records) is insufficient due diligence for employers, because even in cases of embezzlement, many cases are never pursued through the legal system.  The losses that result from hiring employees without the benefit of checking their references are realized at every level of the organization—from outright employee theft to lost productivity and damaged employee morale and engagement.   Checking references must no longer be limited to senior level positions.

Because employee loyalty is at an all-time low, employers must hire people who stand a greater chance of fully engaging with the organization’s values, style, and strategies.  Will that frontline supervisor be able to effectively deal with the pressures of his/her job?  Will s/he be able to interact with the entry-level staff as well as his/her superiors?  Does s/he have the courage that your organization and the position requires?  History and past performance are still considered strong indicators of future performance, and it is only through a thorough and robust reference-checking process than an employer can gain insight into the critical aspects of what a candidate will bring to their organization.

The thought that references won’t talk is a myth.  When the right reference is contacted, and credibility is quickly established, references will participate in a conversation.  Interviewing references effectively is an art that is supported by clear processes.

Tips to Effective Reference Checks:

1. Maintain control over the references that are called.  YOU—the employer, not the candidate—determines who will be called.  Ask each candidate to provide information for his/her last supervisor or manager at each prior position, as well as their current contact information.  Today’s research tools make it possible for candidates who really want to work for you to locate these individuals.
2. Request email addresses for the references so the conversation can be scheduled in advance and the reference can allow ample time.  (At RefCheck^® it’s not uncommon to spend 20 to 45 minutes with a reference.)
3. Assign the reference-checking process to professional-level staff, so the reference can be engaged in a true conversation.  Particularly at the senior levels, references want to speak with their equals.
4. Do not adhere to a rigid Q&A format, which leads to limited responses.
5. Thoroughly document the conversation. Take notes as the conversation takes place and review the notes for completion at the conclusion.

Ms. Corkerton can be reached at:

P: 614-777-8844, ext. 12

E: zcorkerton@refcheck.com

For anyone not tuned in, MLB umpire, Jim Joyce mistakenly called a 1^st base runner safe in the 9^th inning of the game, costing Detroit pitcher, Galarraga a perfect game. For the benefit of non-fans of the game, a perfect game is a really big deal. There have been only twenty such games recorded in the entire history of major league baseball, and by all rights, Mr. Galarraga earned, but didn’t get credit for the 21^st.

Granted, Galarraga’s coach and several teammates expressed their displeasure in no uncertain terms, but from all appearances, Galarraga remained calm and professional. Apart from the error, Joyce demonstrated why he has long been considered one of baseball’s finest umpires. Immediately after the game he reviewed the video, publicly admitted his error, and sought out Galarraga to apologize.  My guess is that he didn’t wait to consult his lawyer, league officials, announcers, or game sponsors. Nor did he wait to be prodded. He didn’t have to be waterboarded to cough up the truth.

My hope is that this can serve as a lesson for the rest of us. We live and work in a world where everything and everyone is moving at a high rate of speed. Occasionally we drop balls that should have been caught, or like Joyce, make a bad call. One thing (no, the only thing) that will keep people from slowing down is the belief that, when an error is made, rather than immediately bayonetting the wounded, cooler heads will prevail, and some adult behavior will emerge.

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A thought leader in the arena of leadership and employee engagement, Bill Catlette is a seminar leader, keynote speaker, and executive coach. He helps individuals and organizations improve business outcomes by having a focused, engaged, capably led workforce. For more information about Bill, his partner Richard Hadden, and their work, please visit their website at www.contentedcows.com, or follow him on Twitter at http://twitter.com/ContentedCows

What to do: When you see good performance, reward it. Then and there. Start with “Thank You.” Then, find a way, and a big enough way to get the person’s attention. Rather than adding to fixed payroll expense, consider gifting an award trip, extra time off, or some other gift that really means something to the individual. Worry less about being consistent than sending a message that excellence is meaningfully rewarded.

Pocket pain: Specifically, health care. Concurrent with less-than-exciting (or nonexistent) pay increases, U.S. workers are paying more for health care, owing to a non-system that has seen costs more than double over the last decade. Employers who offer health care benefits have no choice but share the increasing cost. While currently proposed legislation solves some of the problems, it does little for the biggest problem – controlling costs. Take that, plus the increasing number of workers who have no health care benefits at work, and you’ve got a workforce paying higher premiums, higher out of pocket costs, no realistic solutions on the horizon, AND the increased worry that accompanies having no safety net. Yikes.

What to do: Turn off the TV! Get the facts. Read, starting with Regina Herzlinger’s Who Killed Healthcare?. Discuss the matter with your own physician. Consider establishing, along with like-minded neighboring employers, a private or co-op clinic, as organizations like SAS and the Pebble Beach Company have done. Heavily incent workers, using both positive and negative consequences, to better manage their health. Advocate forcefully for better public policy.

Diminished employment options: The recession, paired with the continued unbundling (and offshoring) of work have drastically reduced the number and scope of available jobs. Moreover, any stigmas or pangs of guilt on the part of management associated with reducing “heads” in the workplace have disappeared. Witness simultaneous announcements by United Parcel Service last month that the company was, 1) increasing earnings guidance due to favorable business conditions, and 2) Doing a restructuring that would eliminate nearly 2,000 jobs. People who once were assured that, even if they didn’t like their current job, could quickly find another now aren’t as comforted by their options.

What to do: Tune in. Let your people know where they stand and how the business is doing – truthfully and regularly. If you’re through making cuts, say so. Monitor and nurture your employment brand as carefully as you do your cash. That may also mean managing people out of the organization (with consideration and decency) who have unplugged and are merely hanging on because they don’t see any options.

The dumbing down of the workplace: The first shoe to drop whenever earnings take a hit, or the economy contracts, falls on the organization’s training budget. We are now in the 3rd year of greatly diminished funding, to include training for managers. To wit, people now find themselves in the unenviable position of working for (and with) less skilled managers. Not a happy thought.

What to do: Take this opportunity to get the jump on your competition. Begin selectively restarting your development activities, with a careful eye for the real priorities. If you can’t yet afford systemic efforts, fund development initiatives (i.e., executive coaching) for worthy staff. Incent workers (using time off or a skill acquisition bonus) to invest in their own development plans, rather than just “taking whatever comes from corporate”.

One last thought – and pardon what sounds like a negative tone here: Dissatisfaction isn’t confined to the workplace. The decade of the 00’s is one that most people in the U.S., if not elsewhere, were glad to put in the rear view mirror. We think it’s safe to say that many (if not most) of us feel less well off, less secure, and yes, less satisfied than at any time in our lives. To think that these feelings don’t make their way into the workplace is delusional.

That said, maybe it’s time to “reboot” this whole idea of leadership and motivation in the workplace. Not to throw it out, but to “reload the program”, under a new set of conditions, a new reality, for a new and better future. It is for that reason that together with our friend and colleague, Meredith Kimbell, we have been working for the better part of a year on a new book, Rebooting Leadership, due for publication in May of this year. Watch this space for more.

Meanwhile, buck up, and Godspeed!