Why do companies check references?

When you apply for a new job part of the application process is the need to provide references. You may wonder why a potential employer would need to check references if you have all the qualifications for the job. It may seem like an unnecessary step that only delays the process of filling the position, but in fact, it’s a positive sign that the company is considering making you an offer.

There are several reasons that hiring managers contact your references. The company is about to invest money in you that can potentially be lost if you’re not the right fit for the job. Believe it or not, new hires can cost the company thousands of dollars in staff time, insurance coverage and training. The hiring manager needs to ensure that they are making the right decision in offering you a position with the company.

One way to do that is to speak with your references. If a candidate is unable or unwilling to submit references, then that’s a sign to human resources not to move forward with the application. Potential employers want to hear from your references about what kind of team player you are, how often you were absent and how well you got along with other employees. It’s one way to understand whether you’ll fit in with the corporate culture, and how you will contribute to the team.

Speaking with references is also a great way to verify whether your resume is accurate. Job seekers tend to make their roles sound like they handled more responsibility or have highly technical knowledge in a subject area. If the position you’ve applied to has specific skill requirements, then the hiring manager needs to know that you are proficient in those areas. If the answer is yes, then they will be confident in extending an offer to you.