Check references only when you are very seriously considering a candidate. Using this screening device early in your hiring process is an imposition on the people giving the references. It may make it difficult for the candidate to keep a job search confidential and may be unnecessarily embarrassing if the candidate doesn’t get the job.

Make sure you check references thoroughly. Don’t rely on your instincts.

Prepare a list of questions to ask each reference.

Focus your questions on the key skills, abilities, and knowledge you need. This is also a chance to find out how the individual works with other people, whether they are honest, and whether their attitude is good.

Ask the questions that you really need answers to. References may not tell you unless you ask.

Ask for details about the applicant’s behaviour on the job. What did the applicant have to do in a given job task? What would be an example of the applicant’s attitude to work, to teamwork, to quality? What would be an example of a weakness?

Make sure that the references supervised the work of the applicant.

If you want to talk to people other than the references the applicant has given you, remember that job applications are made in confidence. Ask the applicant if there is any problem if you talk to other people. You may want more specific information about the applicant’s experience in a given area. Ask the applicant to provide you with the name of someone who can provide you with that information.

Most references want the best for the candidate, but they also want to be honest. Consider asking a question such as, "Are there any negative things about the applicant that I should know about?"

For some ideas of questions to ask references, check out HR Tool’s Sample Reference Check.