Reference checks in recruiting: Best practices for HR teams

Reference checks are one of the oldest and at the same time one of the most underrated tools in recruiting. When done properly, they provide insights that no resume and no interview can give: How does the candidate really work? How do they behave under pressure? Would the former employer hire them again?

Why reference checks matter

Studies show: Up to 40% of all résumés contain inaccuracies — from embellished job titles to invented degrees. A structured reference check uncovers such discrepancies and gives you a realistic picture of the candidate.

At the same time, the reference check signals professionalism: candidates know that you review thoroughly. That deters dishonest applicants and attracts the right talent. This signaling effect is also a key argument for why background checks are part of good HR work.

Common mistakes in reference checks

1. Only contacting references suggested by the candidate: These are naturally positively biased. Ask about supervisors too, not just colleagues

2. Unstructured conversations: Without prepared questions, you only get superficial answers. Use a standardized questionnaire

3. Too late in the process: Many HR teams only request references shortly before signing the contract. This creates time pressure and prevents genuine freedom to decide. This is exactly when the candidate experience at this stage is crucial

4. Legal uncertainty: What am I allowed to ask? What am I not? Many HR teams avoid reference checks altogether out of fear of GDPR violations

Asking the right questions

Good reference questions are behavior-based and specific:

• In what role did you work with the candidate?

• How would you describe the quality of work and reliability?

• How did the candidate handle conflicts or deadlines?

• Would you hire the candidate again? Why or why not?

Automated reference checks with Indicium

Indicium digitizes the reference check process:

• Digital questionnaire: Reference contacts answer structured questions online — no need to schedule phone calls

• GDPR-compliant: Consent management integrated, data stored in the EU

• Standardized: Same questions for all candidates — comparable results

• Combines well: Reference check as part of a comprehensive background check with identity, qualification and sanctions list screening

Read more — related articles

• Background Check: What is it and what is allowed?

• GDPR and Background Checks: Employer Guide DE/CH

• Background Check in Germany 2026

• Background Check Costs and Pricing

• Pre-Employment Costs: Manual vs. Automated