By Rhonda Houser, PHR / Northwest Arkansas Human Resources Association (NOARK)

It’s unfortunate, but most employers face this situation sooner or later. That is, terminating an employee because of poor performance, inappropriate behavior or the disregard of policy and work rules.  Sometimes this behavior is completely unanticipated, an unpleasant surprise. Oftentimes it is proof that forewarned is forearmed. In most cases, had a reference check been conducted it’s likely the situation would have been avoided altogether.

The most often heard complaint ­– especially from small business employers – is that reference checking is a waste of time because of two primary obstacles. For one, some organizations have policies that prohibit managers from giving references when asked.  Two, it’s common for candidates to only list references they feel certain will give glowing reports.

Yes, these challenges do exist.  Yet, reference checks are a critical component in the selection process. How can you overcome the issues to gain the benefit?

• Step One: Ensure you are in compliance with the law.  Take time to read and understand the law in its entirety.

• Step Two: Create a consent form as a part of your application process.

• Step Three: Personally contact the reference and ask verifiable job-related questions. Prepare ahead with open-ended questions that solicit information and give you the opportunity to clarify comments and issues that arise.

• Step Four: Take good notes of the reference’s comments.

Arkansas employers have gained ground in obtaining and providing reference checks as long as they follow the outlined steps of the law.  AR statue 11-3-204 states:  “A current or former employer may disclose the following information about a current or former employee’s employment history to a prospective employer of the current or former employee upon receipt of written consent from the current or former employee. “

Further, “The current or former employer disclosing such information shall be presumed to be acting in good faith and shall be immune from civil liability for the disclosure or any consequences of such disclosure unless the presumption of good faith is rebutted upon a showing by a preponderance of the evidence that the information disclosed by the current or former employer was false, and the current or former employer had knowledge of its falsity or acted with malice or reckless disregard for the truth.“

In conducting investigations for companies, I have found often that had they conducted a reference check, they would have never hired the employee they are now wishing to fire.  Once again, that old saying rings true: “an ounce of prevention is worth a pound of cure.”

Rhonda Houser, PHR is President of Northwest Arkansas Human Resources Association (NOARK) and Human Resources Manager for Crystal Bridges Museum of American Art.  Send inquiries to info@noark.org or visit http://www.noark.org.