Human Assets

 

 

Human Assets has recently completed a high profile project with the Bar Council and Law Society to re-design the Queen's Counsel appointment process. A key part of this was to design a structured reference checking procedure. The references are to provide valid and reliable information about whether existing Barristers and Solicitors applying for the title have attained the standard of excellence as advocates that is required for the award of Queen's Counsel. The reference-taking process ensures that referees' evidence is checked. It is based around a tailor-made competency-based reference form and involves structured telephone and face-to-face 'interviews' with referees.

 

As a firm of Business Psychologists, we combine extensive practical experience with cutting-edge research to provide tailored solutions across a wide range of Human Resources issues. Our work with the Bar Council and Law Society has married the practical demands of these professional bodies with current theoretical research to produce a tailored, workable solution. This month's newsletter highlights the research behind structured reference checking processes and how Human Assets can help design effective, reliable and valid reference checking procedures.

 

 

In the field of selection and assessment, the gulf between scientific research into the validity of references and the continued practical application of such methods in organisations is wide. References can play a significant role in making selection decisions and are one of the more widely used approaches in staff selection systems. However, despite the widespread use of references in selection procedures, very little psychological research has attempted to assess the incremental value added by such procedures. A recent article by Paul Taylor from the Department of Psychology, Chinese University of Hong Kong, attempts to redress this imbalance.

 

When giving reference information, most organisations tend to provide only the most basic information (length of tenure and position held at end of employment). An increase in litigious actions brought against organisations by former employees for alleged defamatory reference information has led to a drastic decrease in information available to new employers. With such limited information at the employer's disposal, unstructured references tend to have low predictive validity (Note: 'Predictive validity' in this instance refers to the degree to which an organisation can be confident that a positive reference will relate to effective job performance).

 

However, Taylor et al report that reference checking, when properly structured, can a) avoid defamation litigation and b) add significant value to recruitment processes, increasing an organisation's confidence in selection decisions. Indeed, Taylor et al postulated that utilising a structured, competency-based approach to reference checking can increase predictive validity ratings in much the same way as structuring the interview process.

 

Similar to our work with the Bar Council and Law Society, Taylor et al used a structured job analysis to identify the core job-related personal & interpersonal qualities (competencies) deemed essential to effective performance in a family of customer-contact jobs within a 10,000-employee service organisation. These competencies ('Commitment', 'Teamwork' & 'Customer Service') were incorporated into a structured reference form and referees were asked to rate the applicant on a number of behavioural indicators within each competency. A structured telephone 'interview' with referees was then used to obtain evidence of actual occurrences to support the ratings.

 

Taylor et al demonstrated that using a structured telephone reference check, allowing a dynamic, two-way exchange of information, increased predictive validity of future job performance. Results also indicated that referees were able to effectively discriminate between the competencies of 'Commitment', 'Teamwork' & 'Customer Service', and that a shorter referee-applicant relationship does not adversely affect predictions of future job performance.

 

 

Virtually all organisations rely on references to some degree. Current research clearly points to structured reference checking as being far more valid than an unstructured process. The value of such a process is clear:

 

Human Assets, a leading company of qualified Business Psychologists, helped the Bar Council and Law Society to devise a structured reference-taking process for the selection of future QCs. The process proved invaluable as a source of information to be used alongside competency-based interviews in deciding people's readiness to be awarded the QC title. We could do the same for you. Drawing from our knowledge of research and practical expertise in this area, our consultants can help to devise a reference checking process tailored to your needs. We can advise on the best methods and even help define your core competencies.

 

With recruitment costs ever rising, talent management becoming ever more difficult, and the risks of litigation ever present, structured, competency-based reference checking can provide you with the added confidence you need in making selection decisions.  If you would like to find out more, please contact our consultants on +44(0)20 7434 2122 or by email enquiries@humanassets.co.uk

 

 

Taylor, P.J., Pajo, K., Cheung, G.W. & Stringfield, P. (2004). Dimensionality and Validity of a Structured Telephone Reference Check Procedure. Personnel Psychology, 57, 745-772.