Reference checks and backgrounds checks are common screening tools used in the hiring process. Both methods are used to verify elements of a candidate's application, interview and work history. However, they serve different purposes. The reference check typically comes before a background check when a company uses both approaches.
Reference Checks
Employers commonly ask interviewees to submit references at the point of the interview or afterward. Reference checks are used to verify a candidate's employment history and to confirm basic experiences and accomplishments. They are usually performed on one or more finalists for a position before a hiring decision. Hiring managers don't waste time checking references unless they have serious interest in a candidate. The reference check is a basic employment verification tool.
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Background Checks
A background check is a more thorough investigation into a candidate's background, including employment verification, criminal records checks and educational history reviews. Additionally, some jobs require checks of driving records and credit history. This tool is usually only used once a final candidate has been determined or an offer of employment has been extended. The hiring manager normally offers the job on the condition of an acceptable background review. Some employers don't use background checks, but candidates for jobs in education and child care can expect to undergo them. Companies hire outside firms to complete formal background checks, which is why they are only performed on a prospective hire.
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