Whether or not to provide a reference for a former employee is a gray area for most employers. Some companies limit the information that they will share to the former employee’s start date/end date, title, and maybe their pay. Others share their impressions of the former employee’s work all in. Others limit who the references can come from on behalf of the company. What is an employer to do? There are some considerations to ponder:
Pros of Providing References
- Supports Employee Career Development: Offering references can help former employees advance their careers, which can be seen as a positive and supportive action. This may result in a boomerang effect – perhaps the former employee goes and obtains additional skills then comes back to you.
- Builds Positive Relationships: Providing a good reference can enhance the company’s reputation as a fair and supportive employer, which can be beneficial for attracting and retaining talent. This may also prevent an unfavorable employee review on Glassdoor and similar platforms.
- Reflects Company Values: Companies that prioritize employee development and well-being often provide references as a matter of principle.
Cons of Providing References
- Legal Risks: Employers may be concerned about the potential for legal repercussions if a reference is perceived as negative, biased, or if it inadvertently reveals information that could lead to claims of defamation.
- Resources are Intensive or Lacking: Preparing references can be time-consuming, and some employers may not have the resources to provide detailed or personalized references. Or, they may not have the proper documentation to recall how the employee consistently performed their work so the reference is based on recency or hearsay.
- Consistency Issues: Providing references can lead to inconsistencies in how different employees are evaluated, which can be problematic if not managed carefully.
Ultimately, whether to provide a reference depends on the specific circumstances and the company’s policies. It can be helpful for both employers and employees to understand and clarify these policies in advance to avoid misunderstandings.
For our clients, we provide guidance that only the direct Manager, who monitored and documented the former employee’s work, should provide references once they are trained to do so. That last, underlined part of the sentence is key. It is important that a Manager reports out on the facts – what performance was experienced/observed, documented, and discussed with the employee. Any information other than that can put the Manager and the company in harm’s way. Do you feel that your Managers could use a Human Resources 101 training? We do that! Set up a 30-minute free consultation to explore a partnership with us.
By: Angie Addison, SHRM-CP, PHR | Founder & Owner of Milestones HR, LLC www.milestoneshr.com
