In today's fast-paced business world, the quest for top talent is more competitive than ever. For HR Managers, HR Directors, Talent Acquisition Managers, and Compliance Managers in industries such as healthcare, retail, recruitment, and hospitality, the need to streamline and expedite the hiring process is paramount. This is where reference check software comes into play.

What Is Reference Checking Software? A Comprehensive Guide for HR Professionals

What is Reference Checking Software?

Reference checking software, also known as automated employment reference checking software, is a powerful tool designed to simplify and enhance the hiring process. It enables organisations to efficiently gather and assess information about job candidates by automating the reference-checking process.

Why Do Companies Use Reference Checking Software?

  1. Efficiency: Traditional reference checks involve a time-consuming back-and-forth with referees, playing phone tag, and manually documenting responses. Reference checking software streamlines this process, saving valuable time for HR professionals when requesting a reference for a new employee.
  2. Accuracy: Automated reference checks reduce the risk of human error, ensuring that the information gathered is accurate and consistent. When conducting employment reference checks, accuracy is crucial.
  3. Compliance: In industries with strict regulatory requirements, like healthcare and hospitality, compliance is non-negotiable. Reference checking software helps maintain compliance by storing records securely and allowing for easy retrieval when needed, especially for HR reference purposes.
  4. Candidate Quality: By gaining deeper insights into a candidate's background, employers can make more informed hiring decisions, resulting in higher-quality hires. This is especially valuable in reference checks after a job offer has been extended.
  5. Cost Savings: The automation of reference checks can significantly reduce costs associated with the hiring process, such as administrative expenses and the potential costs of hiring the wrong candidate. Three-quarters of companies that made a bad hire in the US reported on average, they’d wasted $14,900 per bad hire. Reference-checking software can help manage these costs effectively and remove any barriers that might be affecting your team from carrying out such checks.

Getting Started with Reference Checking Software

If you're considering implementing reference checking software for your organisation, here's a step-by-step guide to help you get started:

1. Identify Your Needs: Assess your specific hiring needs and determine the key features you require in a reference checking software solution, particularly for employment reference checks.

2. Research and Compare: Explore the available reference checking software options for employment referencing. Look for user reviews, case studies, and recommendations from trusted sources within your industry. Social proof is a great way to compare these systems, not only does it prove real-world usage but it demonstrates how the company runs behind the scenes and what support you’ll receive if you become a client. Don’t overlook this step!

3. Request Demos: Reach out to software providers for product demonstrations focused on employment references. This will allow you to see the software in action and evaluate its user-friendliness and functionality. It also gives you an opportunity to see if the team understands the problem and is aligned with your needs.

4. Integration: Ensure that the chosen software can seamlessly integrate with your existing HR and recruitment systems for a smooth workflow when conducting reference checks after a job offer. More often than not, ATS (applicant tracking systems) can be utilised to create a more streamlined approach to referencing. Find a company that is willing to integrate with your chosen ATS or HRIS (Human Resources Information System). Just because they don’t feature it on their website, doesn’t mean they can’t provide a solution.

5. Training: Invest in training for your HR team to maximise the benefits of the software, especially when requesting a reference for a new employee. A well-trained team can efficiently navigate the system and make the most of its features.

6. Test and Refine: Begin using the software on a smaller scale before rolling it out company-wide for HR reference purposes. This allows you to identify any issues and make necessary refinements.

7. Monitor and Measure: Continuously monitor the software's performance, especially for employment reference checks, and gather feedback from your HR team. Use analytics to measure the impact on your hiring process and make data-driven improvements.


In conclusion, reference checking software is a game-changer for HR professionals. It not only accelerates the hiring process but also enhances the quality of hires and ensures compliance, particularly in HR reference scenarios. By following these steps, you can harness the full potential of reference checking software, especially when conducting reference checks after a job offer, and stay ahead in the competitive world of talent acquisition.

If you're ready to take your hiring process to the next level, explore our automated referencing platform at RefNow. Our cutting-edge software is tailored to your industry's needs, ensuring a seamless and efficient hiring experience, particularly for employment reference checks. Contact us today to learn more.

If you would like to learn more about how RefNow's automated Employment Referencing software can help your organisation, reach out to us today and get your first 5 checks free.