When applying for a rental property tenant history is methodically and ruthlessly checked ̶ and with good reason. There's a lot on the line if an agent accepts a tenant who goes on to trash the place. The same is true in HR, yet careful reference checking has slowly been slipping away, according to recruiter Kelly services.

"It's crucial that employers verify the information presented on a candidates resume is factual and reference checking is a great way to assess a person's work ethic, reliability and personality traits," Penny O'Reilly, general manager Kelly Services said. She said that reference checking is a vital step of the recruitment process, but employers often don't consider it to be as important as other stages.

However, conducting reference checks can avoid the pitfalls of recruiting an unsuitable candidate, such as when someone has misrepresented themselves and their abilities. O'Reilly said effective reference checkingis a skill in itself, and should never be overlooked.

She said the challenge lies in getting the information you need without overstepping the legal boundaries, such as violating a person's right to privacy. John Rawlinson, CEO Talent2, said despite some debate about the value of reference checking, "it's all about the experience and expertise of the people who are taking the references and how they are actually used". O'Reilly added that with the rise of social media sites, such as LinkedIn and Facebook, there is the temptation to check candidate profiles instead of making personalised reference check calls.

However, O'Reilly warned that a person's online social identity may strongly differ from their professional personality, and "social media should not be used as a substitute to personal conversations with a candidate's previous manager".

Kelly services have developed a four-tip checklist for reference checking including:

1. Only deal with direct managers. When conducting a reference check you have to clearly establish the working relationship between the candidate and the referee. Previous managers and superiors are more likely to answer questions about working habits and capabilities rather than peers who may be friends with that employee.

2. Ask specific questions relating to the skills required for the job.

- Performance: Ask questions such as, 'can you give me an example of the candidate performing x task'?
- Behaviour and reliability: "Can you give me an example of how diligent and reliable the candidate was"?
- Motivation: "What would be some examples of ways the candidate was looking to learn and grow"?
- Technical skills: This gets into the nitty-gritty of the job at hand. Make sure you ask questions that will identify that the candidate has certain skills. Where possible, ask for examples to back it up.

3. Avoid questions that could be considered discriminatory. These include questions relating to marital status, physical appearance, sexual preference, family/child care arrangements or health; unless you can demonstrate that they are an inherent requirement of the position.

4. Don't ask closed questions. Don't ask questions where a 'yes' or 'no' answer is provided. All answers should follow with a reason why.