Reference checks remain one of the most effective tools employers can use to make informed hiring decisions. While resumes, interviews, and skills assessments all play an important role, reference checks offer a direct look into how a candidate performs in real workplaces. They help validate experience, clarify work habits, and provide insight into how an individual collaborates with colleagues, manages pressure, and contributes to organizational culture.
However, reference checks also come with clear legal boundaries. Asking the wrong questions can expose employers to compliance risks, human rights violations, or biases that inadvertently influence the hiring decision. These risks are especially important to consider in Canada, where employment and privacy laws protect job seekers from intrusive or discriminatory inquiries.
For hiring managers and HR professionals, knowing exactly what you can and cannot ask is essential. At LRO Staffing, we work closely with clients to ensure their hiring processes are efficient, fair, and compliant. This blog outlines best practices, the value of high quality reference checks, and the questions that stay on the right side of employment law.
Why Reference Checks Still Matter
In today’s fast-moving labour market, some organizations skip reference checks entirely, either to speed up hiring or because they assume the feedback will be limited. This is a missed opportunity. When done correctly, a reference check can confirm a candidate’s strengths, uncover patterns of performance, and flag potential concerns that may not emerge in an interview.
Effective reference checks help:
- Validate the accuracy of a resume – Reference checks verify employment dates, responsibilities, and accomplishments. This protects employers from resume inflation and ensures that the chosen candidate has the right experience for the role.
- Understand behavioural traits – Technical skills can be evaluated through assessments, but soft skills require deeper insight. References can speak to communication style, initiative, teamwork, reliability, and leadership potential.
- Confirm culture add – Culture add is not hiring for sameness, but ensuring a candidate thrives in your organization’s structure, pace, and expectations while bringing a unique perspective to the team.
- Reduce the risk of a costly mis-hire – Replacing an employee can cost anywhere from half to twice their annual salary. A well-structured reference check offers reassurance that the candidate you are hiring is ready for success.
How to Prepare for a Strong Reference Check
To conduct a thorough and compliant reference check, preparation is key. Start by confirming that the candidate has provided formal consent to contact their references. This is required under Canadian privacy legislation. You should also ensure that at least one reference is a direct supervisor if possible, as they can provide the most accurate insight into performance.
A consistent list of questions should be used across all candidates applying for the same role. This helps maintain fairness, reduces bias, and ensures that all applicants are evaluated on the same criteria. For help with this, read our blog post on How to Recognize Interview Bias and Build Stronger Teams.
Finally, reference checks should take place near the end of the hiring process. By this stage, the talent pool is narrow, and the information gathered can meaningfully support the final decision.
Questions You Can Ask During a Reference Check
Employers are allowed to collect information directly related to performance, experience, skills, and job suitability. The following categories of questions are appropriate for reference checks in Canada.
1. Employment verification
These foundational questions ensure the candidate’s work history is accurate.
- What were the candidate’s job title and main responsibilities
- What were their start and end dates
- Was the candidate full time, part time, contract, or temporary
2. Job performance
Ask about the quality of work, technical skills, and level of independence.
- How would you describe the candidate’s day to day performance
- What were their key strengths
- Did they consistently meet expectations and deadlines
3. Behavioural and interpersonal skills
These questions help you understand how the candidate interacts with colleagues.
- How did the candidate respond to feedback
- How well did they work within a team
- How did they manage stress or competing priorities
4. Reliability and professionalism
Attendance, follow through, and accountability are essential traits.
- Was the candidate dependable
- Did they take initiative
- How would you describe their communication style
5. Suitability for the new role
A reference can provide context that applies directly to your hiring needs.
- Do you think this candidate would succeed in a role with these responsibilities
- Is there anything you believe the hiring manager should be aware of to support their success
These questions stay within legal boundaries and help employers gather meaningful insight that supports a confident hiring decision.
Questions You Cannot Ask During a Reference Check
Canadian human rights legislation protects candidates from discrimination based on protected grounds. Any question that touches on an individual’s identity, personal life, health, or non job related circumstances is off limits. These prohibited topics apply during interviews and reference checks.
1. Age, date of birth, or years until retirement
Employers cannot ask about a candidate’s age or plans for retirement.
2. Marital or family status
This includes questions about children, childcare, family plans, or pregnancy.
3. Religion or spiritual beliefs
Questions about faith or religious practices are not permitted.
4. Ethnicity, country of origin, or citizenship
You may only confirm legal authorization to work, not personal background.
5. Gender identity or sexual orientation
Employers cannot inquire about a candidate’s gender or sexual orientation.
6. Disabilities or health conditions
You also cannot ask for information about sick days, medical leave, or medication use.
7. Political beliefs or union activity
Questions about political affiliations or union involvement are prohibited.
8. Arrests or criminal charges that did not lead to conviction
Employers may only inquire about convictions directly related to the role and bona fide occupational requirements.
Any reference who volunteers personal or discriminatory information should be refocused back to job related topics. Even if the reference raises these issues, employers must not use that information in the hiring decision.
How a Staffing Agency Streamlines the Process
Partnering with a recruitment firm like LRO Staffing removes the guesswork and risk from the reference checking process. Our consultants follow strict procedures that ensure compliance with employment standards and privacy regulations. We tailor reference questions to align with industry requirements and specific job competencies, while keeping the process objective and consistent.
Working with a staffing agency also helps:
- Reduce time spent coordinating reference calls
- Ensure reference validation is thorough and unbiased
- Provide a standardized evaluation framework
- Maintain proper documentation for hiring audits
- Identify potential concerns early in the process
Because we work with thousands of candidates across many industries, our team has a refined sense of which reference feedback indicates a top performer and which red flags require attention.
Best Practices for Consistent and Compliant Reference Checks
To get the most out of every reference check, employers should follow these practical tips.
1. Always obtain written or digital consent
This protects both your organization and the candidate.
2. Use structured questions
A prepared list ensures fairness and focus.
3. Take detailed notes
These notes become part of the candidate’s hiring file and support a transparent decision making process.
4. Keep the conversation professional and concise
Respect the reference’s time and avoid personal or hypothetical topics.
5. Stick strictly to job related questions
This ensures compliance and protects against unconscious bias.
6. Look for patterns over isolated comments
One negative comment does not necessarily reflect a candidate’s overall performance. Compare all feedback together.
Putting It Into Practice
Reference checks remain one of the most valuable tools available to employers, but only when they are conducted properly. Understanding what you can and cannot ask helps maintain compliance, protects candidates from discrimination, and keeps your hiring process focused on qualifications and performance. With the right preparation and structure, reference checks can strengthen your decision making and reduce hiring risk.
LRO Staffing supports organizations across Canada with full service recruitment solutions that include compliant, reliable, and high quality reference checks. If your team needs support navigating complex hiring processes or finding the right talent, contact us today for help.
