In the payments industry, job seekers tend to focus heavily on perfecting their resumes, preparing for interviews, and researching employers. While these steps are critical, payments recruiters highlight another crucial element that often gets overlooked—reference checks.
Are Reference Checks Still Relevant in 2024?
With the prevalence of online professional networks like LinkedIn, many candidates may question whether traditional reference checks still hold relevance. According to the Microsoft 2024 Work Trend Index, reference checks remain a critical step in the hiring process. Despite the wealth of information available online, these checks provide unique insights into a candidate’s work habits, reliability, and cultural fit—elements that online profiles and resumes cannot fully convey. In the payments industry, where accuracy and trust are paramount, reference checks continue to play a vital role in hiring decisions.
Why Employers Still Rely on References
Employers across the payments industry continue to request references for several important reasons:
Verification of Information: References confirm the accuracy of a candidate’s claims about their skills, qualifications, and work history. This step is particularly crucial in a detail-oriented field like payments, where a single mistake can have large repercussions.
Minimizing Hiring Risks: A wrong hire can be a costly error in terms of both money and time. Reference checks help employers gain a clearer understanding of whether a candidate is truly the right fit for the position, reducing the risk of costly mistakes.
Cultural Compatibility: Beyond the technical skills, employers want to understand if a candidate will fit within the company's culture. References provide key insights into how the individual interacts with others, how they handle communication, and whether they thrive in a collaborative environment.
What Do Employers Ask During Reference Checks?
When employers reach out to references, they focus on specific areas that give a clearer picture of the candidate’s capabilities and work habits. Here are some common questions employers ask:
Employment Details: They verify job titles, employment dates, and the responsibilities held to confirm they align with what the candidate has claimed.
Strengths and Areas for Growth: Employers often ask about the candidate’s key strengths as well as any areas they could improve.
Team Dynamics: They want to understand how well the candidate works with others, how they contribute to team success, and how they handle collaboration.
Problem-Solving Skills: Employers seek examples of how the candidate approaches challenges and their ability to perform under pressure.
Work Ethic: Punctuality, dedication, and reliability are often discussed to ensure the candidate can meet the demands of the position.
How Many References Should You Provide?
Most employers expect candidates to offer three professional references. These individuals should be people who have worked closely with the candidate—managers, team leaders, or colleagues who can vouch for their skills and work ethic. Selecting individuals who can speak to both your technical abilities and character is crucial to leaving a strong impression.
Professional vs. Personal References: Which Is Better?
In nearly all cases, professional references carry more weight than personal ones. Professional references—supervisors, team leads, or coworkers—provide credible insights into the candidate’s job performance, behavior, and skills in a workplace setting.
Personal references, such as friends or family members, typically lack the professional context necessary to assess a candidate’s qualifications. That said, for those with limited professional experience—like recent graduates—employers may accept personal references if they provide relevant insights into character or soft skills. In such cases, it’s best to offer personal references only when necessary.
The Role of References in the Payments Hiring Process
Reference checks offer employers something that online profiles and resumes cannot—genuine, firsthand insights into a candidate's work habits, reliability, and potential cultural fit. While online tools are valuable for gaining an overview of a candidate’s qualifications, references provide a more personal and realistic evaluation.
Job seekers should carefully consider which references to provide, selecting individuals who can give a well-rounded view of their capabilities. Before offering these contacts, it's important to reach out to your references, ensuring they know what to expect and can provide thoughtful, supportive feedback. A strong reference can often be the deciding factor in a competitive hiring process.
The Wrap Up
Job seekers should approach reference checks with as much care and strategy as they do their resumes or interviews. Choosing the right people to speak on your behalf can significantly improve your chances of landing a role—particularly in specialized industries like payments, where professionalism and industry-specific expertise are highly valued.
Looking for your next career move?
At Dexterous, we excel at matching top talent with leading payments and fintech companies. Whether you’re exploring new opportunities or need guidance on your career path, reach out to us today to learn how our payments recruiters can support your journey.