The Indicator from Planet Money Do job references matter?
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Dec 17, 2024 
Sally Hersheps, a reporter known for her insightful takes on economic trends, dives into the evolving world of job references. She discusses how the process has shifted from simple phone calls to detailed written evaluations. This transformation raises questions about the actual value of references today. Legal risks for employers complicate the situation, leading many to limit the information they share. As technology advances, the relevance of traditional references is waning, with new hiring methods on the rise in many industries.
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Declining Value of References
- References are becoming less valuable in hiring.
- Other methods like job simulations and interviews offer better insights into candidate potential.
Legal Reasons for Written References
- Employers are increasingly requesting written references to protect themselves from negligent hiring lawsuits.
- Written references offer documented proof of due diligence in the hiring process.
Defamation Lawsuit Example
- A firefighter in South Carolina sued his former employer for defamation after a negative reference.
- The employer settled and issued a public apology, highlighting the legal risks for reference providers.