As an aside, it seems to me like it's always worth asking for and contacting someone's references (but only as the final step before giving an offer... as a candidate, I don't appreciate employers calling my references unless they are serious about hiring me). To me, it's a red flag if someone can't find 2 people to say good things about them. But in practice, many employers don't seem to put in the effort to call references.
I wonder what would have happened if my references didn't check out. Would they then inform the customer that I wasn't available? Would they turn their back on almost a $100,000 in revenue (the portion they would take from my contract)?
Makes no sense.
Also, what should one do, when one's previous employers (and thus potential references) are also employers from whom we are currently evaluating competing job offers?
When I was last looking for work, I called up my references and told them that I'm applying to jobs over the next few months and asked if it would be okay to list them as references. One of them said "no problem". The other said also said no problem, but "it would be helpful if you shoot me a warning when I should expect a call, if possible".
Basically, just ask your references. It's bad form on the part of recruiters/employers to contact your references without telling you explicitly first, but it happens, so it's good to have your references on board.
That said, I'm an open reference for a few folks, meaning I've told them to list me as needed and I'll pick up the phone. I know these folks pretty well, and they know me well enough to know that I don't need to prep for something like that.
Hiring is a complex game, and I want all the information I can get.
> XXXX is an applicant for a post we have here, and I'd appreciate anything you can tell me about them. Obviously I'm interested in their abilities and attitude, but I'd like to know anything you'd like to tell me. And of course, I will treat anything you say as confidential.
I'm looking for inconsistencies in stories, and then giving the candidate the best possible opportunity to provide evidence that they will provide value for the company, and be happy in their work.
Once when I was still practicing law - references are really common in that industry (as is your law school and whether you did law review mattering 5-10 years later!)
The other time when I worked in higher education. It was a technical role, but it's really common in higher ed.
Both times, those references got phone calls. As a matter of my own process, I won't submit references until we're close to the offer stage.
I have even met individuals for dinner when I have been filling an executive position.