Meet Harry.  Harry is a loyal employee who gets his work done in a reasonable time.  But Harry also takes 2-hour lunches, surfs fantasy football websites, and spreads harmful office gossip.  He may have even met with HR a time or two.  See, Harry is a habitually problematic employee, and most businesses have at least one worker like him. As a business owner or Human Resources manager, you may breathe a sigh of relief when Harry parts ways with the business—that is, until another employer calls for your opinion of him.  Knowing this employer may or may not hire Harry based on your answer, what do you do?  Do you tell the employer what you really think about Harry’s work habits?  Do you leave out the part about the 2-hour lunch breaks?  Do you avoid the phone call altogether?  Not only is this situation uncomfortable, but it presents potential legal problems if improperly handled.

Some businesses solve this problem by routing all reference checks through the Human Resources Department.  HR will then verify Harry’s most basic information, such as job title and dates of employment.  Though this option will keep your business out of legal trouble, it may irk managers who want to ensure other employers aren’t subjected to Harry’s bad habits.  In these cases, advise annoyed managers how important it is that the business distributes consistent, carefully worded statements.  Even the most truthful statements, if poorly worded or documented, can become legal ammunition.

Another way to shield staff from these uncomfortable inquiries is to deal with Harry proactively during the exit interview.  There are two ways to do this.  Method One is to ask Harry for a signed release allowing the business to share reference information.  If he refuses to sign, explain to reference-seekers that Harry did not consent to release information.  Method Two is to plainly tell Harry that the business won’t be able to provide a positive reference.  That should be enough for Harry to look for references elsewhere.

Harry’s resignation may have solved a performance problem, but not all departing employees are like Harry.  Many times, good employees move on—a trend that will likely increase as the economy recovers.  But losing a good employee doesn’t have to be a bad thing!  It can be a key opportunity to learn about your business and to make it better.  For tips on how to make the most of a departing employee, see YES! Your Human Resources Solution’s recent news article, “When It’s Time to Say Good-bye.”

For other tricky HR questions facing your business, YES! has the answers!  Visit our website to see how Orange County’s premier HR consultants can help your business grow and thrive into the future.