Giving negative references can cost you

Employer brand
Written By Alex Santos

When an employee decides to leave a company, they may ask for a reference letter from their former employer to help them with their job search; or their next employer may ask them if it is okay for them to contact their previous employer. Sometimes, an employer may be tempted to give a negative reference to an employee who is leaving, especially if they had a bad relationship, poor performance, or a misconduct issue. A negative reference can include criticisms, complaints, or warnings about the employee's attitude, behavior, or work quality.

While it may seem like a good idea to give a negative reference to an employee who is leaving, there are several reasons why a company should avoid doing so. Here are some of them:

  • It can damage the company's reputation. Giving a negative reference can reflect poorly on the company's culture, values, and ethics. It can make the company look unprofessional, petty, or vindictive. It can also discourage potential candidates from applying to the company, or existing employees from staying loyal.

  • It can expose the company to legal risks. Giving a negative reference can result in a defamation lawsuit from the employee who is leaving, if they can prove that the reference was false, malicious, or harmful to their reputation. Defamation lawsuits can be costly and time-consuming for the company, and can also damage its public image.

  • It can harm the employee's career prospects. Giving a negative reference can make it harder for the employee who is leaving to find a new job, or to advance in their career. This can have negative consequences for their mental health, financial stability, and personal growth. It can also create resentment and animosity between the employee and the company.

  • It can prevent constructive feedback. Giving a negative reference can prevent the employee who is leaving from learning from their mistakes and improving their skills. A constructive feedback is one that is honest, respectful, and specific, and that focuses on the employee's strengths as well as areas of improvement. A constructive feedback can help the employee who is leaving to grow professionally and personally.

Worried job candidate after interviewer asks for work references.

Therefore, a company should avoid giving a negative reference to an employee who is leaving, and instead opt for a neutral one sticking to verifiable facts. A neutral reference can highlight the employee's potential, without mentioning any negative aspects of their performance or behavior.

Many larger employers opt to simply provide start and end dates for the employee’s tenure with the company, and the employee's starting and ending salary. This way they avoid any potential liability as a result of their "reference".

Has one of your employees recently turned in their two weeks' notice and you're struggling because you don't want their future employer to have the same issues you did with the employee? It may be a good time for you to consult an HR professional. Let's talk!

Alex Santos
As Managing Member of Collabor8 Learning, my role is to build and execute learning and development strategies for organizations seeking to improve the return they are getting from their training programs. We focus on four core areas: performance analysis, instructional design, e-learning development, and learning management. As a hybrid HR/instructional design consultancy, Collabor8 Learning partners with your team to leverage today's training technologies to increase the productivity of your people. I am a senior human resources and training executive with over 17 years of progressive experience. My work in private industry has focused heavily on the development of learning and development systems that transform employee performance from ordinary, to remarkable. I accomplish this by combining organizational development strategies and tactics to blended learning programs with line of sight alignment to clearly defined performance goals. Additionally, I launched Miami Payroll Center in conjunction with my brother and sister-in-law in 2004 to meet the payroll needs of small to mid-size organizations. Our consultative approach to guiding new entrepreneurs as well as more seasoned business owners in alleviating the pain of payroll processing has created a very successful and growing payroll processor in the market. Specialties: Instructional Systems Design, E-Learning, Learning Management Systems, Payroll, Organizational Development, Employee engagement, HR Strategic Planning, Talent Acquisition & Management, Leadership Development, Coaching & Mentoring, Employment Branding Proposition & Positioning, Workforce Planning, Performance Management, and Leadership Development.
https://www.bynimble.com
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