Do you want to be transactional or strategic?  Do you want the best information or minimal information?

Those are the questions you should ask when pondering at what point to check references in your hiring process.

When do you check references in your hiring process?  If you're treating the reference check process like a transaction - like something to check off that you've done - you're checking references when you're down to your final candidate, and at times even post-offer.

Checking references when you're down to the final candiate or even post-offer means you're already committed to the candidate.  That usually means your reference check process is minimal to the point that the only thing that can stop the hire is something related to criminal background. Additionally, even if you ask the right questions, valuable information offered by the reference that might cause careful consideration related to a candidate is often ignored.

After all, you're down to one candidate.  Maybe you've made an offer while references are still being contacted.  The hiring manager you're supporting with your reference process has little incentive to stop the process at that point.

Which is why more companies are revamping their reference process to ensure that references are collected for all finalists for an open position.

Think about it.  If you do references for all candidates who are finalists for an open position, you've just made the feedback collected more than a simple knock-out process.  If you check references for 4 candidates who are finalists in your process, you've turned the feedback collected into the equivalent of an expert interviewer - the feedback that results can be compared and contrasted across all candidates and the position in question.  As a result, a candidate who appeared to be the #2 choice can emerge as the #1 if your reference check is thoughtful, systematic and probing.

A good reference check process is a "knock-out" tool.  It's a tool that allows candidates to "trend up" in the process based on the information uncovered and contrasted as you compare candidates.

You don't get that if you only check references on the final candidate.  Check references on all finalists and committ to making the data uncovered as much a part of your hiring process as comparing interview notes.

You'll be glad you did.