How important is the reference check before offer stage?
What does the hiring firm wants to know exactly? I meant the references I provide would be someone that's close / will speak highly of me, right? Or is it more about finding out fit / working style?
How do you guys manage it? Do you call up your previous colleagues / boss and brief them what to say or just let them do it?
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Reference checks in the hedge fund (HF) hiring process are crucial but often serve as a "check-the-box" step rather than a dealbreaker, provided there are no red flags. Here's what you need to know:
Importance of Reference Checks:
Reference checks are typically conducted after the hiring firm has already made up its mind about you. They are more of a formality to confirm their decision rather than a deciding factor. However, if something negative or unexpected comes up, it could impact the offer.
What the Hiring Firm Wants to Know:
Who Should Be Your References:
Managing the Process:
In summary, reference checks are important but usually not the sole determinant of an offer. Focus on selecting strong references, briefing them appropriately, and ensuring your professional reputation is solid.
Sources: https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Private Equity Reference Check, Finishing 1st Year as HF Analyst - Ask Anything, PE Interview Question: What is the most important piece of information about a company (if you had to select one thing)?, Finishing 1st Year as HF Analyst - Ask Anything
They've already decided they want to hire you, the referencing is to filter out the left tail of worst outcomes.
Pick someone you've actually worked with that has reasonably good things to say about you. What you want to avoid is that they find out you were actually fired from your previous job and didn't tell them, that you burnt bridges so badly with your previous colleagues that no one is willing to say anything good about you, or that you never actually worked there and your whole CV was a lie. All of these do happen.
It's worth making sure that they know what's on your CV and what you claimed you did at your previous job.
thanks. This happens during the middle of the process, BEFORE the final interview... is this normal?
No. And seems f*cked up, given they're potentially wasting your peoples' time.
Yea just prep whoever you selected
I've had reference checks after an official offer that turned out to be check the box exercises
I've also had reference checks after a verbal (but prior to official offer) that turned out to be absolute grill sessions.. one of my references told me he was sweating by the end of the call
Give the references a heads up.. you could brief them what to say as in same message you told your new employer but that's about it. Not much you can do besides that
I only asked my references once what exactly they were asked.
In that case, it was an online survey with a bunch of generic prompts and free text fields.
Seems my references basically entered 100% made up stuff without even looking at my resume again. Still, it apparently took quite some time to complete.
No issues.
So I guess all they're testing for: are there bridges that this person hasn't burned? Haha.
I felt sorry after, given it was such a bullshit exercise.
have also been asked to provide references BEFORE making an offer (after case study, and meeting everyone onsite though).
Is it normal practice to provide references first before seeing the offer? I'm asking is because I have been asked about this a few times, the first time, the fund decides to not hire anyone eventually, the second time they presented a ridiculously low offer that's obviously not a good fit... that's why I now have to ask my former boss for a 3rd time and have a bit of PTSD... what if it doesn't work out?
So just wanted to check everyone's experience - is it normal to provide references before final offer? and how do you handle it? After all, it's hard to know if it's a fund you'll eventually join until discussing comp and asking follow-up questions such as marketing doc and written research, which usually happens after the offer stage, right?
ideally you're having comp expectation discussions in the early stages to know whether or not either party wants to proceed with the process... and part of the interview process is for you to ask them questions and see whether it makes sense to proceed with further rounds or not... it's a two way process. Don't wait until the end or waste time to only be let down at the end
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