Reference Checks are mandatory in Australia. As well, references known as “back door” references which are better explained as being references the professional has not approved of or those that are not consented too are illegal.
As a Recruiter or as a Head-Hunter you must collect at least two professional references. For a Recruiter this is a great opportunity to expand that realm of influence and to expand your network either with other likeminded professionals that are potentially looking for work, or even to develop new business contacts. It’s also a golden opportunity to further gather industry information and knowledge.
To the end client though the Reference Check itself is integral to the process of hiring a new employee and when we come to the reference itself, it is only as effective as the person who's taking the reference.
As a Recruiter/Head-Hunter you’ll often walk into a firm and be given a standardised “Reference Check” form. The limitation of this approach is its lack of specificity. It comes down to questions and the line or approach which you as the person taking the reference take. If you have a 10 questions sheet which you use on every single reference I would probably have a look at what you’re doing. You're conducting a reference based upon that persons professional involvement with a particular company - why not structure your reference questions to reflect this.
Also, although it's common to stick with the referees as provided by the professional without question; why not steer this process? Ask the professional for references that "you" think are applicable for the job at hand i.e. Leadership, ask for somebody that has reported into them, speak to their manager (though that's pretty standard), Business Development ... ask to speak to a client, manage subcontractors ... ask to speak to a subcontractor.
If at “ABC” company the professional had been involved in or led “X” project and this is listed on the professionals resume why not structure your questions around this; think leadership and supervisory skill, technical competence, even how they dealt with pressure as pertaining to that actual working environment.
The questions that you can ask are ongoing and will depend on your industry and the specific role but I’m sure that you’re starting to see the big picture that with a little creativity not only are references a great marketing and business development tools but they’re also incredibly valuable when further qualifying professionals during the hiring process.
Don't be afraid to get creative on a reference, exploring to a new level what is stated by the professional in their resume and the referees that they provide but also challenge yourself as a professional. The end client and probably the referee will appreciate you taking the time to be thorough.