What does the process of referencing candidates involve?

The process of referencing candidates primarily involves verifying a candidate's work history and performance by contacting previous employers. This step is crucial in the recruitment process as it helps to confirm the information provided by the candidate on their resume or during interviews. References can provide insights into a candidate's strengths, weaknesses, work ethic, and overall suitability for the role they are being considered for. By reaching out to past employers, recruiters can gather valuable feedback that aids in making informed hiring decisions.

In contrast, while contacting competitors might give some industry perspective, it doesn’t directly verify a candidate's qualifications or past job performance. Conducting tests on candidate skills focuses more on assessing abilities rather than providing historical performance context. Similarly, researching candidates on social media can offer additional insights but does not replace the essential verification of work history and performance that references provide. Thus, option B accurately captures the primary purpose and importance of referencing candidates.