Final answer:
Reference checks are considered poor predictors of job success due to their low reliability and validity, making it challenging to gauge a job candidate's potential and thus their use is discouraged in hiring.
Step-by-step explanation:
Due to their low reliability and validity, reference checks are poor predictors of future job success and make it difficult to differentiate one job candidate from another. Consequently, their use as a hiring tool is often discouraged. While other methods like cutoff scores, cognitive ability tests, and assessment centers also play roles in evaluating job candidates, the limited information provided through reference checks makes it challenging for employers to gauge the full potential or weaknesses of an applicant.
Employers may end up with a degree of uncertainty about an applicant's abilities, even after collecting detailed academic and work history information. This imperfect information can lead to a reliance on indirect indicators of capability, such as accolades or degrees from certain institutions. However, these indicators still fall short of providing a comprehensive and accurate understanding of an applicant's fit for the job.