Why does any company want reference?

Answer 1

Companies want reference from previous companies as well as others for knowing whether the information you supplied is correct or fake. In some cases, employees are having a bond of working for a desired period,but the employee starts finding a job elsewhere and tries to flee in bonded period,this is an offence of the new employer to recruit such person.
In some cases, employee hides crucial information such as he is wanted by law or police.

Answer 2

References are the paper trail of your School record, your reputation and employee record for life. No company will waste time and energy hiring and training someone that is a slacker, drunk, uneducated, incompetent, you get the idea.

You want them to know that you are dependable, have good judgment, are a self starter and do not need to be trained over and over. That you have not been in jail or prison, that if you get a traffic ticket you pay it promptly. That you are a decent and normal human being living a normal life.

The reference checking part is how they determine that you have told them the complete truth. Until they confirm what you say in your resume', it is just a fictitious composition. And Yes most jobs looking to hire you do call every previous employer for confirmations as to what kind of an employee you were when you were with them. The also call and confirm your education at all schools listed (colleges primarily)

Personal references are the people are the people who confirm that you are who you say you are and behave in the manner that you say you do.

Good Luck on that new job.

Answer 3

Because they want to see what kind of person you are that is for personal references and other references may include work references that is to determine if you are a good honest person that doesn't come into work high as a kite or drunk..

Answer 4

Because they are looking for one more reason why they should not hire that person.

If they could bar you based on Religion, Sex, Age, they would do that too.