What to do if an interviewee refuses to submit references?

Reference checks are of course a necessary requirement. There is no ifs or buts about it.

This said, if the candidate is reluctant to reveal references then as a recruiter you need to find out why.

I have witnessed supervisors "massaging" employee files by pre-dating or post-dating documents and supervisors who have committed unethical and illegal acts. As a candidate, you think you know that that same supervisor is going to be unethical with you as well but, you don't want to say anything because mentioning the situation leaves a negative feel on the interviewee's profile.

On the other hand, candidate massage their resume so much that it no longer truly reflects their competencies. In these times, as it is hard to find a good well paid job, may be some candidates feel necessary to lie in order to get what they feel they are worth.

So between being misguided, fear of rejection, fed up with the repetitive process or maybe resentful toward a past supervisor, some candidates simply elect to avoid the subject.

As a recruiter, the expectation of a reference check, an employment check, an education check, a criminal background check and maybe a credit check need to be addressed on the onset. It's part of the process of getting a new job.