I have to respectfully disagree with the folks who are saying that reference checks are of no value to the hiring manager. Either you aren't talking to the right people, or you aren't asking the right questions.
Don't just accept the hand-picked friends that the applicant offers up. Specify in the job announcement your minimum number of references, and that at least one of them needs to be a current or recent former supervisor, at least one needs to be a professional peer, and, if they're applying for a supervisory position, at least one of them needs to be someone they supervised. If the supervisor they offer doesn't seem to be very helpful, ask the applicant if you can contact another past supervisor. Don't bother contacting someone who hasn't worked closely with the applicant within the last few years.
I typically ask a few questions that are related to the technical aspects of the job, just to make sure the applicant isn't telling bald-faced lies on their resume. But the bulk of the questions should be focused on the personality traits that are important for the job, e.g., does he play well with others, describe his interpersonal communication skills, how does he react to stressful situations, etc. And I always point-blank ask the supervisor if the applicant had any performance or disciplinary problems.
References will not give a blatantly negative response - "this person is an asshole; I hope he never gets another job again." It would be nice if they were that forthright, but you have to listen carefully to their choice of words, tone of voice, and the pauses they make as they're trying to find a diplomatic way to say that Mr. Applicant didn't get along with his peers. In general, people are not sociopaths, so typically references are not going to out-and-out lie to you to cover up issues. They want to be helpful; you just have to steer the conversation in the right direction and learn to read between the lines. It is much easier to get the information you need if you cold-call the references and ask the questions without giving them time to reflect and compose a diplomatic answer. I've found that even people the applicant thinks are his best friends will spill the beans on weaknesses when they are engaged in back-and-forth conversation.
Yes, all of this takes a lot of time and effort. But you're about to make potentially a multi-year commitment to a new hire. Your life as a supervisor will be difficult indeed if you make a poor selection. Isn't it worthwhile to get as much information as you can from the people who know how Mr. Applicant operates in a professional setting?