The Amazing Perks of Hiring Through Referrals

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“I have a friend who would be perfect for this position”. Some people may call it nepotism, morally dubious, or simply wrong, but truth be told, when done properly, referring is one of the most effective methods of hiring.

Most companies, regardless of their specialization, industry, or market, tend to have a variety of professionals in their staff in order to keep it going. They need people to manage their payrolls, accountants, lawyers, an HR team, or marketing specialists. All of these people went to school and obtained a diploma in all of their areas and they’re good at what they do—that’s why you hired them, right? So, it stands to reason that they know people who are also good at what they do.

As a technique, referral is an internal method of filling a vacancy in a company by using current employees to spread the word about the kind of professional you’re looking for. Who better to give a description of the vacancy and the company than someone already working there? You’re basically turning your employees into recruiters by drawing possible candidates from their personal contacts.

Logistically speaking, there are several advantages to hiring new employees by referrals. It’s all about the efficiency and simplicity of the method. But take it with a grain of salt, there are conditions to be able to do this properly.

The first and most important thing is to keep your employees happy and satisfied. Why would someone recommend a job to their friends or colleagues if they don’t like the company or the way they’re being treated?

When Hiring Managers or recruiters set up a job posting online, they are expected to describe the company as well as its culture. Granted, in order to attract more candidates, they need to make it sound appealing and they can sometimes sugar coat it. An employee, someone who’s already on the inside can give a referred candidate a clearer and more honest picture of the company and the job at hand.

Statistics show that the hiring process of a referred candidate is much faster than that of a regular prospect coming from a traditional source. By skipping the entire application process, a referred candidate usually starts working after 29 days of being contacted by the company, as opposed to the average 39 days it takes for an employee to start via traditional methods of recruiting.

Not only that, but the training process of new hires that were referred is much quicker and easier due to the fact that they arrive with a friend, someone they trust and can ask for advice and guidance. It is easier to ask someone for help when they don’t have a boss-employee relationship.

There are also indications that the retention rate of referred hires is higher than those that come from traditional methods. A study shows that 46% of said hires stay for over a year in their company after they were hired, as opposed to the 33% of traditionally hired workers that last the same time. Furthermore, referrers also tend to stay longer. When they recommend someone for a position and they’re heard, employees feel important, taken into consideration, and respected.

Some companies even have a referral reward program for their employees. The conditions and details may vary from one establishment to the other, but the general idea is that when an employee recommends a personal contact of theirs to fill a vacancy, they will be rewarded; provided, of course, that the new hire passes the tryout period and becomes an efficient employee.

We’re not saying that you should switch your hiring process and rely solely on referrals, we’d be out of business! The trick is finding every tool available in the shed and using them to your advantage. Using all the different hiring methods and techniques is the key to ensuring that you’ll always be able to bring in the best candidates to your company.

Trust your employees to make a good judgment call and recommend their friends or colleagues. If they like their job and are committed to the betterment of the company, they will recommend good candidates that could become valuable assets.

Edu Rojas/NEUVOO
Content Marketing Editor