The question most often asked in hiring is - "Where do I find the best people for my team?". The easiest answer to this question is to leverage your network. In fact, you can hire faster, better, and cheaper than ever before simply by creating a referral program for your employees and your community.
Your best advocates are your employees and community, and they're also your best matchmakers. People are better (at least for the time being) at matchmaking than algorithms or resumes. No one understands your company like your team. When an employee refers someone to their team, their brain has already executed a great matchmaking algorithm that matches the person to the team.
One of the most subjective and difficult things to evaluate is whether a new hire will fit in. A trusted referral or recommendation is much more likely to have good chemistry with their new team.
Reference checks are historically the last step of the interview process. But with a referral, it's almost like you have someone that is pre-checked. What's more, it's easier to find back-channel references through the referrer that will give you the real story about the candidate you're about to hire.
The best people rarely look for jobs. Job boards do not attract passive job seekers and cold sourcing and spamming people on LinkedIn is not very effective to get access to top talent. But good people know good people, even if they're not looking for a job. Getting an introduction through an employee produces 10x higher response rates compared to cold outreach.
Research shows that hires made through referrals both internal and external are more likely to stay at the company for 2 years, advance their career faster, and are more likely to be top performers.When new hires are unsuccessful at their job, it's often due to mismatched expectations about what was required to be successful in the role. Fortunately, an employee referral can help you avoid signing people up for jobs that they didn't want to do.
What better way to show the world you care about your employees and community than by giving back to them when they help your company? Your employer brand is shaped by the people that talk about you. Now you can give everyone a reason to tell their friends about the great opportunities at your company.
Referrals are very empowering for your employees. It gives them a sense of ownership on the outcome of the company, creates a stronger bond between employee and employer, and gives them the freedom to surround themselves with people they respect and love to work with. The Monday after you get your friend a job at your company, you're going to be excited to come in just because they work there now.
We always love to hear referral stories OR creative ways to spend that sweet referral bonus… I do steak dinner for my referrals and whoever contributed to the introduction. If your company doesn't have a referral program, and you're interested in setting one up, check out our post on how to do that, or schedule a free consultation and we'd be happy to help out!