Every second recruiter says that referrals are the leading source of quality hires, especially when it comes to hires sourced on LinkedIn.
LinkedIn Referrals (today a part of LinkedIn Talent Solutions) is the functionality that helps employees better understand which candidates they should refer for positions, as well as find and hire top-performing candidates.
Let’s explore how any Human Resource Department can benefit from having your current employees refer highly prospective candidates and how you as a recruiter can automate a good part of your day-to-day candidate-seeking activities.
What is Employee Referral?
An employee referral means a prospect for the position gets referred either by one of the current company’s employees or a connection in the staff’s LinkedIn network.
How does it differ from the traditional job application process?
As opposed to the traditional job application process, the referrer (not a jobseeker) is the one who submits a candidate’s resume. They recommend a person as a good fit for the job opening.
In fact, the process of referring a candidate to an open role can be organized in two ways:
- Informally. Staff members private message one of the HR department members with an informal recommendation.
- Formally. In this case, a company runs a dedicated employee referral program and encourages staff to recommend prospects.
Advantages of LinkedIn Referrals
As current employees know the best about your company’s values and culture, they are likely to recommend candidates that share the same values but are competent. The significant benefits of employee referrals are as follows:
Cost and Time Efficiency
Candidate search, nurture, and attraction can zap much of your staff and budget resources. Compared to the traditional hiring process, employee referrals are found to be a faster and more affordable means to fill an open position.
Referrals help guide your recruiters to the most high-scoring candidates and save them from spending time on sourcing.
More Qualified Candidates
It’s human beings’ nature to seek growth opportunities. Your employees want to work with the best, i.e., they will only recommend candidates who can improve the recommender’s day-to-day work routine and workload.
For you as a recruiter, such candidates should top the list of the most promising professionals for an opening as personal recommendations from trusted sources often provide the most reliable information.
Higher Retention Rates
Referred employees are likely to have higher retention rates as they personally know other company employees and are more personally attached to the workspace.
The process is a win-win both for the referrer and referee. The first-mentioned will feel more valued by the company as their recommendations and feedback are taken into account, and they can become even more dedicated at work.
Drawbacks of LinkedIn Referrals
As any activity has its pros and cons, let’s cover some of the disadvantages employee referrals can have:
Biased Recommendations
If your company provides employee referral bonuses, the motives can become purely material, i.e., employees can recommend candidates despite their qualifications just to receive some perks.
Besides, some may feel the urge to help out an unemployed friend to have more fun at work or for some other personal reasons. A misconception can guide such referrers that if they give a friend quick coaching, the referee can get the job and improve their skills at the site. Such a misthought not only can lead to hiring the wrong candidate but influences the referrer’s job performance negatively.
Losing Referrers and Referees
When employment becomes personal, employees that leave for personal reasons or new job opportunities can make away with their friend staff members. Besides, in the case of being key employees, having a number of valued fiend colleagues who will follow suit can be used to manipulate management decisions, wages, etc.
To avoid that, the company should ensure that a referee does not remain connected to the referrer only but adopts company values and gets connected to the business more closely.
Possible Tensions
Occasionally, referrers can feel constrained to share their negative insights on the position of specific affairs related to a referee. For example, it can be no wage growth for the referee or promotion in favor of a different external candidate. Such tension can have a negative influence on both the referrer’s and referee’s performance.
Wrapping Up
Social hiring is picking up steam as employee referrals on LinkedIn have proven to be an effective means of finding and employing quality job candidates.
Have you already tested how effective referrals are?
With LinkedIn automation software, such as Linked Helper, you can build highly customizable templates and send InMail or email messages to your employees with open role descriptions and requirements. It will help your staff to use their networks to refer candidates they find the most appropriate for the opening. Read more.
Also Read: Startup Serai backed by HSBC, aims to be the LinkedIn of global trade
