According to research, employee-referred candidates have a better chance of getting a job offer than those who were not internal referrals. 

Therefore, when a staff member refers a prospective applicant for a position, it can appear to be a good thing for the company. Staff members are not likely to put their reputation at risk for someone who would be a bad fit for the job and the company. Because these candidates tend to be such high quality, companies could also benefit from shorter and less costly hiring process. 

Despite an obvious upside, internal referrals don’t always result in good hires. Let’s take a closer look at the value of internal referrals. 

Favorability Bias 

Although a referred applicant may be more attractive than others in the same hiring process, hiring managers ought to be careful not to assume a candidate connected to an existing staff member will be the best hire. 

In particular, it is crucial not to skip standard background checks for referred candidates. Even though the referring worker might be a solid character, the reference check should not be skipped. Looking into every candidate’s abilities and background with objectivity is vital for continued success of the company, and for safety reasons. A skipped background check would not reveal an applicant’s violent history, which would definitely be a major red flag. 

Using the same process and analysis on a referred applicant isn’t only reasonable, it can also save the company from costly mishaps and incidents down the road. If hiring managers doesn’t use same standards for every applicant, the company might be accused of irresponsible hiring practices, especially if the once-referred applicant is involved in a serious legal incident. 

Capitalizing on Employee Networks 

Each employee has their own personal network. These networks have value, but only if the organization can effectively capitalize on them. 

Worker referrals can be extremely useful for bringing in top talent. However, participation in referral programs is often lower than employers would like, even with incentives for successful hires.  

One approach to support a worker referral program is to give feedback on referrals that are made. Too frequently, employees have their referrals essentially disappear into thin air. When the referral doesn’t get hired and the employee doesn’t know what HR thought of their suggestion, it can have a chilling effect on future recommendations. Simply giving timely and constructive feedback on referrals will encourage future participation. 

Another approach is to keep the program “top of mind” for employees. Think about discussing the referral program in detail as a part of your onboarding system. A great time to ask someone about their network is when they’re just coming off a job search, which usually involves a lot of networking. Hiring managers should also keep the program top-of-mind for staff members by talking about it in meetings and mentioning it in emails. 

Let Us Support Your Talent Acquisition Efforts 

At Jarvi Group, we amplify the talent acquisition efforts of our clients to provide them with top-quality applicantsContact us today to find out how we can support your company.  

Jarvi Group

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Grand Rapids, MI 49504


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