From Handshake To Hired: How Warm Referrals Can Lead To Job Offers

I've written extensively about how strategic networking can propel your career forward, and I credit the late Tom Weston, who hired me as an ad agency account executive back in the 1990's, for making me realize very early on just how invaluable cultivating a strong network is to career success. Thanks to him, I learned how networking doesn't have to be "icky" nor "sales-y" and being authentic and seeking to give something of value to others first can not only be fun and fulfilling but also lead to connections and relationships that withstand the test of time.

Over the years, at least 80% of the jobs that I've landed, the projects that I've worked on and the clients I've worked with have been because I followed Tom's example of ABN (Always Been Networking). He also gave me the advice back then of "If this (whatever 'this' happens to be) doesn't happen, will someone starve or die?" and it's helped me stay Spock-like in the most high-pressure situations.

In a competitive job market, having a warm referral can make all the difference. When it comes down to two candidates with equal skills, the saying “the devil you know is better than the devil you don’t know” often rings true. Employers are more likely to choose someone they already have worked with or who comes recommended by a trusted source.

For instance…?

• Steve Jobs and Steve Wozniak: The co-founders of Apple started their journey as friends with a shared passion for technology.
• Bill Gates and Paul Allen: These childhood friends teamed up to create Microsoft, revolutionizing the software industry.
• Larry Page and Sergey Brin: The founders of Google met at Stanford University and combined their talents to build one of the world’s most influential companies.
• Mark Zuckerberg and Eduardo Saverin: Co-founders of Facebook, they started the social media giant while studying at Harvard.
• Evan Spiegel, Bobby Murphy, and Reggie Brown: Friends from Stanford University who co-founded Snapchat, transforming the way we communicate through social media.
• Reed Hastings and Marc Randolph: The duo behind Netflix, who turned a DVD rental service into a global streaming powerhouse.

In addition to the data that shows that candidates referred by employees are four times more likely to be offered a job compared to those who apply through job boards, in terms of talent acquisition and retention, here’s what the stats show us:?

• Increased Retention: Referred hires have a retention rate of 46% after one year, compared to 33% for those hired through other methods. Additionally, referred employees tend to stay 70% longer at their jobs.
• Cost Efficiency: The cost-per-hire for employee referrals is typically $1,000 less than other hiring sources.
• Reduced Turnover: Companies that hire through referrals experience up to a 20% reduction in turnover rates. Even when only 30% of hires come from referrals, turnover rates can still be reduced by 6%.
• Faster Hiring Process: Jobs filled through referrals are filled 55% faster than those filled through other methods.
• Higher Performance and Satisfaction: Referred employees are 25% more profitable and 18% more likely to be satisfied with their jobs.

So, how do you become a warm referral??

1. Network Actively: Attend industry events, webinars, and meetups. Engage with professionals in your field and build genuine relationships.
2. Leverage LinkedIn: Connect with colleagues, classmates, and industry leaders. Share valuable content and participate in discussions to stay on their radar.
3. Offer Help First: Be proactive in offering assistance to others. When you help someone achieve their goals, they’re more likely to return the favor with a referral.

Building a network of warm referrals takes time and effort- people first have to see you, then know you, then like you, then trust you, then buy from you- but the rewards are well worth it, so if you start building your circle of influence today, you’ll soon see your opportunities grow!

If you found this article helpful, here are other ways I can help:

• If you're a job searcher, I help people landing the right job faster, with no guesswork and less frustration.
• If you're a company that is committed to making sure that your employees land on their feet faster after a layoff, I offer outplacement and career transition services.
• If you're a startup that is looking to augment your in-house recruiting efforts but aren't ready to hire a full-time recruiter, I step in as an embedded recruiter so you can grow your startup team the right way.

Reach out to me on LinkedIn or send me an email at [email protected].