A Secret Strategy to Hire Better/Faster, Engage More and Retain Longer

Last summer I was approached by a recruiter about an incredible role and it got me thinking about a friend who I thought may be a great fit so I called him to ask if I could refer him to the recruiter.  

I did and advocated for the consideration of another friend she’d also called. Why!?! Because I believe in karma. 

Fast forward to fall – the friend I referred has relocated and started in the role. It’s funny how freewheeling and fast it moved. Isn’t that how works - it’s not what you know, it’s who you know! 

Just last week a good friend and recruitment leader told me that they don’t hire applicants. It’s passive candidates we want.

A Few Hiring Stats

Still, we make sure that openings are picked up by all the aggregators and we invest time and money to make sure our openings come to the top of candidate searches. To what end?

• We are spending on average $3,000 to $4,000 or more per hire. 
• We are alienating applicants – Jobvite says there are 59 for every hire. I’ve also seen 100 and 250 per hire.

Let me get a little crazy with other data from Jobvite:

• Internal hiring is 6 times more effective than all other sources of hiring. 
• Referrals are 5 times more effective than all other sources of hiring.
• 46% of employees hired through referral programs stay for three years or more, while only 14% of those hired through job boards stay.
• Referrals are hired 55% faster than those hired through a career site.
• To get quality referrals, 64% of recruiters report awarding monetary bonuses as incentive.

Add to those stats, top trends from Deloitte’s 2017 Global Human Capital Trends Report:

• High-performing organizations operate as empowered networks, coordinated through culture, information systems, and talent mobility.
• Leading companies are moving to overhaul their career models and L&D infrastructure for the digital age.

Leaving Talent "On the Table"

And an article from Harvard Business Review titled “Having Work Friends Can Be Tricky, but It’s Worth It” which states:

… people who have a “best friend at work” are not only more likely to be happier and healthier, they are also seven times as likely to be engaged in their job…. have higher levels of productivity, retention, and job satisfaction than those who don’t.

Given all that, I propose that we would be well served to reward employees for referring their work-friends, teammates, direct reports, bosses, partners, and peers within our very organization.

Thanks for reading. Have a great day!

Oh, you’re still here? Why would I suggest that? 

I suspect that we are leaving talent “on the table” or worse yet driving it out by not reinforcing a culture that reflects an empowered network and talent mobility. All while lamenting the challenges of hiring for cultural fit. Because if internal hires are 6 times and referrals are 5 times more effective, then selecting internal employees who were referred must be 30 or 6 to the 5th times more effective. Don’t quote me on that math.

Is this Guy High? Yes!

If people with friends at work are more engaged, productive, and long-lasting, then we should reward internal friendships. Empathy is hot right now. Thankfully! Reward employees for looking out for one another. Empower people to treat coworkers how they want to be treated and to feel part of growth and success.

If I can get a high from being part of helping a friend get a great position at another company, how much better might it feel when encouraged and rewarded to help a friend within my own organization? 

Incenting employees to make internal referrals may open doors, conversations, and careers not otherwise considered while strengthening your employment value proposition or brand. Put your money where your mouth is to make the most of your talent – you may find that the many results are priceless.

This is also published on RecruitingDaily.com