Talent Mastery: “The Best Place to Find New People Ever” edition.

Talent Mastery: “The Best Place to Find New People Ever” edition.

To the Leaders, Innovators and Drivers of The Industrial Talent Community,

What if I told you there was a way to hire your next teammate 30% faster than through a job posting and nearly 50% faster than through your company website? What if these fast hires came with a lower cost than ANY other hiring source? What if these inexpensive fast hires also come through with a higher acceptance rate, a greater sense of belonging AND better cultural fit?

We’re not done yet…

What if these inexpensive fast hires with high acceptance rates and great cultural fit had a 45% retention rate after 2 years compared to 20% from job board candidates?

Sounds a little too good to be true, doesn’t it?

Well here’s another tricky secret of the talent world - the best approach can often be the least discussed because the “business of recruitment” has no way of getting paid for these. We’re going to fix that for you today.

If you’re new to our newsletter, welcome. And if you’ve been with us a while, welcome back.

Today we’re going to cover THE #1 recruitment tactic AND we’re going to share twenty five (25!) ideas to empower your team to root this deep within your playbook.

So what’s this overlooked process all about?

It’s about … Referrals.

Referrals? Referrals. The problem is most of your people don’t know who they know when you ask on the spot. The problem is you’re only looking at your employees for referrals and missing everyone else who comes in contact with your company.

The big problem with referrals is most companies don’t know how to get them. The real problem is that without proper attention, most people do what they’ve always done while still becoming frustrated when they get what they’ve always gotten. It’s going to take a bit of a strategy (and consistent effort) to turn this table so today’s letter has everything you’ll need to get started. We’re going to draw from a variety of industries, Fortune 500 companies and fast-growing tech and marketing firms.

We’re going to tell you exactly where to go. Let’s dig in.

1. Competitive Referral Bonuses

Flat bonuses get flat results - look to implement tiered referral bonuses to reward employees for multiple successful hires. For example, offer $1,000 for the first hire, $1,500 for the second, and $2,000 for the third within a fiscal year. LinkedIn, for instance, increased their internal referral rate to cover 44% of their filled roles with aggressive referral bonuses alone. If you’re paying 20-30% fees for outsiders to find your hires, it’ll pay to be generous with your insiders. A study by the Society for Human Resource Management (SHRM) found that financial incentives are the top motivator for employees to refer candidates.

2. Referral Programs for Non-Employees

Expand referral programs to include non-employees, former employees, clients and vendors, with separate incentive structures to reward outside support. Dropbox’s referral program increased sign-ups by 60% by incentivizing both current users and outsiders for referrals.

3. Tailored Incentives

Consider personalized incentives based on the employee's preferences, such as additional vacation days, remote work days, a special parking spot or a donation to their charity or children’s school of choice. This approach recognizes the diversity of your workforce and their different motivational drivers. When you initiate “pick a prize” rewards you may be surprised at what people actually chose!

4. Expedited Referral Process

Ensure that referred candidates are given priority in the hiring process with expedited reviews and interviews. This shows respect for the employee’s effort and enhances the candidate's experience. Your employees must be confident in your ability to act if they’re going to trust you with their network.

5. Transparent Communication

Keep referring employees informed about the status of their referrals through regular updates. Transparency fosters trust and encourages continuous participation. “Ghosting your own people” on their referrals is an effective way to discourage them from doing it again.

6. Referral Events

Host referral-specific networking events, encouraging employees to bring qualified acquaintances. Events could be industry-specific or more general, depending on hiring needs. This works well in tandem with any open houses, company events or trade school tours you have in your talent acquisition playbook.

7. Special Awards for Milestones

Recognize employees who reach referral milestones (e.g., 3, 5, 10 referrals) with special awards or recognition in company communications. This not only rewards but also publicly acknowledges their contributions. Successful referrals should also come with personal recognition from senior leadership.

8. Training Sessions

Provide training on how to identify potential candidates and effectively communicate the company’s value proposition. This empowers employees to overcome any hesitations to make more and better referrals.

9. Referral Nurturing Program

Implement a nurturing program for referred candidates who might not be a fit immediately but could be potential hires for future roles. This keeps a warm pipeline of pre-vetted talent as well as respects positive referral effort that may not match a current requirement.

10. Feedback Loop

Establish a feedback loop where employees can understand why referred candidates were or were not successful. When you’re referred to someone who isn’t right - use the opportunity to coach, train and ensure your people are focused on supporting the strength of their team rather than trading personal favors.

11. Gamification and Leaderboards

Introduce gamification elements such as points, badges, and leaderboards to track referrals. This can create a healthy competitive environment and keep employees recognized & engaged. Gamification has been used in multiple industries to increase participation in programs by making them fun & competitive.

12. Social Media Integration

Leverage social media platforms by providing easy-to-share job postings, referral links, and recruitment content. This arms your greatest advocates with the right tools. Great content exponentially expands the reach of your referral program beyond the immediate network of your employees.

13. Specialized Referral Programs

Create specialized referral programs for hard-to-fill or high-priority positions, offering higher rewards or unique incentives for these roles. Leaders should be encouraged (and rewarded) to ensure big priorities are fulfilled.

14. Referral Partnerships

Partner with professional associations or universities, offering incentives for referrals that come from these networks. This can tap into a wider targeted talent pool. Partnerships incentivize a network of “agents in the field” who are charged with gathering information on the best available resources.

15. Anniversary Bonuses

Offer bonuses or additional incentives on the anniversary of a successful hire, rewarding long-term retention and success.

16. Temporary Staff Referrals

Include temporary, contract, and part-time staff in the referral program, recognizing the value they can bring in finding qualified candidates. Allow referrals for not only full-time positions but also part-time, freelance, or contract roles. This broadens the scope of potential referrals to and from multiple areas outside of full time employment.

17. Referral Campaigns

Run periodic referral campaigns with time-bound incentives to boost program engagement and meet specific hiring goals. If you have several locations within your company network, you will drastically widen the reach of a referral program by generating opportunities across all sites.

18. Employee Recognition Programs

Integrate referral achievements into broader employee recognition programs, acknowledging contributions to company growth alongside other achievements.

19. Mobile-Friendly Platform

Remove any barriers or complications to collecting referrals. Ensure the referral program is accessible through a mobile-friendly platform, making it easy for advocates to refer candidates anytime, anywhere.

20. Continuous Improvement

Regularly review and adjust the referral program based on feedback and data analytics to ensure it remains competitive and effective. A strong referral culture compounds over time; keep refining & keep adding. A strong program will have a minimum of 35+% of hires through referral channels.

21. Referral Program Ambassador

Appoint a dedicated referral program ambassador or team responsible for promoting the program, addressing questions, and ensuring its success. People of influence must be empowered to drive your referral culture.

22. Customizable Referral Templates

Provide customizable email or message templates to make it easier for employees to refer candidates and communicate the company’s value proposition. A good script and a few key points will go a long way to eliminate any perceived awkwardness about asking for referrals.

23. Referral Program Onboarding

Include information about the referral program as part of new employee onboarding, encouraging early participation. This is also what’s known as the “honeymoon period.” Starting a new job is a time where people tell the most friends, family & associates about their new company and are in a perfect position to generate interest.

24. Success Stories

Share success stories of employees who were hired through referrals and the impact they have made, demonstrating the value of the program. This encourages the success of the program in the long term.

25. Annual Referral Awards

Make referrals part of your annual awards and be sure to recognize the top referrers, celebrating their contributions in a significant, memorable way.

Implementing these ideas requires a careful balance of incentives, recognition, and support to ensure the program is attractive while meeting the company's hiring needs. Regular assessment and review of the program through feedback and performance metrics will be important for its long-term success.

If you're eager to further explore how winning teams are attacking the talent market, I invite you to explore our in-depth research on "The 5-Stage Industrial Talent Attraction Formula."

Inside, we’ve built a comprehensive blueprint for assembling & maintaining a high-performance team that aligns with your vision and goals. It’s a valuable resource that’s taken 5 years to develop; get your copy today and join us on the journey toward hiring excellence!

About Chris Pepin

Chris Pepin is the founder of Progressive Reliability, a manufacturing talent & consulting firm. Prior to ProReli, he served as the Founder & Managing Partner at Magnanimous Consulting, where he built & stabilized teams for mid to late-stage venture-backed data & analytics software companies. Chris initially acquired his passion for talent & consulting as the Lead business developer for The HCI Group, a healthcare company he helped place as #3 on the INC5000 list of fastest-growing companies in the U.S.

Chris graduated from Florida State University with a BS in Business Administration, with a focus on Entrepreneurship. He serves as a College of Business mentor at his alma mater, and also mentors youth through his involvement in Big Brothers Big Sisters of America. Progressive Reliability is a proud supporter of veterans through K9s for Warriors and Chris is a former board member of Operation New Uniform.