Why are your employees not referring their friends?

Some 2,000 years ago, Julius Caesar was at his wit’s end. He was desperate. He needed more troops. So, he offered all his remaining soldiers the equivalent of 4 months’ pay for every person they recruited to join the Roman army. Even if the new recruit was killed in battle within the first three months, which was very likely, the reward was still honored. This may be the very first employee referral scheme on record. And we’ve been utilizing it ever since.

?"Referrals are widely regarded as one of the best sources for recruiting new team members. "

Referrals are widely regarded as one of the best sources for recruiting new team members. Even more so when the referrer and candidate know each other well. Referred candidates usually have a much better understanding of the prevailing workplace culture, the team, and management because of their relationship with their inside contact. This ‘insider information’ allows them to make an informed decision on whether the job opening is a good fit for them. Moreover, employees will only refer someone they believe would be a good fit for the team too. And research has shown again and again that employee referrals result in better hiring outcomes. They typically take much shorter to hire, are significantly cheaper to hire, stay longer, perform better, and are more engaged.

And like signing bonuses (see my previous newsletter), many employers also have incentives whereby current employees are encouraged through monetary rewards to refer qualified candidates for jobs in their practice or hospital. Given how challenging recruiting veterinarians and licensed veterinary nurses have ostensibly become, the size of these bonuses has spiraled upwards quite significantly in recent years. For not a lot of effort, employees can earn a significant bonus with the added benefit of getting their friend an amazing job too. Everybody wins!

But why does it feel like your employee referral program isn’t working well? When you have a new opening, you hardly get any employee referrals. In fact, it seems like none of your team members are referring their contacts for jobs at your practice at all. If you’re recruiting and your employees aren’t sending you their friend’s resumes, it’s worth finding out why.

Of the 2474 veterinary surgeons and 1075 veterinary nurses who completed the British Small Animal (BSAVA) and Equine (BEVA) Veterinary Associations’ 2018 Recruitment and Retention Survey, 35% and 37% (respectively) reported that they found their current job through an employee referral. Anecdotal data from the US (2021 NAVC Survey) and South Africa (GuavaVet Survey 2021) suggest between 20% and 30% of respondents found their jobs in this way too. That’s a significant number of job seekers.

Unfortunately, no survey data exist that show the percentage of job vacancies filled through employee referrals. But, given that between 75% and 85% of employers who participated in the surveys I referred to earlier responded that they found it difficult or very difficult to recruit veterinary surgeons and registered veterinary nurses, it is most likely to be not many at all. What’s more, survey data of close to 2000 veterinarians and vet nurses from the UK, Australia, and South Africa gave their employers a net promoter score (eNPS) between -6 and +7 (Onswitch UK and GuavaVet 2021). Given that an eNPS of above 10 is generally regarded as a good result and anything above 50 as excellent, there certainly is much room for improvement.

eNPS UK Courtesy of Onswitch UK Ltd        

eNPS South Africa courtesey of GuavaAi Ltd        

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If your employees are not referring their friends and contacts for jobs at your practice it’s usually either because they don’t know to, or because they don’t want to. And them not wanting to is by far the most important of the two. Employee referrals are generally regarded as a litmus test of your employer brand. If your practice is not a good place to work, your employees will not suggest to their friends and connections to work there. Especially not if they themselves are about to abandon ship! But, if yours is a workplace where employees feel valued, appreciated, part of a team with purpose, like volunteers who happen to get paid a fair salary for doing something they love, then the problem is more likely due to them not knowing to or not remembering to.

?"To be sure, the size of the referral bonus is not the reason why."

To be sure, the size of the referral bonus is not the reason why. Because that’s not why people make referrals. People refer people they like to help them get work at companies they like. No happy and engaged employee ever said: “I’m going to wait until the bonus is high enough before I tell my friends about this awesome job opportunity where they can work with an amazing team and a great employer.”

An effective employee referral scheme, therefore, depends on two things. Firstly, a healthy workplace culture in which employees will enthusiastically recommend you to their friends and connections because they feel valued, appreciated, and part of a team with a common purpose. And secondly, an easy, transparent, and straightforward employee referral program in which referring employees are kept informed, are appropriately rewarded, and given ample recognition by their employer.

"Employee referrals are the gold standard for hiring new team members. "?

Employee referrals are the gold standard for hiring new team members. And every veterinary practice should have one. An effective employee referral scheme doesn’t need to break the bank. If you find that your employees are not referring their friends to come and work for you, try finding out why before you resort to upping the bounty.

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