A survey released in April 2016 by Future Workplace and Nexxt indicates that employers prefer to hire people based on employee referrals versus more standard methods of the application process. While referrals don't necessarily replace having solid skills, dynamite qualifications or the right amount of experience, they do have distinct advantages over active job seekers.
One reason why employee referrals work is that people who refer others for positions have a vested interest in the outcome. The employee who refers someone else does not want his reputation tarnished by bringing a new employee on board who does not fit with the company culture. The other side of the equation is the candidate wants to prove his worth to the person who put in a good word for him.
This dynamic represents a disconnect between employers and job seekers. The survey indicates 71 percent of employers value employee referrals as the best resource for finding candidates, yet only 7 percent of job seekers think referrals are the best way to find a job. The survey examined the responses of 4,347 job seekers and 129 HR professionals.
Employee referrals lead to better workplace morale when a new person is hired. This is because the person who referred the new hire offers the positive reinforcement the candidate is a good fit. Plus, both people already have a good rapport and mutual respect through the professional relationship developed before they became co-workers. The positive aspects of the referral relationship spill over into a positive atmosphere at the office, which leads to better productivity.
Companies with access to employee referrals can find talent that may not be actively looking for a job. Passive job seekers already have a position, but they are open to new possibilities if other opportunities come their way. Up to 80 percent of HR professionals in the survey believe passive job seekers make more effective employees because they have more experience, possess better skills and take their careers more seriously. Another distinct advantage is these types of referrals already have solid employment.
Active job seekers, contrarily, are unemployed and looking for work. Unfortunately, people looking for work do not realize the advantage of referrals because just 47 percent of those surveyed felt that passive seekers had an advantage over candidates trying to find a new job.
The key takeaway from the survey is that employees should cultivate a network as much as possible because a referral can come from anyone. One suggestion is to start with people who do not have official positions within a company. Job seekers can find great connections at conferences, by meeting with former co-workers and when finding relevant people on social media.
Employee referrals are one way businesses mine for job candidates as opposed to going through traditional job postings. Workers should constantly look for ways to connect to people within their industry as a way to foster job security, career advancement and professional fulfillment.
Photo courtesy of Bruno Covas at Flickr.com
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