Just think…, how many people do you know within your industry?
Let’s say you’re in the mobile app industry and maybe you’ve been in the game for 5 years or so. You’ve worked for three small companies, and now you have your own business, and you are recruiting. Let’s say you know 75 people within the industry and you feel you could comfortably call on 15 as your closest ones.
Not bad going.
Now if a single recruitment agency could bring you 15 decent candidates with decent, relevant industry experience, you’d probably be pretty pleased. If it wasn’t for the slight rub that you’ve just paid the agent some big bucks for providing access to a talent pool you’ve already been swimming in for years.
Not great going.
Finally let’s take the idea to the next logical step. You might have a network of 75, of which you have 15 solid contacts. But wait, you have a team of 10 yourself now! What if they all have a network or 75 people each and 15 contacts too… That’s a network of 750 people with a pool of 150 reliable contacts.
Pretty damn good going.
Now I’ve obviously pulled the above numbers out of thin air but that does not diminish the point. I’m talking about employee referral program. You probably have a team full of (hopefully!) reliable and hardworking people. By tapping into that network, you can bypass the need for frankly antiquated recruitment agents and find your companies next big hire.
Candidate referral – all the pros. No cons.
Here’s the bottom line – studies have proven that candidate referral programs are cheaper, faster, more effective and better received than traditional recruitment methods, here’s why. 2016 Global Talent Trends report, prepared by LinkedIn, confirms that 21% of people who recently changed jobs first heard about the opening from current employee and almost 40% of candidates landed their new job thanks to a referral from somebody they knew in that company.
Pro 1: Pre- cultured candidates
This is an easy one to start on. Candidates have been proven to adopt cultures far quicker when they come in from a referral program. The reasoning behind this one is obvious in that it’s easier to get invested in a culture if you have a friend with you to help you adapt.
Pro 2: Decrease hiring time by up to 40%
Did you know the average time to hire a candidate through referral is just 29 days? That’s compared to 55 days if you go through job sites. It simply takes a massive chunk out of the process; reviewing CVs, screening candidates, mass interviews, all gone. Incidentally, by all accounts, this part of the process is also the biggest pain in the ass so you really should be jumping at the chance to skip it out!
Pro 3: Save money while you’re saving time
We already know that it costs around £5,000 to find a new candidate (Scary Maths). These costs include advertising the role, interviews, paying recruitment agents or recruiter’s website fee, on-boarding. According to a study done by Recruiter.com, the average cost of on-boarding a referral candidate is less than £1,000.
No matter who you are, that’s big savings.
Pro 4: Referrals bring in the big bucks
If it wasn’t enough that referrals cost a fraction to hire, on average, they also bring in 25% more revenue than candidates from traditional sources! Reported by The Alexander Group, it has been found that referrals have the added incentive of wanting to live up to a friend’s expectations alongside their employers. Add to this the fact that they feel more comfortable in their new role and you have a supercharged, eager to please candidate from the get go!
Pro 5: Refer, retain, repeat
Candidates who have been referred by a friend or colleague are far more likely to have already expressed interest in the role prior to their employment. This is often what leads to the referral in the first place. The upshot of this is candidate who comes in through a referral programme can be twice as likely to stay with a company for longer. According to the Jobvite index in 2012 46% of referrals are retained after one year, this compared to 33% from job websites and 22% from job boards or recruiters.
Talk about a no brainer…
The referrals don’t all have to come from your current team only; ex-employees, old colleagues, retired staff and clients can all provide access to a highly qualified pool of candidates. With the UK entering a recruitment pink (Brace yourself) traditional talent pools are about to become drier than the last watering hole in the Sahara, so referrals need to become a priority, more than ever.
And yes, you got me. I do have a solution – why on earth would I be talking about the problem if I had nothing up my sleeve to solve it?
Through a unique linking algorithm, candidates are referred to the Aspire platform by former colleagues, friends and HR professionals. This creates a deep and ever-expanding talent pool for you to utilize as you grow. The best thing about this talent pool is the bigger your company gets, the deeper the talent pool grows!
We utilise a combination of user incentives, referencing motivation platforms and automated system processes to ensure a strong network of talent.
Recommendations from existing clients are weighted differently to ensure that Aspire understands how candidates are relevant to your business. For instance, we know that an honest review from a senior executive of a company from similar industry will be worth more to you than a referral from a junior colleague in a completely different field. We know this and so we have built it into Aspire’s weighting algorithm.
Look, our ultimate objective is to make yours and candidate’s life easier. We know that referrals work magic. They are cheaper, more efficient and frankly better. We recognize this and have built it into our app. But we are an invite only application so if you want to see it for yourself, hop on over to our website (LINK) and request an invite today.
I mean, what you have to lose?
(Up to 78% more of your first-year hires if you continue to use recruitment agents… wink 😉)