I have often had success in hiring referrals.
As Dr. Kapper states consider a referral stipend. We do provide a stipend after 6 months of successful employment.
James,
That is a great way to prevent mass referrals. With the stipend delay, those making the referrals will want to refer only those who have a great opportunity for lasting success. This is also a cost effective method for recruiting candidates.
Dr. Patricia Kapper
Referrals can be a great way to find great canidates, it can also lead to conficts inside the company if you hire a referral and they have a falling out with the person who referred them.
Jason,
That is a risk that is probably worth taking. Referrals from employees are an indication to you that your employees recognize that this is a good place to work. That says a lot. They also will likely only refer those they know who will fit into your culture. I worked in a company which had a referral program and paid employees for referrals who were hired. That provides a nice incentive.
Dr. Patricia Kapper
Sara, i tend to agree with your statement. I am very cautious about referring someone to an organization unless I have first hand experience working with that individual. I only refer candidates who I have had first hand experience working with that individual. I have worked with numerous companies who obtained quality talent from employee referrals.
Rachel,
I, too, would be extremely cautious of those I refer. Those referrals are a reflection on me, and I would want to make certain they are absolutely top quality candidates. These referrals, however, can be a wonderful source of candidates for various positions within an organization. Even if th company has a referral program whereby those making th referral are paid a "finder's fee," it is still significantly less costly than paying a recruiter.
Dr. Patricia Kapper
There are pros and cons to referrals as there is with an outside recruiting company. In the past, I have been a referral for employment and I have also been the one who has referred someone. I weighed the pros and cons of working with a friend. I know my work ethic and I knew theirs. Having similar work ethics I knew our personal relationship would not interfere with our professional relationship. Referrals offer a wonderful opportunity for strong potential candidates if the person referring someone is a valued employee. I also agree that a company should use other sources for hiring.
Jeanine,
You make several valid points. It really is potentially a risk on the part of the referred as well as the one making the referral. If it doesn't work out, it can reflect badly on the one referring. On the other hand, if it does work out well, the one making the referral becomes the go to person for more referrals. A Similar work ethic is a great starting point for considering potential candidates. I totally agree that referrals should be part of several sources for recruiting candidates and not a sole source.
Dr. Patricia Kapper
