• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

512-693-7132

Packages   About   Testimonials

Career Pivot

Career Pivot

Repurpose your career. Pivot now.

  • Get Started
  • Books
    • Repurpose Your Career
    • Personal Branding for Baby Boomers
    • Repurpose Your Career 2019 Book Launch
  • Podcast
    • Career Pivot Interviews
    • Interviews with Career Experts
    • Repurpose Your Career Audio Book
    • Repurpose Your Career Series
    • Becoming an Expat
    • Question and Answer
    • Other Topics
  • Blog
    • 2nd Half of Life
    • Career Success
    • Career Change
    • Job Search
    • Entrepreneurship
    • Social Media
    • Multi-Generational Workplace
    • Networking
    • Expat
    • Survey Results
  • Community
  • Resources
  • Expat
  • Contact

Get Career Pivot Insights

Employee Referrals – Your Ticket to Your Next Job [Updated]

Employee Referrals

employee referralsDid you know that employee referrals have become the most valued tool in hiring?

When I wrote this post in 2014, I  had just returned from speaking at the Career Thought Leaders Conference in Baltimore. The theme of the conference was “Framing the Future”.  A common theme throughout many of the presentations was that employee referrals are golden.

I wrote extensively about the value of employee referrals in my Targeted Job Search series on this blog. I wrote about continuously building your referral network so that you stay employed at companies where you want to work.

Employee Referrals – The numbers don’t lie!

Gerry Crispin co-founded a nonprofit, TalentBoard, to better define and measure the Candidate Experience. In his presentation, he presented some startling numbers on hiring and the effect of employee referrals that came from the Candidate Experience Award.

The Cande Awards process is a competition, but it is also designed to provide every organization that chooses to participate some confidential and specific feedback on how they can improve their candidate experience.

Gerry gave the following typical example:

  • 180 applications for every open position
  • 4 employee referrals will be submitted

Approximately, half of all candidates are screened out or deemed unqualified for the position which leaves:

  • 90 applications
  • 2 employee referrals

5 candidates will be interviewed including the 2 employee referrals.

The numbers do not lie. If you apply and an employee referred you for the position, 50% chance of getting an interview and you have a 20% chance of getting hired.

If you do not have an employee referral, you have a 3% chance of getting an interview and only 1.2% chance of getting hired.

Repurpose Your Career Podcast

Listen to the most recent episode

What this should tell you is that employee referrals are invaluable!

Note: These numbers are 4 years old. The numbers of applicants have increased every year so if you do not have an employee referral your odds have decreased.

The Employee Referrals Bonus

Employee referral bonuses have become common in a lot of corporations. Bonuses are paid if the employee refers the candidate before the candidate applies and the candidate is hired. Therefore, before you apply for a job online seek out a referral!

In 2009, in the depth of the recession, I was working for a sexy tech startup…and we were hiring. I had more candidates from the Launch Pad Job Club, where I serve on the board of directors, asking me to submit their resume. My first question was always:

Have you applied online?

The answer almost every time was:

Yes

My response every time was:

Next time, please send me your resume first and only apply when I tell you.

When to Apply

Due to the fact that they already applied, I was not eligible for the bonus and their application would not be seen as an employee referral. Not every employee referral program works this way, but most do.

I was more than willing to work for these candidates because of my position with the job club. Money was not what motivated me to help. Of the almost 100 resumes I received that year, and only one sent it to me first. As you could imagine, I received a $2500 bonus for that position but none of the other 99 were hired.

Whenever you find a position, work diligently to find a connection. If you are not sure how go back and read the following posts:

  • Building your Target List – The Targeted Job Search
  • Connecting with Recruiters – The Targeted Job Search
  • Build Your Referral Network – The Targeted Job Search

After you have found someone who is willing to make a referral, ask how you should proceed. They may tell you:

  • To apply online and fill in the field for the employee referral on the application. Many major employers now have a field on the application for referrals.
  • Send them your resume and they will take it directly to the hiring manager. Customize your resume using JobScan to compare your resume to the job description. If this is the case DO NOT apply until they tell you to apply.

When you do apply online, only apply to one job that you are the best fit for.

Risk Mitigation in the Hiring Process

The employee referral has become the most reliable method for hiring. It is all about risk mitigation in the hiring process. The two safest hires are:

  • An internal candidate
  • An external candidate with an employee referral

These two types of hires make up a huge percentage of all hiring. My guess is it is over 90% because internal hires are often never publicized.

When I entered the job market in the 1970’s the average person stayed with a company for 10 or more years. In 2016, the average employment tenure for men in the U.S. is 4.3 years. There is a lot more hiring today than ever before.

If you want to boost your chance to get hired, work diligently on building your referral network.

To read the rest of the Targeted Job Search series click here.

Marc Miller  

Like what you just read? Share it with your friends using the buttons above.

Like What You Read? Get Career Pivot Insights!

Check out the Repurpose Your Career Podcast

Do You Need Help With ...



 Job Search

Career Pivot/
Change

Career Success

Careers in the 2nd Half of Life

Social Media

Multi-Generational Workplace

Networking

Entrepreneurship

 

Category iconJob Search Tag iconemployee referrals,  job search,  Personal Brand

Reader Interactions

Comments

  1. Nigel says

    July 16, 2020 at 7:01 am

    The question that immediately arose in my mind was of the relationship between the prospective employee and the employee making the referral. How successful will this be if the two people are not well known to each other personally or professionally. Can such a referral be trusted if effectively they are strangers.

    Do you know this person?
    Oh yes we had an informational interview on Skype over a coffee !
    Yes but how well do you know this person and their work?
    (etc…)

    Reply
    • Marc Miller says

      July 16, 2020 at 1:10 pm

      These loose referrals are not going to get you the job but they will get you the interview.

      Reply

Trackbacks

  1. Here’s Why Career Switchers Have A Huge Advantage In This Job Market – Dr. Dawn Graham on Careers says:
    April 27, 2020 at 2:45 pm

    […] have a 50% chance of getting an interview and 20% chance of landing the job whereas for non-referrals that drops to a 3% chance of an […]

    Reply
  2. Why Your Online Job Search Strategy Is Failing You (And How To Fix It) – Dr. Dawn Graham on Careers says:
    August 2, 2020 at 4:05 pm

    […] to Career Pivot, referrals have a 50% shot of getting an interview whereas for non-referrals, that dro…. In fact, Jobvite shares that 40% of hires come from the referral pool, which is only 7% of […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Are you ready to take control of your career?
Are you ready to stop reacting and start planning what is next?

 

Join Career Pivot

For those who want to fall in love with their work again, redeploy their experience and skills into a new career, and prudently make a shift, Marc Miller’s strategic guidance is a pathway to success.

Kerry Hannon, author of Never Too Old To Get Rich: The Entrepreneur’s Guide to Starting a Business Mid-Life

Available on Amazon.com and other fine retailers

Blog Categories

  • 2nd Half of Life (93)
  • Becoming an Expat (15)
  • Career Change (32)
  • Career Pivot (31)
  • Career Success (94)
  • Entrepreneurship (21)
  • General (4)
  • Job Search (87)
  • Mult-Generational (17)
  • Networking (12)
  • Personal Brand (8)
  • Podcasts (209)
    • Podcast – Becoming an Expat (19)
    • Podcast – Career Pivoter (40)
    • Podcast – Expert (78)
    • Podcast – Other (17)
    • Podcast – Question and Answer (19)
    • Podcast – Repurpose Your Career Book (18)
    • Podcast – Repurpose Your Career Series (15)
  • Social Media (21)
  • Survey Results (16)

BoomerJobTips

A Baby Boomer Learning Community

Popular Posts

  • What If You Are Not Passionate About Anything? [Updated] (325,936)
  • Talents versus Skills – Do you know the difference? (119,101)
  • College Degree After 50 – Is It Worth It? It… (90,441)
  • What is Your Current Salary? How to Answer! [Updated] (52,613)
  • Are you a Multipotentialite? (50,040)
  • Perfect Fit for the Position? Expect to Lose! [Updated] (42,713)
  • How Long Will My Job Search Take? Longer Than You… (38,200)
  • Who is Really Making the Hiring Decision? [Updated] (26,420)
  • 3 Steps to Get the Hiring Manager or Recruiter to Respond (25,252)
  • Dealing with that Directionless Feeling [Updated] (23,439)
  • Facebook
  • LinkedIn
  • RSS
  • Twitter

© Marc Miller and Associates, LLC 2012-2019 ~ All Rights Reserved | A Standard Beagle Website | Read Our Privacy Policy and Terms and Conditions

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Find out more.