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The Social Referral, by Bill Boorman

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This new whitepaper by Bill Boorman provides everything you need to know about employee referrals in the era of social networking.

Find out:

- 7 referral program killers to avoid
- What industry leaders do to drive referrals
- Why monetary rewards can have a negative impact

To download a copy of the white paper, visit: http://landing.rolepoint.com/free-rolepoint-employee-referrals-whitepaper

Veröffentlicht in: Technologie
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The Social Referral, by Bill Boorman

  1. 1. The Social ReferralA RolePoint Whitepaper by Bill Boorman
  2. 2. INTRODUCTION The fact that you are reading this paper means that you probably already recognize the benefits of leveraging an employee referral program for hiring. In May 2012 Dr. John Sullivan wrote in ERE about the top 10 benefits to referral recruiting: Hard data on the value and impact of employee referrals 1. Hire volume - Referrals are the #1 source in hiring volume. 1, 3 2. Hire quality - Referrals are also the #1 source for new hire quality. 1 3. Speed (application-to-hire time in days) - Referrals are the #1 fastest recruiting method (29 days for referrals, 39 days for job boards, and 45 days for career sites). 2 4. Average length of employment of all initial hires after one year (retention) - Referrals are #1 at 46% retention after 1one year(compared to 33% from career sites and 22% from job boards). 2 5. Average length of employment of all initial hires after two years (retention) - employee referrals are #1 at 45% retention after two years (compared to 20% from job boards after two years and 14% after three years). 2 6. Percentage of all applicants - Referrals are only 6.9% of applicants. 2 7. Percentage of all hires - 46% of all hires at top performing firms are referrals4, while for all firms, they range between 28%3 and 39.9% of all hires. 2 8. Applicant-to-hire ratio - Referrals are #1 and are hired at a rate of 1 out of 3 applications for top-performing firms and 1 out of 10 at average firms. Compare that to an average applicant to hire ratio of 1 out of 18 from all sources. 4 9. Cost per hire - Job boards hires cost on average $1,671 versus referral hiring costs of $2,306 (only $635 more). 4 10. Diversity impact - Despite the old myth that referrals have a negative diversity impact, referrals were #1 as the ‘most productive’ source for diversity hires, well ahead of major job boards, company affinity groups, and diversity career fairs. 31 Source — Staffing.org 20112 Source — Jobvite index 20123 Source — CareerXroads 2011 – 20124 Source — Dr. John Sullivan and Associates research 2008-2011When you look at the data, and it has been well documented, it is easy to see why there has been a clamor to implementEmployee Referral Programs. The most common way of doing this was to offer cash rewards for hired candidates introduced byemployees. Given the cost of agency fees, which average between 20 and 25%, companies could offer significant cash rewardsand still show a big reduction in the cost per hire. Attracted by this methodology, corporate companies set up schemes butreported problems with long term adoption. This paper will identify some of the barriers to widespread adoption and what canbe done to break them down.RolePoint Inc © 2013 1 The Social Referral
  3. 3. REFERRALS IN THE OLD SCHOOL The most common employee referral programs involve making open jobs visible to employees and asking forDefining referrals used to be simple; a referral was a recommendations. The process requires the employees torecommendation, and people only referred the people they provide potential candidate details, usually a resume orknew well and probably worked with. This was driven by LinkedIn profile, and to have gained permission from thememory, little black books and personal relationships. candidate to submit. Successful hires are rewarded withVolumes of referred candidates were low, but conversions cash payments, commonly after the completion of thewere high because employees matched on skill, experience probationary period. As payments are involved, there is aand knowledge, and were recommended as a fit in all these due diligence process to qualify for payment.areas. There were pros and cons to the old school methodology: Pros Cons - High quality candidates with a good fit - Low volume of referral candidates - Endorsed skill level and employability - Geared towards new starters - Employees accountable for candidate fit - Admin heavy systems - High level of employee influence with the - Time taken to complete most referral candidate programs - Low cost of referral hires (even after bonuses) - Due diligence of referral rewards - Low conversion ratio of applied to interviewed - Asking employees to have the matching skills and interviewed to hired of recruiters - Diversity - Speed of hire - On-boarding and new starter mentoring through friends - Opportunity to reward employeesRolePoint Inc © 2013 2 The Social Referral
  4. 4. The benefits to referral recruiting are undisputed, with the submitted information reported that it took 10.4 referralspros easily outweighing the cons, not least cost of hire. per hire, where as the other sources were in excess of 100.However, the low volumes of referrals means that even themost successful programs result in no more than 35% of all Given this data, which comes from a respected source ofhires. The 2012 research into source of hire in the US, research, it is easy to see why companies place ERPs at theconducted by consultancy CareerXroads, identified that center of their recruiting efforts, and that28% of hires among the 200 companies surveyed were the recommendations from employees provide the mostresult of referrals. The full data list is displayed in the chart valuable source of hire. The challenge companies face isbelow. finding new ways to increase the volume of referred candidates, maintain the quality of referrals and sustain theThe remaining 55% of hires were attributed to internal flow of referrals on an on-going basis.transfers and promotions. The other interesting data tocome out of this research is that the companies who SOURCES OF HIRE Referrals Job Boards Company Career Site Recruiter Initiated Rehire Social Media 3rd Part Recruiters Print ad OtherRolePoint Inc © 2013 3 The Social Referral
  5. 5. THE REFERRAL KILLERS and comments added etc. it is a common comment that “as much as I want to help out, I have a job to do.” The processIt is easy to see why the best referral you are going to get is behind the ERP needs to be simple and quick, enablingwhen the referred candidate is known by the employee and employees to contribute without interfering with the timethey have worked together. In our research in to how most available to do their real job. The more time involved incompanies employ traditional employee referral schemes, searching, matching, communicating with potentialthere is a big emphasis on asking new starters. A number of candidates, recruiters and admin, employees will be lesscompanies gave the example of sitting down with new likely to continue taking part. A successful ERP needs to bestarters during their on boarding with a blank pad and admin light and built with the employeeasking them to write down the contact details of former in mind.colleagues and friends who might be of interest to thecompany. The reason given for this is that new employeesare most forthcoming with names, and usually of former 4. Not Their Jobcolleagues. The new employees are also keen to impress,and motivated by their new employer. Logic also follows Whilst an accountant might know plenty of accountants,that as this candidate was successful, former colleagues will their main job is working the numbers, not recruiting staff.likely have a similar skill set and experience. The more the accountants are asked to be recruiters and exercise judgment over which candidates to submit, theI have been involved in trouble shooting employee referral less confident they are in taking part. The volume ofprograms that are not generating the expected results. The referrals can be a good indicator of staff morale and thecommon denominator in these programs is that the ‘not my job’ attitude, so where there is little buy in, whycompany offer large cash rewards, but are confused why refer? It can also be a result of employees lackingthis is not generating the volume of hires they are confidence in making judgment calls, linked toexpecting. When speaking to the employees about why accountability. When employees are not required to makethey are not taking a more active part in the ERP when the selection choices, ERPs go up.potential cash rewards are high, I have discovered that themost common barriers are: 5. Line Manager Buy In1. Accountability Line managers need to see the ERP as being important toWhen an employee makes a recommendation, they take a their team, and the most effective way they can recruit. Therisk on their personal reputation andthere is a risk that the communication of the ERP internally often focuses on therecruiters or hiring managers feel that their time has been benefit to the company and often misses out on thewasted. If the referred candidate is hired, there is the benefits to the individual employees of working with theadditional risk that the candidate will not work out, and will best people they can, and the part they can play in it. Wherealways be known as their ’guy’, particularly given any time and resources areis invested in getting line managerfinancial rewards they may have been paid. buy in, they are far more willing to include conversations about referrals in team meetings, one to ones and more. Where referral figures are included in performance2. Transparency reviews, then the ERP is kept front and center.This is probably the most common one. Where rewards forreferred hires are high, there is a high level of due diligence, 6. Uncomfortable Approaching Friends About Jobsas well as tax implications. Examples I have been given fornot paying the expected rewards are that the candidate Some employees feel uncomfortable approaching theirwas already known to the company and in the ATS, the friends about jobs with their employer and are unsure howpaperwork was incorrectly completed or the employee did to make the first approach. They also feel that it isnot upload a resume. Where there are cash rewards, there inappropriate to talk jobs with their friends, given theare plenty of reasons for saying no to a claim. The sense of confidential nature of careers. The best way to resolve thisinjustice proves to be a real cancer to many ERPs. To get an is to make the process easy and to offer training in theERP to work, the rules need to be transparent and designed referral process and the employer brand. Training andto reward rather than penalize. When the system is seen as development to support the ERP will lead to success, withfair and reasonable, employees are far more willing to take employees being more confident in having career relatedpart. conversations. Consider the training plan as part of the launch and on-going participation in the program.3. Time ConsumingTied in with rewards is procedure, and procedure can betime consuming when due diligence is a driving factor.Where resumes have to be sought, uploaded or submittedRolePoint Inc © 2013 4 The Social Referral
  6. 6. 7. Poor Candidate Experience THE SOCIAL DIFFERENCEWhen an employee reaches out to a contact, gains their Over the last 3 years, social networks have experiencedinterest in an opportunity and gets them to make an exponential growth. Employee networks have grownapplication, they have an expectation that they will be accordingly, offering access to structured career datatreated in the right way. Global consultancy business through sites like LinkedIn in particular, and unstructuredAccenture have adopted a highly successful ERP, which data through networks like Facebook. Employees areplaces candidate experience at the center. This is driven by continually adding new contacts and growing personala service level agreement which sets time-scales for the networks. Job posting tools that share jobs into socialreview of referred candidates and for feedback. Whilst networks are often described as social referral tools,employees do not expect every candidate they refer to get though this is an inaccurate and misleading description. Thean interview or a job, they do expect timely feedback and more sophisticated of these tools create unique links fordue consideration, and when this does not happen, the sharing that enable employers to identify which of theirreferred candidate will go back to the employee who employees originated the share. This is useful fororiginated the application. Negative feedback to candidate recognition and reward, whilst the practice of sharing jobsexperience will strangle any ERP initiatives. Recruitment in the wider network is to be encouraged in order to reachprocesses should be designed to operate referred job seekers who are browsing or using search engines tocandidates as a separate channel, with time scales for identify opportunities. Job seekers are increasinglyreview and feedback to both the candidate and the connecting with their peers in organizations they want toemployee who originated the application. work for. Encouraging employees to share jobs into their networks offers the potential to reach these connections, but it is only a chance. A direct message is always going to8. Forgetting the ERP prove to be more effective.Most ERPs launch with great intentions, publicity and A referral is best defined as a personal recommendationfanfare but after a few months, employee enthusiasm and from one person to another. The traditional referralparticipation weans. There is always a new initiative each highlighted at the start of this paper is a good example ofmonth, and referrals drop off the radar. This need not be this. The difference, though, between an old school referralthe case with careful planning. When structuring an ERP and a social referral is the potential depth of thestrategy, you need to think how you are going to promote relationship. All networks consist of an inner and outerthe program and keep it prominent in the thoughts of circle. The inner circle, in terms of referral, includes thoseemployees. These are some of the tactics companies have connections where an offline relationship exists based onemployed to keep the ERP current month after month, year work interactions and personal knowledge. The outer circleafter year. consists of those connections who have connected online through a shared interest, mutual connections or similar.- Weekly ’most wanted’ posters and communication This offers access to data for mining and matching, and- Weekly referral huddles and awards reach for personal messaging via an established connection.- Referral points and league table- Referral T-shirts (Rackspace use the caption: Takes one When you consider the potential reach offered by the to know one. Certified Racker Referrer) combined population of all of your employees who are- Weekly e-mail or newsletter willing to sign in to a social referral program, it’s easy to- Monthly referral picnic/party recognize the potential of operating your ERP around- Seasonal initiatives, Christmas etc social connections rather than personal address books, as in the traditional referral. The key here is to enable- Dedicated referral portal with alerts employees to weight the referrals they make, giving priority- Referrer awards and recognition to those in their inner circle whilst leaving the way open to- Accumulated points and prizes search all connections however distant for a skills and- Inclusion of referral data in performance reports experience match. The use of data mining technology- Hot jobs and skills lists enables recruiters to identify potential candidates based on- On-line referral badges skills and experience of any employee who permits access by signing up for the ERP.- Payment to a charity fund for hiresThese are just a few examples of how to keep promotingthe ERP by planning out an annual campaign with regularemployee communications. Celebrate successes publiclywith open recognition, plan for on-going communicationand get referrals on the agenda at every management andteam meeting.RolePoint Inc © 2013 5 The Social Referral
  7. 7. In order to make this method work employers need to: Social data for the U.S, According to SocialBakers.Com: - LinkedIn users: Mn 74,248, 222 Remove accountability for referrals - Facebook users: Mn 164,958,520 coming from social networks without personal recommendation. 71.82% 53.20% Use matching technology and alerts to advise employees where they can choose to pass on a referral with one click. 33.20% 23.94% Leave control of the message (and who to send it to) with the employee. LinkedIn Facebook Penetration of Online Population Provide reassurance that access to Penetration of Population personal social networks is for matching only and no data will be extracted or stored. WHAT DRIVES REFERRAL PROGRAMS Having studied successful ERPs, the most common denominator is a team of departmental champions outside Remove accountability for referrals of the recruiting team. The ERP team should be the ones coming from social networks without who drive the program, design rewards and build a personal recommendation. community of referrers inside and outside of the organization. The champions should be given the freedom to design the framework to get the most out of the ERP. Most companies designing a new scheme assume thatSocial referrals create pipelines, provided the matching offering cash is the main driver. We have found that morealgorithm is good, and the messaging relevant. often than not, the complications associated with cash, from due diligence to taxation, hinders wide scale adoption. It is better to let the employees determine their ownRELEVANCE OF REFERRAL MESSAGING rewards. These can be cumulative or instant. Small rewards and team rewards go much further than occasional cashThe difference between a spam message and a worthwhile payments.message is relevance. Job opportunities and contentshared by referral needs to be a good fit for the recipient, The other consideration in this is what to reward. Whilstand this means building confidence in the technology most ERPs reward hires only, is this actually what you wantbehind the ERP. Whilst potential candidates targeted by to be rewarding when there is only a 1:10 (or greater)the ERP do not expect to want or be in a position to apply, chance of success, followed by potential due diligence overthey also want to be able to identify why they were process and candidate ownership? The more successfulselected. No point offering a sales VP a job for a junior sales ERPs reward referrals rather than hires. This can be smallclerk. The relevance must be clear to avoid spam thinking recognitions or awards, or gamification, typically byand to stay connected. The frequency of messaging needs rewarding each referral with a raffle ticket for a big prizeto be left in the control of the employee to ensure buy in. such as a car. Getting rewards right for your employees is key, and you should never under estimate the power of reinforcing the desire among employees to get the best employees (and colleagues) into the company for everyone’s benefit. Public recognition and celebration can often go further than hard cash.RolePoint Inc © 2013 6 The Social Referral
  8. 8. The key drivers to success of a social ERP are: The key is interaction, rather than static. Target candidates receiving an e-mail want to be able to hit a link and access- Easy participation relevant content wherever they are.- Simple process- Non recruiter champions MOBILITY AND THE SOCIAL REFERRAL- On-going communications and visibility- Celebrations of success The term mobility refers to the way that the explosion in- Recognition of contribution the use of smartphones and tablets has changed the way- Transparent rewards program people do things. People message and respond in down- Automated matching time between work and personal commitments, and they expect to be able to interact instantly. In the past, online job- Relationship weighting search and email messaging was locked by the need to be- Candidate experience on a PC. For recruiting, this mostly meant messaging or- Feedback to referrer sending out notifications and waiting a minimum of 24 hours for some kind of response. Mobility has changed allIt is also critically important that employees can opt-in and this, with people using down times like when they areopt-out as they see fit. The technology aided social referral, commuting, on breaks and whilst watching TV in thewith the addition of a ranking feature based on relationship evening to check in with messages, updates and emails.(inner/outer circle) retains the benefits of the traditional They are on the move and want to be able to access contentreferral whilst adding targeted reach. The best of both easily, viewable on a mobile device. They dont want to needmethods. to navigate from page to page, and they want to be able to respond instantly. Responding by mobile device means thatThe next generation of social referral technology will add candidates are unable to provide extensive information,the facility for instant messaging and the micro job site. needing a one or two click expression of interest. This is ideal via social referral where the original profile canTHE MICRO JOB SITE be tagged against the unique URL applied to the job. When the target clicks their interest, the aggregated profiles usedPotential candidates want to see much more than job ads to match (such as a LinkedIn profile) can be imported fromwhen considering whether to register interest or apply. the user profile. Receiving the message on a device in yourResearch and results show that potential candidates want pocket will incur response times and conversions. Evento research opportunities before hitting the apply button. social media giant Facebook consider themselves to be aActive job seekers are suffering from application fatigue, mobile, rather than a social company, and any ERPafter spending time completing applications through the technology not built for mobile can be considered dated.employer ATS only to disappear in to a black hole and never Mobile referral technology, mobile landing pages, and pushhear back. Before hitting apply, job seekers want to be notifications to trigger referral messaging are all key forconfident that they have enough information to determine ensuring an effective mobile presence.that they have a reasonable chance of getting an interview.This means that they are looking to be able to find minimumrequirements easily, with simple navigation to findinformation on the job.For passive job seekers, a job description is not enough toelicit interest. They want to be able to see rich content intheir choice of media in order to recognize culture fit aswell as capability. The job micro-site should tell the storybehind the job, told in words, pictures and video, withaccess to contacts to ask questions and talk about acompany and an opportunity before they are willing to hitapply and jump in to the process. The micro-site needs tooffer social connections and the opportunity tocommunicate in the channel of their choice.When a potential candidate clicks on a link, they want toland on the job and find information and content easily. It isalso important to note that 75% of emails are opened on amobile device, which means any micro-site needs to beaccessible and easy to navigate across platforms. Mobilechanges the where and the how potential candidates wantto interact with content.RolePoint Inc © 2013 7 The Social Referral
  9. 9. Mobile data for the U.S. In 2012: Awarding points for activity and outcomes means employees can accumulate reward points to cash in against a series of rewards. Adding fun elements to rewards like spot competitions, bonus points for in demand people, and 4:1 48m vs 4.9m adding games like spin the wheel to win extra points or prizes keeps the attention on the ERP in a fun way. The best Smart phone owners vs computer owners iPhones vs Macbooks example of this I have seen is where employees achieving a certain number of points got the chance to spin the wheel, with prizes ranging from an old pair of jeans to beer for a year. A technical business in Boston had great success by 48% 50% awarding a raffle ticket for each referral. They held daily, of US mobile subscribers Growth in smartphone weekly and monthly draws to win spot prizes such as iPads own a Smart phone usage from 2011 – 2012 and Kindles. The end of the program was marked with a draw for a car. The draw was promoted with plenty of branded content, with ample communication over volumes and a league table. This resulted in over 30 hires of high profile IT professionals. The car was a great centerpiece, 91% 2013 and a small investment given the return. Plugging in to competition, fun and recognizing referral champions of Americans have their mobile surpass computers mobile device on 24/7 for internet access results in a community feel to the ERP, particularly when combined with other employer/culture branding efforts. CULTURE BRANDING AND THE ERP 1 in 7 16.9% When we talk referrals, we tend to automatically think that internet searches are black Monday shopping was this means enlisting the help of employees to share jobs conducted via mobile a mobile transaction with members of their network who have the skills to fit the opportunity. Increasingly companies are paying more attention to culture branding, using social media to provide a window in to their organization in order to enable potential candidates to elect in to connect and follow the 94% Only 20% company and opt out if there is no fit. Potential candidates of Smartphone users search are increasingly looking for more information on the real business services by mobile, of businesses have invested 90% have made a in a mobile device. values and culture of the company. This marks the shift transaction. from transactional recruiting on a job by job basis, to relationship based recruiting, with potential candidates wanting to get to know an organization before applying.*All data taken from www.Imomentus.com/Download Feb With so much noise in the social media content in the social2012. channels, it is easy to lose content and is hard to pinpoint target audience. Innovative thinking about ERPs uses the same data mining, matching and referral technology toGAMIFICATION refer content on a one to one basis to targeted connections. Personal referrals of content are far moreWhen we talk gamification, we often get the image of likely to be seen and opened, increasing appeal and cultureFarmville and other online games and game platforms. brand awareness amongst a network of people who rankGamification, however, is being widely adopted in to highly on the employability scale. Employability is based onbusiness practice. Awarding points for referral inputs and skills, experience, culture fit, location and other factors.outcomes encourage competition between employees and Content connects people with organizations, and referredteams. Online badges recognize contributions from all content makes sure that these are the right people to fillemployees, and can be tied in to social status and future requirements.performance review. The greater the recognition frommanagement, the more employees look to achieve thestandard. Competition is a big driver among colleagues andteams.RolePoint Inc © 2013 8 The Social Referral
  10. 10. POPULATING THE TALENT NETWORK THROUGH It is conceivable that as company talent networks grow,REFERRAL there will be a tipping point where there will be no need to search outside of this network, and every ’member’ willRecruiting, for the most part, has been transactional in the have a level of relationship with the company. Referralspast. Jobs got posted on static websites, job boards and present a great opportunity to build the talent network toprinted media. Applicants applied online and went to an this level.applicant tracking system, provided information, answeredquestions (with some killer questions) and uploaded aresume. Next step was a degree of selection interviewing. INBOUND REFERRALSOne of the applicants got the job and the rest got rejected.Records were retained for legal reasons, but mostly As much as your employees have social networks that areremained untouched, and each time there was a new job it full of potential employees, identified by data mining forwas rinse and repeat. Recruiting and applying for a job was targeted messaging, the reverse also applies. Individualswin/lose, pass/fail. interested in your company as a potential employer are connected with your employees. As a potential candidate,The problem with this methodology was that each time was getting referred has real benefits over applying througha whole new campaign, and those people who didnt get the traditional methods.job could be split in to two schools: - Referred candidates are prioritized for review and- Those who fitted the culture and had good skills, but feedback were beaten by a stronger applicant on the day. - Referred candidates avoid the ATS at point of entry- Those who were a poor culture fit, illegible to work or - Referred candidates come with a degree of unqualified/experienced against the skill set of the recommendation according to the level of relationship employees of the company. Adding a ’get referred’ button to jobs, career sites, contentThe growth of employer branding content created two new and social places enable interested parties to see how theygroups. are connected with the company in order to request a referral. This has real benefits to populating the ERP- Those who were interested in the company as a possible because the interaction is driven by candidates requiring employer in the future, but were not yet ready to apply. limited input and time by the employees. You also get to- Those who were attracted to the company but did not fit overcome the resistance some employees have over or have an interest in open vacancies. sharing jobs with friends because they feel it is intrusive.Companies recognized that potential candidates who fittedinto the last three groups formed the best collection of INTERNAL REFERRALSpeople to source from. They had all shown some form ofinterest in the company and could be tempted to apply When we talk about referrals, we are usually thinking aboutagain when the timing was right. This marked the external candidates, but the modern ERP has a big part todevelopment of the talent network. The talent network play in internal mobility. The CareerXRoads data for sourceorganizes connected people according to their profile, of hire featured at the beginning of the paper shows thatskills, experience and location in order to send them 55% of hires are internal transfers and appointments.relevant updates about jobs, culture, branding and content Internal mobility goes hand in hand with retention andin the channel of their choice. From the candidates point of employer branding. The opportunity for advancement isview this keeps them up to date with relevant information one the biggest motivators in joining a new employer. Theand job opportunities, and the company gets to keep their reality, though, in most organizations is that applying fortalent pipeline alive in advance of requirements. jobs internally is subject to internal politics, and not withoutThe evolution of the talent network brings a new dimension personal career risk. Sideways moves within anto the ERP. Employees can employ the same technology organization are also often dependent on noticing anand methodology to populate the network by setting opportunity on the intranet or notice board. Directprofiles for the types of people that would fit with possible approaches by recruiters within the organization are quitefuture requirements and asking employees to send out rare, meaning internal moves and promotions are usuallyinvites to join the talent network to their social driven by the company. Internal referrals, where employeesconnections, based on data mining. Recruiters can also can refer jobs to colleagues and refer them to hiringpopulate the talent network by adding a one click sign up to managers with a recommendation opens up internalall content and jobs. Joining the network needs to be mobility and have a big impact on the quality of hires.simple, with data coming from social profiles such asLinkedIn to keep messaging relevant. This results in every When facilities management giant Sodexo introduced theirupdate from the ERP presenting an opportunity to connect mobile app in 2012, more than 28% of candidates whowith potential future employees and to start engaging. The applied for jobs via the mobile app were internal applicants,more relevant content and jobs go to the right targeted resulting in 55% of their hires.audience, improving the culture and employer brandawareness.RolePoint Inc © 2013 9 The Social Referral
  11. 11. The mobile app delivers different content if you are a EXTERNAL REFERRALSSodexo employee, presenting all employees theopportunity to apply for jobs or refer colleagues. As mobile It is easy to think of the ERP being the domain of employeesadoption continues to grow, and mobility changes job current and past, but given the right marketing andsearch, so internal referrals have the potential to form a positioning, anyone with an interest in the business shouldcritical part of your ERP and make internal mobility a be able to join and benefit. People want to help friends andreality. contacts, and if a job is not of interest to them, why wouldnt they let a friend or contact know if you have made it easy to do so. External referral networks benefit from theTHE BOOMERANG COMMUNITY same gamification and recognition features as the ERP, although you might want to consider different content andMost people leave companies because the time is right for a different user experience. This can be controlled by filtersthem to take up a new challenge, or an opportunity at entry point on both web, mobile and mobile app entry.elsewhere is just too good to resist. Increasingly, companies External referrals may want more access to companyare recognizing the pool of ’good’ leavers as a great source information and different rewards. All shared contentof hire. They are known to the company, their skills are should contain a simple invite to join the talent network andtested, and they already have relationships and the referral network with one click. The big considerationconnections in the company. These connections can be here is communicating that you will not mail any one ofutilized to prioritize referrals and filter searches and their contacts, or scrape or store data. This will need morereferrals by: detailed explanations because internal employees will have a greater level of trust. Trust and transparency is the key- Internal candidates factor in gaining access to a network.- Ex-employees- External candidatesWhilst not all ex-employees will be ready to come back, thevast majority will have had a good experience as anemployee and would be willing to recommend you toothers. Since leaving, they will have added to their innercircle of social connections through new colleagues andcontacts. Invite all the good leavers to join your extendedERP because this gives you access to their social networks,and a recommendation from a leaver endorses thecompany as well as, or better than, one from an employee.CONTRACTOR NETWORKSThe world of work is changing, with more and more jobsmoving from traditional full time employment contracts tocontingency. Contractors are well connected with othercontractors of a similar type because of the transientnature of their work. Contractors have mixed experienceswhen it comes to their basic needs like finding interestingwork, getting paid correctly, accommodation etc.Contractors look to other contractors forrecommendations from peers. If you work with contractors,consider building a contractor referral portal. This couldinclude other services and recommendations useful tocontractors as well as open contracts, combined with atalent network, rewards and competition. This isparticularly valuable to third party contract recruiters whoneed the benefit of referral but have traditionally found ithard to maintain.RolePoint Inc © 2013 10 The Social Referral
  12. 12. SUMMARY 1. Referrals are changing, driven by social networking, online profiles and content marketing. The term ‘program’ suggests project or short term, when a real ERP should be built on creating different referral networks with different content according to status. 2. ERPs should be built around employees, taking into consideration their concerns in order to boost participation in improve the number of high quality candidates. 3. Access to networks and data mining means you can take a targeted approach to sharing content according to referral and reference. 4. Only part of the content is about the job. Employer and culture brand content creates brand awareness, and a talent network takes recruiting from transaction to relationship. 5. Rewards need to be transparent with simple rules, built around participation rather than hires, and gamification of the network will drive participation. 6. As relationships have changed, so referrals need ranking according to working knowledge. All referrals need timely review and reference regardless of suitability and accountability needs to be taken out of the referral process. 7. The networks, matching and messaging tech, combined with employer and culture branding initiatives can become your principle source of hire and populate your pipeline when you get your methodology, technology and messaging right. Now is the time to get serious about referrals.RolePoint Inc © 2013 11 The Social Referral
  13. 13. We are the complete sourcing platform, helping you attract top industry talent through your employees. www.rolepoint.com enquiries@rolepoint.com