Referral recruitment

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Referral recruitment is a recruitment strategy that encourages employees to refer contacts for specific positions. It performs better than regular recruiting:

  1. Recruiting through 3rd-party recruiting agencies incurs a 20–25% agency finder's fee – which can top $25K for an employee with $100K annual salary. Referral recruiting can be free (or cost a fraction)[1]
  2. Candidates hired through referrals tend to stay up to 3X longer than candidates hired through job boards and other.[2]
  3. Employees whose contacts are hired tend to stay much longer, helping with overall employee retention.

There are disadvantages to putting too much emphasis on referral schemes, such as reduced workforce diversity and unfairness regarding other prospective candidates.[3] To combat these disadvantages some companies are opening up their referral schemes to external contributors. Not only does this help to combat the aforementioned issues, but it also increases the size of the network of potential referrers.

Referral recruitment program[edit]

Referral recruitment programs[4] rely on the principle of co-option while allowing people in the company referral network including employees to refer candidates to fill job openings. Online, they can be implemented by leveraging social networks like LinkedIn, Facebook, Google+, etc.

Some companies offer cash incentives or other perks for when successful hires are made by the company through this program.


  1. ^ Basu, Shatabdi (2016-11-09). "Does referral recruiting really work?". CareerBot. Retrieved 2016-11-09.
  2. ^ "Chatbot to Accelerate Referral Recruiting - CareerBot". CareerBot. Retrieved 2016-11-30.
  3. ^ Government, UK. "Employee Referral Schemes". Employee Referral Schemes. Department for Business Innovation and Skills. Archived from the original on 12 October 2010. Retrieved 28 March 2011.
  4. ^ "MyJobCompany - Chasseur de tête. Recrutement participatif - Cooptation".