Jeff Weidner
Global Director Science Executive
Investors:
Jeff Weidner
Global Sourcing Science Executive
Kenexa, an IBM Company
18 years in Staffing Industry.
Specialties Include:
• Passive Candidate Sourcing and Screening.
• Penetrating Passive Candidate Talent Pools.
• Social Recruiting/Social Networking.
• Developing innovative ways to source and engage top talent
• Eating Dark Chocolate.
http://www.kenexa.com/events/connect2014
Harnessing the Power of
Referrals In Your Sourcing
Strategy
Jeff Weidner
Global Sourcing Science Executive
Why Employee
Referral Programs?
97%
Post, Search & Pray.
Engage Sourcing.
Deploy social media and
recruitment marketing.
And this works…
Most of the time.
But for how much longer…
Plan ahead
• When Post, Search and Pray fails.
• When none of the tools on your sourcing tool
belt seem to work.
• When all the social media and recruitment
marketing just isn’t getting to the hire.
You need a plan.
The Plan
The plan must include
Employee Referral Programs
97%
Post, Search & Pray.
Social Media, Video, Email, Pay Per Click, Youtube,
Facebook, Instagram, Boolean etc etc etc
Even when this works
It’s expensive, time intensive and requires
training.
Oh and did we mention it’s
expensive!!!
Businesses around the world spend
over $3,300 per hire on recruiting and
this budget has increased by almost 6%
in the last year.
Equates to about $72 BILLION/yr
Why?
• Lower CPH (Cost Per Hire)
• Higher Quality Candidates
• Lower Turnover Rate
http://www.newyorkfed.org/research/staff_reports/sr568.pdf
Why?
Relative to job board applicants,
referrals are more than twice as likely
to be interviewed and conditional on
interview about 40% more likely to
receive an offer
Information obtained from Federal Reserve Bank of NY 2013
http://www.newyorkfed.org/research/staff_reports/sr568.pdf
How?
Source for any job title, any industry
for any company anywhere in the
world more successfully.
How?
How?
Source for any job title, any industry for
any company anywhere in the world
more successfully.
How?
BY ASKING YOUR EMPLOYEES
FOR REFERRALS.
ASKING
• ERP Software Platform
• Automated Distribution
 Email updates & Internal Social Platforms
• Recruiters can ask
 Applicants and New Hires
ASKING
Recruiters
Most ask for referrals.
Most get 1 or 2.
Very few recruiters
get good referrals.
ASKING
They ask generic questions which do not generate a specific
answer.
They ask questions like:
1.
2.
3.
Can you refer anyone?
Do you know anyone that might match this skill set?
Do you know anyone that might be a good fit for this
job?
Best way to ask for a
referral
Don’t ask for a referral!
Instead establish that they know
people with the skill set you are
looking for. Then ask who they know.
In the weeds
Script: Ask for referrals
1. Would you agree that most (job title here) know
other (job title here)?
2. You’ve worked other (job title here) in the past and
probably have a few as friends that are (job title
here) don’t you?
3. Would you say you know at least 20 or 30 (job title
here)?
4. Great, who are the top 7 (job titles here) you know
personally?
In the weeds
Script: Call the referrals (Confidential)
1. Hi (Referral Name), My name is and I’m from (Company
Name) I was asked to approach you in confidence about a
(job title here) position at our company. In fact, you were
referred by an internal candidate who asked to remain
anonymous at this point.
2. If the right opportunity were presented to you, you would
at least be open to hearing about it wouldn’t you?
By the numbers
Target 30%
30% of all hires should come from Employee Referrals
Best Chance of achieving
•Lower CPH (Cost Per Hire)
•Higher Quality Candidates
•Lower Turnover Rate
Estimated that every employee knows
at least 7 people that are qualified for
open positions at your company.
By the numbers
Under 30%
You will notice most likely notice
• Lower CPH (Cost Per Hire)
But these will have slower realization
• Higher Quality Candidates
• Lower Turnover Rate
(These are Metrics and Time based)
By the numbers
Over 30%
You will notice most likely notice
• Lower CPH (Cost Per Hire)
• Higher Quality Candidates
• Lower Turnover Rate
By the numbers
Over 30%
But it may come at a higher cost. As the percentage
concentration of employee referrals increase the candidate
pool may be diluted in unforeseen ways.
•
•
•
Organizational culture may have negative impact.
Diversity slates may get skewed towards under or over represented minorities.
Open door to nepotism or favoritism in future promotions, raises over peers,
other system abuses.
By the numbers
Hires by Source
Direct Sourced
20%
20%
10%
20%
30%
Employee
Referrals
Job Boards
SEO/Internet
Social Media
Best chance of success
• Set your Goals:
10% is a good starting point, moving to 30% over time.
• Automate the process
Consistent messaging, consistently promoted, distributed, shared.
• EVP and ERP are perfect together.
Employee Value Proposition and Employee Referral Program should
be integrated
• ERP and ATS are a match made in heaven.
Have referral candidates apply directly in to the applicant tracking
system.
Best chance of success
• Make it Social.
Tap into the Employees relationships and go from 7 to 1 to 49 to 1.
• Incentives work
but they don’t always need to be Pay to Play. Recognition, a special
thank you,
• Track your metrics.
Cost per hire, Time to Fill, Length of Employment, Employee
Promotions, # Employee Raises, % increase from Start to Current.
Compare to other sources of candidates.
Jeff Weidner
@SourcingScience
Kes Thygesen
@RolePoint
kes@rolepoint.com
http://bitly.com/ibmconnect-2014
http://bitly.com/ibmconnect-2014
http://bitly.com/rolepoint2014
http://bitly.com/rolepoint2014
http://bitly.com/ibmconnect-2014
http://bitly.com/rolepoint2014
THANK
YOU
THANK YOU