Comments on: Employee Referral Push Expands at Growing Texas IT Firm Improving Enterprises

By: Melissa Meeker

Melissa Meeker — Thu, 07 Feb 2013 19:13:48 +0000

From my perspective, focusing on the technology tool is less important (she said this is ONE reason) than what she says ‘feeds’ it. She has marketing programs, both internally (2 by Tuesday) and external (user groups) that are bringing in the contacts and referrals. Having exposure to around 3,000 technical people each year through a variety of programs is what to focus on.

By: Keith Halperin

Keith Halperin — Tue, 29 Jan 2013 18:58:43 +0000

@ Ziv Well-said.
I’m just speaking for myself, but I think there’d be great value in a company that (in addition to effectively creating and managing the technical aspects of an ER program) could also provide consultants to help the company set up or improve their ER program, or outsource it completely if that were best for the client. Furthermore, I think this create-, implement-, manage-, or outsource-operation could be effectively done not only for employers’ current openings but also to create pipelines for future/ongoing positions, which many companies would like to do, but rarely have the bandwidth or resources.

Cheers,

Keith

By: Ziv Eliraz

Ziv Eliraz — Tue, 29 Jan 2013 09:30:24 +0000

@Sean – it’s not that simple as connecting to you employees. If you can’t motivate them to act, you’ll be missing out on what’s in their head, that doesn’t go on linked in. Their linkedin connections are a great start, but without their input on how they actually FEEL about these people and their work performance, it’s just a list of contacts. Not to mention the contacts people have that are off linkedin (facebook, email, twitter, etc)

Having a tech platform doesn’t replace the human element, it just makes the process *easy*

The biggest problem companies have with managing their referral programs is that it’s not as easy as interfacing with a job board or an agency.

A tech platform (or at least a good one…) makes engaging your employees and your extended, trusted business network, as easy as uploading a job description to a job board.

By: Howard Adamsky

Howard Adamsky — Tue, 29 Jan 2013 05:15:49 +0000

“Finding bodies is one thing, she says.”

Finding bodies?

I wonder if I am the only person to find this phrase offensive.

Fascinating.

By: Sean Rehder

Sean Rehder — Tue, 29 Jan 2013 00:08:02 +0000

I think people are over estimating the difficulty on the “tech side” of building out an employee referral system/application. In my experience, the hardest part is finding a “human” resource to actually drive/own the program.

The only company I’ve seen really dedicate themselves (outside this article, and I’m sure they are others out there) is Facebook. Sitting down and getting names..and then acting on that information seems a no brainer…but few seem to do it in an ongoing/systematic way.

Want to kick start an employee referral program? Have your recruiters connect on Linkedin to all your employees…and then mine your now connected co-worker’s networks.

Some people hide their networks on Linkedin, but most don’t.

You can then filter your searches by their network and then by companies, skills, locations, etc. Then, include your co-worker in that active outward engagement for targeted talent.

This way, you don’t have to wait for referrals…your recruiting team can be the “call to action” or kick-start the program.

By: Keith Halperin

Keith Halperin — Mon, 28 Jan 2013 22:38:42 +0000

@ Todd: good to hear.

@ Fareed: Interesting and plausible figures. Where did you get them from?

@Everyone,: Anecdotally, ISTM that an ER rate of 40% or more is quite doable for larger companies if:
1) The companies don’t suck so badly that only the desperate would want to work for them
2) The powers-that-be aren’t so clueless as to *regard it as an employee’s “duty” and either don’t compensate it or do so at an almost insulting level, while often using 3PRs for hires.

As an aside, companies should get active buy-in from the internal recruiters, so that an ER hire counts as much as any other internal hire, and not regarded like an external 3PR hire. Otherwise, we’ll basically regard it with indifference if not opposition, because it doesn’t “help” us and may actually “hurt” us.

Cheers,
Keith “Looking to Help Set Up EmployeeReferral Con” Halperin
keithsrj@sbcglobal.net

*perhaps they should also ask employees (particularly in sales) to provide sales leads as uncompensated “duty”, too?

By: Jacob Madsen

Jacob Madsen — Mon, 28 Jan 2013 20:31:47 +0000

@Ziv
Indeed an extreme outlier example and to replicate probably both impossible and perhaps not to be advised to be done to that level.
For me this a story of inspiration and aspiration, not saying referral to be to that percentage but aspirationally around 50% or so. Much can and is done in respect to.driving up referrals and I suspect we will see this increase over the coming years wth rates of around 60% not being uncommon.

By: Todd Raphael

Todd Raphael — Mon, 28 Jan 2013 20:18:40 +0000

In this case, “Improving” doesn’t have 90% of new employees come via referrals — it’s really that 90% of total employees on the staff have come through referrals. In its early days, closer to 100% of new hires came from referrals as it was putting the company together and now it’s a lower amount. But, your point is still a good one.

By: Fareed Ansari

Fareed Ansari — Mon, 28 Jan 2013 20:14:29 +0000

90% of new employees from referral is approaching the cloning zone. 50% referral rate assures diversity necessary for new growth. 33% referral rate may be optimum split, with 33% direct (traditional) hires, and 33% contractor/virtual hires.

By: Ziv Eliraz

Ziv Eliraz — Mon, 28 Jan 2013 19:54:32 +0000

With all due respect… our advice regarding taking upon yourself to build your own homegrown referrals platform is “don’t try this at home”… This case study is certainly the exception and not the rule (hence they rightfully deserve an award!). However, companies with 90% referrals and their own budget and know-how to build a referral platform are the extreme outliers, not the rule – so it’s very misleading to use them as a role model and an outright mistake to try and replicate.

We’ve been working with many companies on referrals, and I can tell you that very few companies have the resources to develop their own platforms – and I’m not talking about 200 employee companies, but ones that are much larger…. It’s not just about money either – even if HR had the budget to develop their own platform, that simply doesn’t make sense compared to a vendor (yes, like us…) that builds a platform based on years of shared experiences of many, many clients…

Builder beware ;)

By: Jacob Madsen

Jacob Madsen — Mon, 28 Jan 2013 16:03:43 +0000

What a story and what examples, loved reading every word of this.
WOW and simply goes to show that there is more than words can describe power and opportunities in this. If they can so should more or less any company/org with approx 200 employees.

By: Todd Raphael

Todd Raphael — Mon, 28 Jan 2013 15:15:21 +0000

Quite a few!

By: Keith Halperin

Keith Halperin — Mon, 28 Jan 2013 07:31:00 +0000

Thanks Todd. Aren’t there companies with products and services to set up and manage the ER process like what Improving created on its own?

Thanks,
Keith