Candidate Referrals in a Tight Employment Market: Why Do They Improve?
Outside of your company, the generic numbers on unemployment appear to be positive. Job availability seems to be on the rise, and for candidates, the market appears to be improving. On the employer’s side, of course, this means tighter prospects and greater challenges when it comes to hiring and retaining talent. It’s an age-old reality; when the atmosphere favors candidates, the reverse happens for employers, and vice versa. So as your interviewees ask more questions and fewer candidates line up to grab a seat with your company, why do candidate referrals seem to spike upward? In quality, if not quantity, referrals receive a boost when the candidate market narrows. Take advantage of this tendency and keep a few thoughts in mind.
Where do disappearing referrals go?
Fewer people launch the search for a new job during positive markets, which means fewer people ask others to refer them. Referrals slow to a trickle when more workers are content with their personal status quo. But as a manager, referrals are your friend. They help you gain an important set of data points on candidates who otherwise approach the company as complete unknowns—face-down cards that could offer almost anything in terms of personality and work ethic. Referrals take much of the mystery and much of the risk out of the selection process.
More referrals mean lower reliance on cold applications.
Without referrals, recruiters can simply post jobs and hope for the best. They can cross their fingers and hope that qualified applicants decide to take action and submit resumes. Referrals provide a back-up – and often high-quality – source of potential employees. If you aren’t receiving them, consider asking for them. Encourage and incentivize employees to get their friends and family members to apply.
Frame referrals as a win for everyone.
Most people, when they take the time to think about it, WANT to provide referrals. They want open seats on their teams to be filled as quickly as possible. And they also want to work side by side with people they already know and like.
Work with a Top Recruiter in Scottsdale.
Need help getting the referrals that keep your hiring process moving? Contact the team at the ACCENT Hiring Group to get started on finding the best jobs in Scottsdale.