There’s a fast track to getting hired these days and it all lies in the hands of your friends and family. These days, a referral from a friend or family member has a better likelihood of getting job seekers hired than submitting their resume through a hiring manager’s email where it will probably stay for quite some time. The numbers don’t lie. A recent study from a large company conducted by three economists from the Federal Reserve Bank of New York found that referred candidates that make it to the interview stage have a 40 percent better chance of being hired than other candidates.
Relying on internal referrals for job candidates has been a recent trend because of increasing use of sites like LinkedIn that can connect employers with the right candidates through employee networks. It also saves employers time and money. There’s less time sifting through resumes from unknown candidates and less money spent on job recruiters. It also benefits employees. There are often cash incentives for referrals. Other companies are taking it one step further by offering their employees prizes. Enterprise Rent-A-Car and Deloitte are giving away iPads and large screen TV’s for new hire referrals.
The Federal Reserve Bank of New York study also found that referred employees are less likely to quit. They are happier, more productive and integrate into the company culture better than other employees. This means that job seekers can not only find themselves on the fast track to a new job, but a job that they are more likely to be in for the long-term.
Even though internal job referrals are being increased in companies, they aren’t taking over the job recruitment landscape entirely. There can be negative long-term consequences from relying too heavily on internal referrals such as having a lack of diversity in the office. The Federal Reserve Bank of New York study found that 63.5 percent of employees referred candidates of the same sex and 71.5 percent favored the same race or ethnicity.
The truth remains that if job seekers are referred internally by a friend or family member in the company, they are more likely to employed there. Job seekers should take note of this and use their networking skills to get their resume passed along to a hiring manager by a friend or family member. Their resume will be put on the top of the pile and will have a better chance of making it to the interview stage. Start making those contacts now and get yourself referred.
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IMAGE: Courtesy of Flickr by ShashiBellamkonda