Employee referrals work!

A few weeks ago, I shared some of my thoughts about employee referral programs with the Canadian HR Reporter Weekly for an article they published on that subject. Some people think that when employers use employee referrals there is less diversity in the workplace.

In my opinion, even though “mid-forties, white male” still represent the largest portion of the workforce, the reality is that most people’s families and friends are quite diverse and that they know many professional, educated, trained, competent women and men of different backgrounds that they can recommend.

Some surveys suggest that candidates referred by existing employees often accept lower salaries than other candidates because they are already sold on the organization thanks to the employee who referred them. Well, my experience is that most of today’s organizations have set pay scales to take into account experience, education and skills. These pay-grids are used across the board in the same way for all the candidates with equal qualifications.

If anything, I’ve noticed that the fact that referrals are already familiar with the organization, its products, services, programs and culture, generally means that they fit in better and quicker and that they can be productive, faster. And, employee referral programs also benefit the existing employee because in most cases the employee receives a cash bonus for a successful referral.

Finally, it’s also a way for the organization to show its employees that they value them and their work and respect their recommendations. Overall well managed employee referral programs are worth having because they increase productivity from existing and new employees – they just work!

Recent Blog Posts

Hiring Executives in Canada: A Deliberate, Strategic Approach

We get it!  You’re running a not-for-profit or small to medium-sized business in Canada, and between wearing 47 hats, trying to remember what lunch is, and decoding your accountant’s emails, hiring an executive probably feels like climbing Everest in a...

Company Culture Starts at the Top (Yes, That Means You)

Walk into any workplace, and you can feel the culture almost immediately. Sometimes it’s warm, collaborative, and buzzing with energy. Other times, it’s... well, about as lively as a Monday morning before coffee.But no matter what the vibe is, one thing is almost...

Professional Recruitment Succession Plans: When to Hire Your Next CEO

Let’s be honest—CEO succession planning isn’t exactly the most exciting task on your to-do list, but it’s one of the most important. Whether you’re running a dedicated nonprofit in Canada, you don’t want to wait until your current CEO retires to start thinking about...

Creating A Positive Candidate Experience: Why It Matters

In the race to fill an open position, many employers focus so heavily on finding the "perfect hire" that they overlook one essential factor: the candidate's experience. Everyone who applies, interviews, or interacts with your organization forms an impression,...

When The Perfect Candidate is Not Out There, Who Do You Hire?

So, you're on the hunt for your unicorn—the perfect candidate who ticks all the boxes. But what if that magical person just isn't out there? You might need to rethink your strategy in today's competitive labor market. Should you focus on fit, culture, experience, or...