Misconceptions Your Boss Has About Employee Referral

Discussion between business people

Recruitment is a cumbersome process. One which involves many levels of interactions and interventions to be sure that your company has the right candidate suitable for the profile it is looking for.

Off late employee referrals are considered to be the most productive and effective method of recruiting tool. However, successfully running and implementing Misconceptions Your Boss Has about Misconceptions Your Boss Has About Employee Referral program includes several challenges, not the least of which is assuring employees to participate in the program.

In addition to that your bosses can have several misconceptions about employee referral program and hence these misconceptions have to be talked about and understood in an open atmosphere.

Here is a list of ten misconceptions that your bosses have about employee referral programs:

Employees are not interested in such programs

The truth is mostly opposite of what it is as employees tend to thrive in an atmosphere which is friendly and understanding. Engagement rate notches in an environment where employees tend to know each other and communication channel improves over time

Managers tend to be more biased

Work place is a place where being competitive is the key to success. Whilst it is true that in an otherwise different scenario a manager can be biased about one of his referrals but in truth he cannot afford the luxury to be biased as he has his bosses whom he needs to answer.

Also, managers very well understand that the level of scrutiny involved in an employee whom he has referred will be even more. It is natural to think that nobody would want to risk his or her reputation for the sake of blessedness.


Referring someone is a Time-Consuming Procedure

Many bosses tend to think that referring someone is a Time-Consuming Procedure involves valuable working hours being wasted. However, it is not true to the core as it generally depends on the manner in which your referral program is designed.  If it is incredibly easy for employees to refer others, then it can be a process that can be completed in a matter of few seconds.

Employees Referrals aren’t Reliable or Genuine

Employees Referrals aren’t Reliable or Genuine

It is commonly perceived that referrals as a recruiting source aren’t dependable, reliable and can’t be trusted to remain long in the business. But many repeated reference studies have conclusively proven that referral hires continue much longer than employees hired through labor boards or other recruiting channels.

Workers are the only ones who can refer someone

It is not true to think that workers are the only ones who can refer someone to the company. It is noticed that the referral program could expand to add vendors, spouses, customers and other stakeholders also to improve its range and reach.

Adding greater number of stakeholders at the referral program provides it a multiplier effect to the company by providing the company a larger selection of top-quality applicants to select from.

Employees need to be promoted for referring someone to the company

Bosses tend to think that employees need to be given some undue advantage or privilege in terms of them referring someone to the organization. However, it is untrue and does not hold any basis. Yes, most companies tend to compensate the employees should their referrals end up bagging the job. But it is never in terms of promotion.

In most cases they are monetarily compensated and that too after the referrals have completed their initial probation period deeming them fit enough to be in the company.

Employee Referrals aren’t a cost saver but yet another burden on the company

The significant truth is that employee referrals don’t lead to cost saving as incentives and other promotional stuff add up to greater price or a bare minimum similar price.

Implementing through employee referrals, tend to pay just about lesser than what it might cost to place an advertisement in the paper or employ an outside service to fill a job opening.

Not only this method is the most cost effective method, but the hiring can also be quicker helping the company save valuable resources and time in going through a lot of resumes.

Referred Employees tend to ask for more salaries

It is one of the biggest myths that bosses tend to have about referred employees. It is true that the candidates appearing for interviews tend to have a fair bit of idea of what the company can pay to them but it is not true that it will be significantly higher than the corresponding job available in the market in some other organization as most companies tend to have a range in which they tend of offer to employees irrespective of him coming through advertisement or being referred by someone in the company.

You either don’t need this program or Employee Referral Program is all you need

It is also not true that a company can do away with ERP or can rely solely on ERP to fill up vacancies. No program can give you cent percent results. Besides, the all or nothing perception can be detrimental to your company.

Although word of mouth is a good way or marketing but it is very slow and may not yield in satisfactory results every single time. Also, relying completely on advertisement may not always give you the results on time as the process of hiring will include layer of process to be carried out, right from reaching out to a marketing agency to advertisement and finally the recruitment.

Not to add that it will add to your cost as well. You need both programs to exist in order to find the right candidate in minimal time.

Employee Referrals Programs needs to be compensated heavily

Employee Referrals Programs needs to be compensated heavily

It is true that money is great motivator and the single largest factor why employees will take out time to refer someone they know can fit the profile but it is not the be all and end all.

Employee referral programs can help people get their friends work in the same environment as them not to forget the feeling of helping someone in the process which in this case would be both your team or company and your friend or colleague whom you have worked with. Compensations are normally holistic rather than extraordinary.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.