Employee referrals are consistently proven to be the best source of new hires. According to a recent survey by CareerXroads, referrals account for 28% of all new hires, the single largest source. Job boards are number two and company career sites are number three.
Considering the massive amount of money spent on job boards, agency recruiters and other sources it’s amazing that the investment in employee referral programs is so low. There are only a handful of companies globally providing solutions to boost employee referrals and real innovation up to recently has been almost non-existent.
Last night I had a really interesting conversation with Connor Murphy of DataHug. DataHug is a “relationship search engine”. It integrates with a company’s email system to map relationships between people in the company and outside of it. We got around to talking about using it for referrals. Here’s how it could work…
An internal recruiter selects companies that are a potential source of new hires. This is standard practice. Using DataHug a relationship map is instantly created showing who in the hiring company knows people in the target company. DataHug shows not just that a relationship exists, but more importantly the strength of the relationship based on the number of emails sent and when they were sent.
In an instant, a recruiter would have a list of all employees in the target company that are known to employees of her company. This isn’t the same as connections in a social network. It’s much more powerful because it shows that they’re actually communicating, or not as the case may be. This could then be used by the recruiter to ask the right employees to contact suitable candidates.
There’s also huge potential for screening candidates based on the relationships they have with a company’s existing employees but that’s another blog.