What Is A Job Referral? 5 Facts About Referrals | AOLCC (2024)

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20/10/2017

Looking for a job can be a stressful time. It may be disheartening to check job boards, apply, and then never hear back. To beat this cycle, it’s best to use some different techniques to find employment, such as asking for a job referral. Statistics show that job referrals can be a great way to get hired, as most companies hire nearly 30 percent of referrals.

If you’re ready to step up your game when it comes to finding work, here are five things you should know about job referrals.

What Is A Job Referral? 5 Facts About Referrals | AOLCC (1)

1. What is a job referral?

A job referral is a technique job seekers use to get extra attention from an employer. The process involves asking someone to recommend you to the employer. You’re asking that person to write a letter recommending you for a position at their company. It will outline why you are a perfect candidate for the job. While you would usually ask for a referral from someone you already know who works at the organization, you can ask anyone you know who has a connection to the employer – for example, the golfing buddy of the hiring manager.

2. Benefits of employee referrals

Employee referrals often enable a person to get to the interview stage. Companies like referrals from employees as it can save them time and money. Statistics show that employee referrals can save a company over $7,500 per new hire.

Additionally, employee referrals are usually high-quality candidates. Employees are not likely to recommend someone they would not want to work with or someone they don’t trust to do a good job. Their own reputation is on the line when they vouch for someone. So, employers are often more interested in interviewing and hiring candidates that have been referred. Moreover, employees who have been referred to the company are more likely to stay longer.

3. Does a referral guarantee an interview?

A job referral does not guarantee you’ll get the job or even an interview. But it can help your chances. Many hiring managers see hundreds of resumes, and anything you can do to set your application apart from the rest is worth a try. One study found that only six percent of applicants have a referral. However, these applications result in over a quarter of hires. So, while there are no guarantees, having a job referral can make your application stand out.

4. How to find someone to refer you

If you’re not sure who to ask, consider all the people you know and the connections they have. Can you approach a former mentor and request a referral? What about a college classmate? You’ll also need to consider your contact’s influence in the company. What weight does their opinion hold in the organization? Some job seekers even ask social media connections. The key is finding someone who knows you well enough to vouch for you.

Related: A Beginners Guide to Networking

5. How to ask for a job referral

How you approach someone and ask for a job referral depends on your relationship. If you know them quite well and are very comfortable and casual with each other, you can use a relaxed approach to ask them if they could refer you. However, if you don’t know them very well or only professionally, you’ll want to be more formal in your request. Either way, you should make your request in writing. Let them know what position you’re interested in and why you believe you’re an ideal candidate for the job. Be sure to give them a graceful way to decline. For example, instead of directly asking for a referral, ask if they feel comfortable enough to refer you. In this way, if your connection doesn’t feel comfortable or that they know you well enough to refer you, you can maintain your relationship without too much awkwardness. After sending the message, you can follow up a few days later with a phone call. Don’t forget to thank them for their time and help.

Conclusion

Job hunting can be nerve-wracking, but it doesn’t have to be difficult. If you want to give your application a boost, consider asking for a job referral. Consider someone who knows you well enough to vouch for you at their company. Hiring managers are more likely to review your resume and qualifications if you’ve been given an employee referral.

At AOLCC, we’re dedicated to helping our graduates use their new skills in their dream jobs. You can read some of our graduates’ success stories.

With 50 campuses across the country and more than 30 diploma and certificate programs, AOLCC is the best choice for those wanting to take their careers to the next level. Why not contact an admissions advisor and find out if AOLCC is the right move for you.

What Is A Job Referral? 5 Facts About Referrals | AOLCC (2024)

FAQs

What Is A Job Referral? 5 Facts About Referrals | AOLCC? ›

A job referral is a technique job seekers use to get extra attention from an employer. The process involves asking someone to recommend you to the employer. You're asking that person to write a letter recommending you for a position at their company. It will outline why you are a perfect candidate for the job.

What are the facts about employee referrals? ›

General Referral Recruitment Statistics
  • Employers who use referrals have a 46% retention rate. ...
  • Referrals boost the odds of a successful job match by 2.6% to 6.6%. ...
  • 71% of employers see cash bonuses as the most effective employee referral incentive. ...
  • Employee referral statistics show recruiting costs $4,129 per hire.
Mar 7, 2023

What does a job referral do? ›

An employee referral is a recommendation of a candidate for a job opening by an existing employee or someone in the candidate's network. It's an endorsem*nt suggesting the candidate's suitability for the role, often part of an incentivized referral program.

What is good about employee referrals? ›

Firstly, they allow you to connect and engage with new talent at a lower cost than more traditional methods. In fact, studies have shown that an effective employee referral program can reduce cost per hire by up to $3,000. Not only that, but the time to hire also diminishes when recruiting referred candidates.

How powerful are job referrals? ›

As seen above, employee referrals are one of the most powerful tools in hiring potential candidates. They work because people trust each other! Trusting others is something we all have in common. We're willing to rely on their judgment and experience for things like whether someone is trustworthy or not.

How to use a job referral? ›

Best Practices for Using Your Job Referral
  1. Ask Permission First.
  2. Include Your Job Referral in Your Email and Cover Letter.
  3. Keep Your Referral Updated.
  4. Mention Your Referral in Your Interview.

What does "referral" mean? ›

the act of directing someone to a different place or person for information, help, or action, often to a person or group with more knowledge or power: The doctor gave him a referral to (= arranged for him to see) the consultant.

Will a referral get you a job? ›

A recent Jobvite article shared data showing that referred applicants are 15 times more likely to be hired than applicants who apply via a job board.

Do you get paid for job referrals? ›

For example, when it comes to large or Fortune 500 companies, there is often some type of compensation-based referral incentive which means, if I refer you and you get the job, I get paid. That referral incentive can range from $500 to $10,000 depending on the company, industry, and role.

What should a job referral look like? ›

[Colleague's Name] and I have known each other for [length of time] and I have been impressed with their skills and work ethic and believe they would be a great fit at [Company Name]. [Colleague's Name] has [relevant skills and experience] that make them an ideal candidate for the role.

What is a good referral? ›

A good referral has an immediate need, and the prospect is willing to accept a phone call from your associate. Even if the individual does not have a direct or immediate need, securing permission for your colleague to call gives the individual an opportunity to develop a new relationship.

Are referrals good or bad? ›

Higher Retention Rates For Referred Employees

According to Zippia, studies have shown that employees hired through referrals tend to stay with a company longer compared to those recruited through traditional methods.

Are referrals worth it? ›

Recent data suggests that employee referrals have more job satisfaction. These employees are staying longer at their positions than other hires. Since they've been referred by an employee, they already have the inner knowledge of the company's structure and work methods.

Why are referrals so powerful? ›

Improved customer satisfaction: Referral marketing incentivizes businesses to focus on providing a great customer experience. Happy customers are more likely to refer their friends, which can lead to a virtuous cycle of growth.

Why are employee referrals important to employees? ›

Finally, employee referrals can improve employee engagement and satisfaction. This is because employees who refer successful candidates are often recognized and rewarded for their efforts. This can help to boost morale and create a culture of teamwork and collaboration within the organization.

What are the statistics on employee referrals? ›

Key Takeaways for General Employee Referral Statistics

Employee referrals result in a remarkable 30% hiring rate, surpassing the 7% average from alternative methods. 84% of companies have integrated employee referral programs. Utilizing employee referrals can reduce hiring time by 55%, compared to traditional methods.

What are the advantages and disadvantages of employee referrals? ›

The Pros and Cons of Hiring Employee Referrals
  • Save Money. Hiring a referral candidate can also lessen hiring costs for your company. ...
  • Increase Retention Rates. ...
  • Cultivate Company Culture. ...
  • Biased Referrals. ...
  • Severed Relationships. ...
  • Relaxed Hiring Process.

What are the statistics on employee referral programs? ›

84% of companies use employee referral programs. Referral hires are 40% more likely to be retained after one year than non-referral hires. Referred employees are 18% more likely to be satisfied with their jobs. The cost per hire for employee referrals is typically lower than other recruiting methods.

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