With employee referrals being implemented across many organisations in recent years, we are exploring the pros and cons of this recruitment tool, and if this strategy could help or hinder the search for your next employee.

Pros

Faster hiring time

Screening and shortlisting candidates, as well as arranging and completing interviews can be a lengthy process for a business. Connecting with qualified applicants through your existing employees can save much of this time and lead to a more efficient hiring process.

Potential to improve retention

Referred candidates could be more likely to stay with a company longer as they are already familiar with the company culture. Having someone they already know within the organisation also helps to create a positive welcome and initiation.

Making your current employees feel valued

Asking your existing employees for referrals shows them you trust them to find high quality candidates through their network. This will boost morale and show you value their input.

Cons

Biased recommendations can affect candidate quality

Whilst many employees have genuine intentions when referring applicants, there is always the risk that a referral will be made because they want to work with a friend or simply for financial gain. These candidates may not possess the right skills and knowledge for the role and may have a negative effect on the team and their productivity.

Decreased diversity amongst workforce

Employee referrals can lead to a lack of diversity within the workforce as employees tend to refer people similar to themselves in terms of background and experience. Whilst this means they can complete the tasks the job requires, you could be missing diversity in character, skillset, and values.

Less stringent recruitment process

During the regular recruitment process, candidates would need to pass a rigorous qualification and interview process. This might not always be the case when it comes to employee referrals. This can lead to a poor-performing candidate down the line.

So, whilst employee referral schemes have their place, they are not foolproof. Using a recruitment agency, like Workshop Recruitment that screens, tests, and qualifies candidates in line with the skillset required and the company culture will ultimately give you access to the best possible candidates for your business.