Fear of referring? What ruins employee referral programs

Fear of referring? What ruins employee referral programs

Americans have a great term for this: "referral-killers." In our context, we have to be a bit more descriptive: anything that undermines a good referral program. If the flow of applications and the number of employee referrals don't meet company expectations, the first step should be to refine the recruitment processes. However, success or failure is often determined not by the user interface, the size of the rewards, or the frequency of emails, but by what is going on in the mind of the potential referrer.

1. "I'm not a recruiter"

This is probably the most common objection raised by employees invited to participate in referral programs. The answer to this doubt is obvious: "That's exactly why we're asking you." The whole idea behind referrals is the belief that a talented graphic designer will be recommended by another graphic designer, or that a good PHP developer is best found by another IT specialist in that field. A lack of professional training in candidate sourcing and screening is no obstacle here. Interviews, tests, and the final decision should be left to the HR department anyway.

2. "I don't want to take responsibility"

Even the biggest fan of referral recruitment doesn't assume that every recommendation will be a perfect match. Some CVs will be filtered out during initial screening, some candidates won't pass the interviews, and many potential employees will be tempted by other offers. For any recruiter, these kinds of issues are part of daily life. It is worse when a referred candidate goes through the recruitment process, gets hired, and only then do complications arise. It is impossible to rule out that one referred employee might quit after a week, another might neglect their duties, or a third might fall victim to bullying or otherwise become disappointed with their new position. Each of these situations puts the referrer in a very uncomfortable position. Supervisors might blame them for suggesting a weak candidate. A colleague might hold it against them for recommending a workplace where they were exposed to unpleasantness. How do you deal with these fears? First (once again), by emphasizing that it is not the referrer who bears responsibility for the selection and hiring of the candidate, but the recruiters who chose them. Both the referrers and their supervisors must understand this. Second, referrers should be provided with the information they need to select candidates well. If this is missing from the job posting, HR should clear up any doubts through individual consultation, even via email.

3. "I don't understand what I'm supposed to do"

What is new and unknown naturally raises concerns. This is, of course, a truism. However, I mention it because in the excitement of a new implementation, the end user is often lost from sight. First and foremost, referrers must learn about the implemented referral program, understand what it is, and why it is worth getting involved. If referrals take place within a dedicated employee platform, this is a matter of internal communication. When using an external platform, you have to trust its recruitment marketing expertise. In any of these cases, however, the keyword is feedback. The referrer should be kept informed about the status of their candidate. It should also be clearly explained to them in which situations they will be eligible for a reward and in which they will not.

4. "I don't have time for this"

If a referral system is to be effective, it must be simple and intuitive. You cannot expect an employee to abandon their duties to fill out extensive forms. You also shouldn't create the impression that the whole process is time-consuming, as this will be discouraging. A user should be able to make a recommendation with just a few clicks. In their subjective view, referring should be an action that can be done spontaneously and does not involve any additional duties or burdens.

5. "I don't believe the process is fair"

A referral system, especially when accompanied by attractive rewards, must be transparent. The rules must be clear and the same for everyone. There should be no impression that recruitment by referral is the same as hiring through nepotism. Information about new openings should not be limited to a select group of employees. This will inevitably create the impression that some program participants have better chances of being rewarded than others. All employees should have access to them, regardless of the nature of their work or their location. An exception can be made when you decide to draw from both employee referrals and an open referral system simultaneously. In that case, it seems reasonable to favor your own employees—for example, by offering them higher rewards.

6. "Does this even work?"

What a good referral program needs is social proof. It is assumed that when a person doesn't know how to act, they follow the majority of the group. Translating this into the language of referrals: if someone invited to a referral program sees that others are involved and are deriving benefits and enjoyment from it, the chance that they will get involved themselves increases significantly. A company should not shy away from showing off its best referrers and new hires. The latter helps raise the profile of the new employee and facilitates their onboarding process.

7. "What about the reward?"

There is no action without gratification—even if it is symbolic. If a company expects engagement, it should offer something in return. It is important that rewards are consistent with the expectations of the referrers, the organizational culture, and other benefit systems available in the company. You should also do everything possible not to delay the moment of handing over the reward. The recruitment time and notice period are usually more than a month, and often even three or four. This is one of the reasons why it is worth splitting the reward and paying part of it after hiring and the rest after the probationary period. If the reward is not financial, you can offer something of lesser value after hiring, while still letting the referrer know that they have been noticed and that the "main prize" is on its way. It is also good to reward employees for smaller activities, e.g., simply making a referral, recommending an employee who was invited for an interview, etc.

8. "My supervisors think it's a waste of time"

Can you blame them? Many of them might say that salespeople should focus on sales and accountants should keep an eye on revenue and expenses. Involving them in recruitment distracts them from the tasks they have been assigned. However, if you look at the problem more broadly, it is easy to see the benefits of implementing a referral program for the manager themselves. Referred employees usually exhibit higher loyalty and engagement, partly because they don't want to put the people who recommended them in a difficult position. The fact that they enjoyed the trust and liking of someone on the team even before they started working makes it easier for them to step into their new role. With this in mind, it is important that referrers are aware that their team leaders not only don't see a problem with it but actually expect them to be involved in the referral system.

9. "I didn't get a response from your HR"

We must not forget about the applicant and their relationship with the person who provided the recommendation. If a candidate receives no response after submitting their CV or following an interview, they will naturally direct their questions—or even grievances—to the person who referred them. Placed in such an awkward position, the referrer will likely want to avoid future discomfort and will probably opt out of participating in referral programs. Clear communication between HR and the referrer, as well as between HR and the applicant, is a key element of a successful employee referral program.

10. "Why should I do this?"

It all comes down to whether employees feel motivated to engage with the referral program. If they don't receive enough incentive—for example, due to a reward that is too low or a lack of understanding regarding the benefits of participating—they will simply opt out. Only when the advantages of the referral system are made clear can you expect participation to become the standard and motivation to become second nature.

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