A trustworthy employer: referrals during the pandemic

Referral programs rely on engaged communities and their professional networks. During a crisis, employers can leverage this potential to consolidate their team from within, strengthen external communication, and save on recruitment agencies and job boards.

Time to strengthen your employer brand

There is no doubt that recruitment processes will move increasingly online over the coming months. Video interviews, online competency tests, and electronic contract signing are all rapidly becoming the new standard. However, these tools are only effective if you can attract interested candidates. Especially now, with the risk of a crisis, candidates are looking for information about potential employers primarily online. In times of uncertainty, when companies are failing, laying off staff, and entire industries are entering a recession, candidates gravitate toward organizations that:

• do not operate in industries most vulnerable to the effects of the pandemic
• have a strong market position that offers hope for surviving the coming crisis
• properly look after the health of their employees by implementing appropriate procedures

Who could be a more credible witness to this information than a current employee? They can confirm that the company is handling these difficult times well, that there is no risk of significant staff turnover, and that the work atmosphere remains positive despite the pandemic. Their recommendation at this moment is worth more than any marketing campaign or employer branding initiative. In a crisis, people tend to trust those closest to them, while limiting their trust in external sources of information. LinkedIn data shows that friends are the most important source of job information for candidates. By engaging your employees, you can strengthen your image as a trustworthy employer.

Referrals – at a distance

Recommendations made via referral links, such as those in systems like ShareHire, have the advantage that the referrer and the candidate do not need to meet in person. The referrer simply sends a link to the job offer. The job page can also include information on how the company is handling the pandemic, as well as future plans, for example in the form of a video, infographic, or a few words from a recruiter.

Activating passive candidates

HR departments must be prepared for the fact that the poor performance of competing firms may bring many valuable people to the market who, under normal circumstances, would not have considered changing jobs. We can expect the activation of passive candidates who, returning to the job market after a long break, will start asking friends about potential openings. Referral programs with rewards make it easier for employees to initiate such conversations.

The current labor market situation is like the stock market: share prices are falling, but there are those who want to buy low to sell later for a high profit. Similarly, it is worth being patient when acquiring the best employees – this is a perfect opportunity to focus on attracting new talent and strengthening key departments for the post-crisis period.

Referrals as a CSR tool

Some employees will want to help friends who have lost their jobs and are in a difficult situation. Introducing a referral program gives them the tools to support their loved ones. These efforts can also have a strong mobilizing element: a referral becomes not only a way to earn extra money but also a chance to help others. Such a solution is easier to implement in companies that hire in large volumes.

However, every organization can rethink its candidate sourcing methods during a crisis. Funds that would normally be spent on recruitment agencies or ads on popular portals can be used for employee referral bonuses. This solution builds on existing practices while expanding their scope. In this way, the company sends a signal that it wants to support its employees, and in the event of pay cuts, it provides them with a way to bridge the budget gap.

It is also worth highlighting the role of such support in the context of CSR: the company could commit to donating a portion of the saved funds to fighting the virus.

Engagement is capital that pays dividends

During a pandemic, referral programs can help create a true community within a company. As the principle of community-based business states: a community is a unique, non-replicable asset that is worth more together than the sum of its individual members' potential. Such an asset is invaluable for companies fighting for talent during a crisis – it can replace traditional recruitment methods.

Sources: LinkedIn, The Ultimate List of Hiring Statistics, Glassdoor Economic Research, Job & Hiring Trends for 2020.

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