Afraid to Refer? What Undermines Employee Referral Programs

Afraid to Refer? What Undermines Employee Referral Programs

Americans have a good term for it: referral-killers. In Polish we have to be more descriptive: everything that spoils a good referral program. If the flow of applications and the number of employee referrals falls short of the company's expectations, the first step should be to refine its recruitment processes. Often, however, success or failure is determined not by the user interface, the size of rewards, or the frequency of mailings, but by what goes on in the mind of the potential referrer.

1. “I'm not a recruiter”

This is probably the most frequently raised objection from employees invited to take part in job referral programs. The answer to these doubts suggests itself: “that's exactly why we're coming to you.” The whole idea behind referrals boils down to the belief that a talented graphic designer will be recommended to us by another graphic designer, or that the fastest way to find a good PHP developer is through another IT specialist working in that language. The lack of professional training in sourcing and screening candidates 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 on the responsibility”

Even the greatest enthusiast of referral-based recruitment doesn't assume that every recommendation will be a hit. Some CVs will be rejected in the initial screening, some candidates won't perform well in interviews, and more than one potential employee will be tempted by another offer. For any recruiter, such problems are everyday reality. It's worse when a referred candidate passes the recruitment process, takes the job, and only then do complications appear. It can't be ruled out that one referred employee will leave after a week, another will neglect their duties, and a third will fall victim to workplace bullying or become disappointed with the new position in some other way. Each of these situations puts the referrer in a very uncomfortable position. Their superiors may blame them for suggesting a weak candidate. A friend may resent them for recommending a workplace where they were exposed to unpleasant experiences. How to deal with these fears? First (once again), by emphasizing that it is not the referrer who is responsible for selecting and hiring the candidate, but the recruiters who chose them. Both the referrers and their managers must understand this. Second, referrers should be equipped with the information they need to match candidates well. If it's missing at the job posting stage, 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. That's a truism, of course. I mention it, however, because in the enthusiasm surrounding a new rollout, the end user is often lost from sight. First and foremost, referrers must learn about the referral program being implemented, understand what it involves, and why it's worth getting engaged. If referrals take place on a dedicated employee platform, it's a matter of internal communication. When an external platform is used, you have to trust its recruitment marketing competence. In each of these cases, however, the key word is feedback. The referrer should be kept informed about the fate of their candidate. It should also be clearly explained to them in which situations they will be entitled to receive 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 in order to fill out elaborate forms. Nor should you create the impression that the whole process requires a large investment of time, because that will be discouraging. The user should be able to make a recommendation with just a few clicks. In their subjective perception, making a referral should be something that can be done spontaneously and that entails no additional obligations or inconveniences.

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 must be no impression that referral-based recruitment is just another name for hiring through connections. Nor should information about new openings be limited to a select group of employees. That will inevitably create the impression that some program participants have a better chance of a payout than others. All employees should have access to them regardless of the nature of their work or where they perform it. An exception can be made when you decide to draw on both employee referrals and an open referral system at the same time. In that case, it seems reasonable to give your own employees an advantage — for example, by offering them higher rewards.

6. “Does this even work?”

What a good job referral program needs is social proof. It is generally accepted that when people don't know how to act, they follow the majority of the group. Translated into referral language: if someone invited to a referral program sees that others are engaged and are drawing benefits and enjoyment from it, the chance that they themselves will get involved rises significantly. The company should not hold back from celebrating its top referrers and its newest hires. The latter helps raise the new employee's visibility and eases their adaptation process.

7. “What about the reward?”

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

8. “My managers think it's a waste of time”

Can you blame them? Many of them might say that salespeople should focus on selling, and accountants should watch over income and expenses. Involving them in recruitment distracts them from the tasks they've been assigned. But if you look at the problem more broadly, it's easy to see the benefits a referral program brings to the manager themselves. Referred employees typically show higher loyalty and engagement, partly because they don't want to put the people who recommended them in a difficult position. The fact that even before starting work they enjoyed the trust and goodwill of someone on the team makes it easier for them to step into their new role. With this in mind, it's important that referrers know their team leaders not only see no problem with it, but actually expect them to engage in the referral system.

9. “I never heard back from your HR”

We can't forget about the applicant and the relationship they have with the author of the recommendation. If a candidate receives no response after sending their CV or after a job interview, they will inevitably direct their questions (or even grievances) to the person who referred them. Put in such an awkward position, the referrer will prefer to spare themselves the unpleasantness in the future and will most likely drop out of referral programs. Good communication between HR and the referrer, and between HR and the applicant, is a key element of an effective employee referral program.

10. “Why should I do this?”

Everything comes down to the answer to one question: does the employee feel motivated to engage in the referral program? If they don't receive sufficient encouragement — for example, because the reward is too low or they don't understand what benefits participation brings — they will opt out of the program. Only when the upsides of the referral system become clear can you expect participation to become the standard, and the motivation to take part — natural.

‍