Referral Programs

Why Referrals Make Better Hires

“Who you know” is the most important thing when searching for a job, so why not use it when you hire? It just might be the one factor that could help you hire a better fit for your company. 

Hiring managers all know that words on a page can be exaggerated, but a personal referral helps provide an important character reference that a resume cannot. You definitely don't want to overlook these candidates when sourcing for a new position.

Why Referrals?

Why Hire From Referrals

If you’re an employer, ask your employees to scour their social networks before you place that job ad. Research shows that you’ll hire faster and spend less money if you simply reach out to your existing employees as the first step in your employee search.

That’s what makes a Recruiter effective — they are heavily networked across pools of people. They understand that who you know makes all the difference, especially in competitive job markets.

Here are the top three reasons to look for referrals:

  1. You’ll hire more quickly, and in some cases, you won’t even have to create an ad or spend money posting it. The applicant-to-hire ratio is significantly lower with a referral, at one hire for every three applications versus one hire from every 10 candidates from an advertisement.

  2. Interestingly, the referral candidate tends to onboard more quickly; they have an internal resource that they can go to with questions, so orientation just seems to flow better.

  3. Referred employees stick around longer, with around a 46% retention rate after a year, compared to 33% from career sites and 22% from job boards.

Less wasted management time saves money and is generally more efficient. That’s why asking, “Who do you know?” is so important to any new employee search. There’s a lower termination rate for these candidates because they just end up being a better fit, no matter what industry you’re in.

Looking for more reasons? Read this.

Referral Trends to Watch

Referral Program Data

LinkedIn releases their Global Recruiting Trends study yearly, which looks at approximately 4,000 business-related recruiters across 35 countries. In 2017, they found that there are three key resources for finding new talent:

  • #1 is employee referrals, at 48%
  • #2 is third-party websites, at 46%
  • #3 is social networks, at 40%

Companies understand that finding a referral pays off big in the end. That’s why job seekers should approach their social networks first before ever sending out a resume in a cold search, and companies should consider a referral the next time they're looking to hire. Still, referrals make up only 6.9 percent of all new hires.

That’s why it’s often more productive to call a professional staffing agency with networking connections in the job field you’re trying to hire. 

Don't have any? Let us share our network with you. Click here to get in touch.

Help Me Hire Talent 


Big Money for Big Referrals

Twitter Referral Program 2019 GIF

Artisan Talent is always in a nationwide search for the best creative talent and clients.

We’re always looking for the best individuals to share their creative skills with our clients, and vice versa. If you know talent — or a business that needs staffing — contact us. We'll pay you up to $1,000 per referral. Get the details here.

Have someone to refer? Email us at or click below.

Refer Someone Now

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