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Home > People > Internal referrals – a great way of hiring new employees

Internal referrals – a great way of hiring new employees

August 10th, 2007 Leave a comment Go to comments

I am not sure about many of you out there but finding great employees is extremely hard.  I can run ads in papers and online and get flooded with results but how do you wade through the emails from around the world, how do you know that you have found the right person and how do you avoid those recruiter fees?

Well a tool we use alot in the business in internal referral.  We have a $1500 reward for any employee who recommends someone else to join and that person survives their probation period.  We are looking modifying this so that it is scalable – $1000 for first person, $1500 for second, $2500 for third etc …

I reckon we have employed 30% of our staff using this method and it works.  The best thing is that one of the key success measures in employing a person is cultural fit.  Having those inside help employ ensures cultural fit (well most of the time!)

As the Chief Executive Officer, I have personally introduced some key people to the business – and often they are from other countries.  My CFO i have known for 10 years and was recruited from Germany, my CIO i have know for 6 years and was recruited from San Francisco, and our internal process improvement manager is also from Germany and someone i have known for ages.  And the list goes on.  It is not about jobs for friends, as i have some of my Senior management or the Board interview them too.

What is interesting is that our CFO has introduced another 3 people to the business – 2 from Germany.  This approach can also broaden your recruitment market from your local market to the world.

I am working on the theory that great people know great people and so on.

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