The Value of External Referrals in Recruitment Right Now

External employee referrals are becoming an increasingly popular recruitment strategy for companies of all sizes. In this approach, companies encourage their community, social following, alumni or even customers to refer candidates for job openings within the company. Here are some advantages of external employee referrals in recruitment:

Hiring Efficiency

With the current economic climate, companies are looking for more efficient ways to find talent. External referral programs are typically more cost-effective compared to other recruitment methods, such as advertising on job boards or working with recruitment agencies. Companies can save money on advertising and recruitment fees and lower cost-per-hire.

Hard-to-Fill Roles

External referrals can be especially valuable for hard-to-fill roles, where finding qualified candidates with the necessary skills and experience can be a challenge. In these cases, referrals from external networks and communities can help companies identify candidates who may not be actively looking for new opportunities but have the specialized skills and experience needed for the role.

The Growing Importance of Diversity‍

Employee referrals can help companies reach a more diverse pool of candidates since employees often have diverse networks of friends and acquaintances. Existing referral programs are limited to employees — affirming existing homogeneity. Eqo opens up diverse referrals.

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Overall, external employee referrals can be a valuable addition to a company’s recruitment strategy. By leveraging their employees’ networks, companies can quickly and cost-effectively identify high quality candidates who could be a company’s next great hire.