Sponsored by Bountiful
SUMMARY
In today’s competitive hiring market, employers are looking for leverage wherever they can find it. And we all know the power of connections — especially when sourcing talent. That’s why employee referral programs are so attractive. But why limit referrals to employees?
Access to a broader spectrum of referral networks can lead to a stronger recruiting advantage. So how can you expand your reach to find more qualified candidates, even faster?
That’s what we’re discussing on today’s #WorkTrends podcast. So if you’re interested in amping up your talent options, tune in and read on…
MEET OUR GUEST
Scott Sinatra is CEO and Co-Founder of Bountiful, an exciting HR tech startup devoted to helping employers scale and manage employee referral programs to achieve better hiring outcomes.
Actually, this isn’t Scott’s first startup rodeo. Previously, he led early revenue generation functions at Glassdoor and at Glint, which was later acquired by LinkedIn. Now, Scott’s experience and passion for advancing the human side of work are leading him to help recruiters build more vibrant, effective talent pipelines through referral networks
To learn more about Scott’s mission and how Bountiful fits in, check the highlights from our conversation below…
TOP TAKEAWAYS
- Automation and scalability are key. If your employee referral program is missing either of these core capabilities, it’s time to reassess your process and underlying systems.
- Don’t underestimate the power of network effects. Employers that rely on social media to expand referral programs are already gaining a competitive advantage.
- It’s important to know which incentives and rewards actually work. To be sure you’re on the right track, gather ongoing input from network members, evaluate ongoing activity, and adjust accordingly. This will help you optimize results over time.
DETAILS
How has crowdsourcing crossed over into the world of recruiting?
[2:31] People are now more digitally and globally connected than ever. And business, social, and direct networks are still rapidly expanding.
Just look at LinkedIn. 75 million organizations are onboard, along with nearly a billion members. And as the network grows, those connections are becoming more diverse. From a recruiting perspective, that’s phenomenal. Yet employers still aren’t tapping into the full potential of crowdsourcing for talent acquisition.
Candidate referral programs, if any, are limited to employees. And external recruiters are usually hired for targeted access to their curated networks.
Meanwhile on LinkedIn and other job boards, the “post and pray” approach of yesteryear is still very common. It’s an attempt at crowdsourcing, but it’s largely ineffective. Unqualified inbound applications continue to rise, so there’s a big challenge ahead.
How is online social networking changing the recruitment landscape?
[4:19] Actually, many companies rely on employee referrals as a source. In fact, our research indicates that about 20% of hiring comes from referrals. That’s not bad. However, where employee referral programs are in place, participation remains quite low.
So we see an opportunity to expand the use case beyond a company’s four walls. In other words, why not leverage broader referral networks that enable anyone, anywhere to get paid for referring candidates?
Social networking gives us this opportunity to expand recruiting reach rather quickly. It also adds diversity to the talent funnel, so it improves candidate quality.
Yes! We needed this yesterday. It’s been unfolding for a while, but when leaders rethink their talent pipeline fundamentals, everyone wins.
[5:55] It’s interesting. When we talk with employers about referral networks as a good source for talent, they agree. Yet they’re so underutilized.
Why? Leaders tell us that’s because the process is cumbersome or difficult to manage. But those challenges are fixable. And that’s what we’re doing.
Could you tell me more about how scalability strengthens referral programs?
[8:03] Well, we often hear concerns that employee referral programs build homogenous teams. A decade ago I was at Glassdoor. At that time, 86% of my hiring came from employee referrals, and I realized my team lacked diversity.
But now with expanded social and business networks, it’s easy to include people and organizations outside of your company.
This diversifies the talent flow through the sheer physics of network effects. It gives you a world of new networking and candidate possibilities. We’ve seen it happen.
So, what truly incentivizes employees to refer quality candidates?
[9:30] Frankly, rewards activate referral networks. And by changing the reward structure, we can encourage more people to participate more readily and more often…
LEARN MORE
To find out more about next-generation talent referral networks, visit the Bountiful website for articles and other helpful resources.
LISTEN TO THIS FULL EPISODE AND OTHERS…
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