Recently, I've been hearing more and more about the term "referral recruitment." Referral recruitment is a recruitment activity conducted through internal and external connections, and is practiced by well-known companies such as Mercari and CyberAgent.
However, if the company you belong to starts hiring referrals, you will have a lot of questions. Even with a little thought, "What if the friend / acquaintance I introduced is rejected?" "I have a friend / acquaintance who wants to work with me, but how do I appeal to him (her)? Questions such as "Should I do it?" And "Can I successfully convey the issues that my company faces to the candidates?" These questions will surely be the bottleneck for referral adoption in any company.
In this book, clues to solve these bottlenecks are presented. The author, Toshiro Shiragata, has supported the recruitment of referrals by a number of companies as the president of Referral Recruiting Co., Ltd. Looking at the success stories introduced in this book, it is surprising that some companies have a 100% job offer rate via referrals, and some companies have hired new graduates.
After reading this book, you will understand all about referral adoption. Especially for managers and hiring department managers, this is a must-read book when considering future hiring strategies for the company.
The main points of this book
Referral recruitment is "recruitment activities by referrals and recommendations through reliable connections inside and outside the company." Unlike hiring because of a relationship, referrals do not mean that you will be hired unconditionally, but you will decide whether or not to join the company through an interview.
In order to sustainably succeed in referral recruitment, it is necessary to clear the three conditions of "appeal book", "construction of referral recruitment mechanism", and "recruiter from the perspective of the president".
The desired human resources should be aligned on the two axes of "personality that suits the company (mind culture fit)" and "skills necessary to play an active role in the company (skill fit)".
What is referral adoption?
Benefits of adopting referrals
Referral recruitment is "recruitment activities by referrals and recommendations through reliable connections inside and outside the company." It is now a common recruitment method for companies around the world.
When you hear this, you may wonder what is different from hiring because of a relationship. The difference between referral hiring and relative hiring is that referrals do not mean that you are hiring unconditionally, but that you decide whether or not to join the company through an interview. You should understand that employees perform recruiting activities on behalf of the sales staff of advertising media and referral companies.
There are seven advantages to adopting referrals.
(1) Recruitment costs can be significantly reduced
(2) Can hire human resources suitable for the president and the company
(3) The retention rate of employees after joining the company improves
(4) Visualize the attractiveness and issues of the company
(5) Continuous improvement of company attractiveness (realization of management reform)
(6) Executives and employees have a managerial perspective (ultimate human resource development)
(7) Everyone's hearts become one
The two effects of referral recruitment are "to make employees want to introduce their company to friends / acquaintances" and "to listen to the employees and ask friends / acquaintances to change jobs". It's time to get it all together. In short, employees must be strongly attracted to the company, and they must be able to convey that appeal to their acquaintances and move their feelings.
For that purpose, "visualization of the attractiveness of the company" is important. It can be said that the success or failure of referral recruitment depends on whether or not the visualized appeal can be properly communicated to friends and acquaintances.
Disadvantages of adopting referrals
Adopting referrals has the following five disadvantages.
(1) It takes time to be adopted
(2) Not suitable for mass adoption within one year
(3) Employees who are active are burdened
(4) It is difficult to stop if you make a mistake in hiring
(5) It is difficult to hire human resources at a level higher than the current employees
Of these, (1) will be resolved naturally if a referral recruitment system is built and can be operated continuously. First of all, if the president and several people become referral recruiters and eventually it becomes possible to expand company-wide, the time to approve the offer can be shortened.
Regarding (5), according to the author's experience, about 20% of employees speak to people who are better than themselves. You should identify such employees and have them play an active role as recruiters for referral recruitment.[Must read point!] Successful referral adoption
There are six conditions for successful referral recruitment.
(1) Setting a method for promoting the adoption of referrals without mistakes
(2) Clearing three prerequisites
(3) President's seriousness and initiative
(4) Start from a small success to a big success
(5) Solving "problems of concern" of referral recruitment project members
(6) Clearing 3 conditions for sustainable success
In the summary, "Clearing the three prerequisites", "President's seriousness and initiative", and "Clearing the three conditions of sustainable success" will be taken up.
There are three prerequisites for successful referral recruitment: "there are employees who like the president and the company," "do not lie," and "the president can listen to painful suggestions."
The first is that there are presidents and employees who like the company. The referral recruitment project members consist of the president and the company's favorite employees. If you try to move all the employees from the beginning, it will not work, so first select about 6 members and start the activity.
Second, don't lie. Use the "Appeal Book" described later to disclose all good and bad things. If you keep hiding the fact that you will be disappointed when you join the company, the person who joined the company will feel betrayed. Then, not only the introduced person but also the introduced person may feel responsible and even retire. By disclosing all issues, the risk of double retirement can be avoided.
Finally, the president can hear the painful suggestions. While identifying the issues of the company, there are times when the president and executives are pointed out. It is necessary to accept such indications, confirm the facts, and then decide how to take measures. If we can solve the problems at an early stage, the attractiveness of the company will increase.
President's seriousness and initiative
The president should work on the following five points when hiring referrals. It is extremely important to be serious about this effort and to take the initiative.
(1) Motivation for referral recruitment project members (one-on-one interview in advance)
(2) Participation in referral recruitment projects and demonstrating leadership
(3) Visualize the attractiveness and issues of your company with project members
(4) Determining the direction of solving the above issues (creating a dream plan for the president and employees)
(5) The president also hires referrals and hires one or more people.
The president always attends project meetings. While grasping the activity situation on the spot, show gratitude to the members and encourage them. In addition, the president himself hires. Meet friends and acquaintances and enthusiastically talk about the company's appeal, challenges, and vision.
By showing the attitude of taking the initiative, the members can understand the seriousness of the president. You will also recognize that it is a high management priority project. And you should be more engaged in recruiting activities than ever before.
3 conditions for sustained success
In order to sustainably succeed in referral recruitment, it is necessary to clear three conditions. "Appeal book," "construction of referral recruitment system," and "recruiter from the perspective of the president."
An appeal book is a document that visualizes the company's important thoughts, attractiveness and issues, future vision, personnel system, etc. in an easy-to-understand manner. It's important to be simple, not to lie, to write on the bad as well as on the good, and to keep improving.
Even if there are people who can be hired by referral recruitment, it will not last long unless it is structured. The "trigger creation process" up to the first contact with friends and acquaintances, the "successful process of persuading" while deepening relationships, the "referral selection process" that promotes selection, and the aim of obtaining consent from the person who made the offer. Divide into four processes of "successful closing process" and build a mechanism.
In addition to the "appeal book" and "mechanism," a recruiter from the perspective of the president is also required. In order to develop them, it is effective to increase conversations with the president, act with recruiters from the president's perspective, and utilize referral recruitment consultants.
How to proceed with referral recruitment
Setting the desired human resources image
Common mistakes include suddenly starting activities with all employees, creating and disseminating a referral recruitment incentive system, and having the Human Resources Department take the initiative instead of the president. If you start with these three methods, most companies will fail to introduce referral recruitment.
Follow the steps presented in this book to prevent failure. In this book, it is explained in several steps, but in the summary, "setting the desired human resources image", "creating an appeal book", and "full-scale start of referral recruitment" will be taken up.
Set the desired human resources image at the kick-off. This step is important because if you don't understand what your company is looking for, you can't be sure that your friends and acquaintances are right for you, and you can't be active in hiring.
Here, the two guidelines are combined. The first is "a personality that suits your company (mind culture fit)." We will set a personality that suits our company from the two perspectives of "I want to work with such a person" and "I don't like such a person". It is better to be as specific as possible, such as "people who like events, drinking parties, training camps, and travel", rather than those with a high degree of abstraction, such as "people who value their friends." That makes the image easier to understand and can reduce mismatches.
Next is "skills (skill fit) necessary to play an active role in the company". We recommend that you don't ask too much here. This is because it makes it difficult for employees to move.
Instead of thinking whether you are an inexperienced person or an experienced person, let's think from the perspective of "what kind of core skills should I have to learn the skills necessary for my company at high speed and stand alone?" The author's company says that it does not have "experienced consulting for small and medium-sized enterprises" but has three necessary skills: "can write sentences", "can disassemble large, medium and small", and "can talk with the president".
Creating an appeal book
Referral recruitment project members engage in recruitment activities with an appeal book. The purpose of the appeal book is to dispel the concerns of job seekers that "there is still something unclear about the company" and encourage decision-making. If you read the appeal book, you can understand almost all of the company.
The appeal book consists of 3 parts and 17 items.
Part 1 conveys basic company information, such as the one posted on the homepage. The contents include company profile and achievements, introduction of the president, mission, photos that convey daily life, attractiveness and issues, medium-term management plan, etc.
Part 2 summarizes the desired person. In addition to "I want to work with such a person" and "I don't like such a person", I will introduce the colleagues I work with.
Part 3 is a chapter that conveys the personnel system. Summarize the standard annual income model, the image of the job you want to challenge, and the ability development system.
Full-scale start of referral adoption
When you're ready, hold a strategy meeting for a full-scale attack. The purpose of holding a strategy meeting is to determine the frequency of progress meetings and action goals up to the first progress meeting.
The frequency of progress meetings is about once every two weeks to once a month, and it is recommended to hold them regularly. What should be discussed there is the progress of the attack, the solution of the problems that the members have, and the sharing of success stories.
Set the action goals as the number of attacks on the candidate and the number of events and study sessions that will be attracted by the "successful process of persuading". The number of attacks should be about 2 per member per month.
After the strategy meeting, there is only an attack to achieve the set action goals. Invite candidates to events and study sessions, and carefully persuade them. Of course, you can use the appeal book to directly persuade your friends and acquaintances without going through an event.
Recommendation of reading
In this book, the advantages and disadvantages of adopting referrals and how to proceed with the adoption of referrals are explained in detail with examples one by one. In particular, Chapter 4 introduces the success stories of the five companies, so it is easy to imagine the flow of actual efforts and the effects of referral adoption. A single read of this book will be perfect for practicing referral recruitment.
The time will come when the number of workers will decrease and recruitment activities will intensify. Referral recruitment may be the best solution for recruiting talented people in such an era. I recommend reading this as a book that will help companies that are worried that they are spending money but not getting the talent they are looking for.