Referral programs in most orgs are very outdated and not made a focal point. Considering how many hires most organizations get are from referrals, we can really supercharge these programs by thinking outside the box. Thinking about what really drives human behavior to go out of their way to refer someone for a role.
Referral Programs: We Can Do So Much Better - Alan Henshaw
1. IF YOU BUILD IT, THEY WILL
COME
RECRUIT DC – DECEMBER 2017
2. WHO AMI?
Client Lead/ SeniorTechnical Recruiter– Amazon
Former DCresident –nowSeattle
10yearsofTalentAcquisitionexperience
Engineering,UX &Visual Design,Analytics,Cloud,DevOps, scientist,
blahblahblah
Full life cycle recruiting, Operations,Programs,Analytics,Toolsadvisor
@henshawsburgh
AlanHenshaw
3. HOW THIS CAME UP
How thistopic came about
Benefits
How mostprogramswork
Whymostdon’twork
NewIdeas
Tools
WHAT WILL I BABBLE ABOUT THE NEXT HOUR?
4. “What people say, what people do, and what people say they do
are entirely different things.”
- Margaret Mead
5. HOW THIS CAME UP
2001humanbehaviorstudyin SouthernCalifornia
Turnoff yourACand turnon yourfans, youcan save $54this summer.
“Save the planet” by turningon fans instead of yourAC.
Be a good citizen and help control energyblackouts by turningoff AC.
BUTtherewas a4th
Whensurveyed, 77%of yourneighbors didin factturnofftheirAC andturnedontheir fansandpleasejoin them
in doing so.
HOWWE GOTHERE
6. WHAT DOES THIS TELL US?
If something is inconvenient...
Moral persuasion and financial incentives don’t do muchto move
us.
BUT
Socialpressure,socialrecognition, behavioralscience – thatis
wherehumanbehaviorchangecanhappen.
7. WHAT DOES THISHAVETO DO WITH RECRUITING?
Utility regulationhasn’tchangedmuch sinceThomasEdison.
Peoplespend7 minutes ayearthinkingofenergy consumption.
8. REFERRALS – WHAT ARE THE BENEFITS?
A large numberof hiresgenerallycome fromreferrals(17-
30%).
13%higher retentionrates.
75%morelikely tobehired.
Morecosteffectivefortheorg.
9. GENERALTRAITS FOR MOST PROGRAMS
Dayone ofnew hire orientation,one quickslideoverview.
After90/180days,youget paid.
Lackofeducation.
The “blackhole.”
Recognitionfortheemployee.
Leadershipdriving theprogram.
Referralprogramsareboring.
10. WHY THISDOESN’TWORK
Dayone ofnew hire orientation,one quickslideoverview.
Lackof Education &process.
After90/180days,youget paid.
Hopefully.
Lackof education around programs.
New Hire team does orientation.
The “blackhole.”
What SLA’s arewe held to? Give expectations.
Recognitionfortheemployee.
Thedefinition of social recognition.
Leadershipdriving theprogram.
YourLeadership doesn’t makethis a priority to build a cohesive team.
11. BEFORE WE IMPROVE: THE BASICS (1/2)
Even withthe worstReferralprogram,youwill get referrals!
• Duringanemployees first 6 months, youaremost likely to get referrals.
Understandingrecruiting-
• Equal balance of huntingand farming.
• “You haveto deposit money before youcan take it out.”
• Provide value – Introduction,resumetips, online article.
• Timeeach weekdedicated to farming and building relationships.
12. BEFORE WE IMPROVE: THE BASICS(2/2)
DoNOTjust askaboutpeopletheyknowlookingfora job.
Instead-
• Ask who theyworked with before that was amazing.
• Who in the industry would youlove to work with at some point.
• Who do youknow that is qualified for the job?
Askif youcanmention theirnameornot.
• Either way, you are spending time on a qualified candidate.
13. NOW THE FUN STUFF
How toimprove.
Whatdowe reallywant?BetterQuality!
Youdon’thavetodoALLofthem, usecreativityforwhataligns withyourorg’s currentstructure.
Startwith 2x2logic – Littleeffort,maximumreturn.
14. IDEA #1
All aboutthe recognition -
• Referral analytics.
• Call outs during All-Hands meetings.
• Dinner/HappyHourwith Leadership.
• Email from Leadership.
Recruitinggetting timeatthe beginning ofbusinessmeetings.
15. IDEA #2
Within2 weeks ofanemployeestarting,sit down1:1 withthatperson.
• Education on how the program works.
• How yourparticular companyhires.
• Discuss open roles on the team.
• Createa list.
16. IDEA #3
Createa programaroundreferralswithsocial
recognition.
Tiers of“swag.”
Whyitworks-You can’tget it!
Peoplewantthings in low supply& high
demand,
Air Jordan2 –netted $31Kon ebay
17. IDEA #4
Thinkbeyondmonetarybenefits.
Forasuccessful referral,sendthem toa conferenceof their
choice(entry, airfare,hotel.)
• Something theymay not pay for themselves out of their own
pocket.
• Theywear swag = brand awareness.
• Knowledge share to the rest of the team.
• Teachthemhow to recruit before theygo!
Welcome! It is really great to be here. Thanks to RecruitDC for actually having me here a 2nd time. They must have forgot about the first time I was here?
This session is going to be interactive. If you don’t answer questions or remain quiet, its going to be awkward for all of us
So “If you Build it, they will come” What movie? I told you it would be interactive!
So who I am? My name is Alan Henshaw. That is me there. I also think I have an extremely strong Bitmoji.
And you can see my twitter handle there so feel free to tweet along and tell me how amazing or awful this information is.
Work now for Amazon as a Sr Tech Recruiter and also a Client Lead which means I oversee a project within my business. I work with the business owners to improve process, look at annual hiring plans and plan I did tech recruiting in the DC area for about 6 years. Software company, Consulting, some staffing. Mainly all in commercial, very very little government. I moved to Seattle recently to join Amazon.
Anyone from Amazon in the crowd? I need to know what I can / can’t say. Public relations talked about me taking a training course before this but I managed to avoid it so don’t think I can get in trouble.
Started career very metrics driven – Robert Half doing Accounting/Finance. It taught me how hard you have to work to hit your goals.
I have covered a wide range of technical roles – all types of engineering (software, machine learning, hardware, electrical, mechanical) Design, variety of analytics, Cloud & Devops, even now how started to recruit scientist around Bioinformatics, optical,
I have always carried a req load. I have been an individual contributor up to Director, always had reqs I handled. But really enjoy looking at Operations, Programs, Analytics of recruiting (RecruitDC Nov 2015), different tools / systems, business side (run rate, etc)
If you want to tweet me – see there
How did I get here to this exact point on this stage today. This is something that is actually a few years old or so which I will get into in just a second.
What are the benefits of having a referral program
How most referral programs generally work – as you will see, this can change though based on the size of your org
Also why most of these programs do not work effectively
What are some new ideas. Some things that you can put into motion ASAP.
We all love tools. What are some of the most popular tools out now that can help automate some processes.
Just a show of hands, anyone know who Margaret Mead is?
Margaret Mead was an American anthropologist. Anthropology is the study of what makes us human. When she past away in 1978 she was the most famous anthropologist in the world. Masters and PhD from Columbia. Author, Professor, Speaker on social sciences. It was through her work that many people learned about anthropology and its holistic vision of the human species. She was and is, a very important person in history for her education on human kind.
One quote that Margaret had that is very important to remember…
Used to work for Opower in Arlington. Publically traded, Saas based software company that built energy efficiency software for the utility industry. If you notice, “built” is past tense. They still operate but under the Oracle name now. I wont talk about it. It’s a sore subject for me.
Co-founder Alex Laskey TED talk. This talk was so fascinating to me. I would find myself just watching it over and over.
Hot summer in SoCal roughly 15 years ago, a local university (pretty sure it was Stanford) ran a behavioral science experiment. They put signs on every door in a neighborhood asking them to turn off their AC and turn on their fans. They wanted to see what would cause someone to actually change their energy consumption habits.
Read through first 3 bullets
(ask audience?) What do you think happened? They had zero impact.
Neighbors that got the 4th message saw an energy savings of 13%.
The other funny part, when also asked if money savings and environmental control would cause them to save, they said Yes. When asked if someone else was doing it, they didn’t care. “I don’t care what my neighbor is doing!”
It goes back to Margaret Mead- what people say, what people do, and what people say they will do are totally different!
Behavioral Science - back to Laskey TED Talk. Anyone own a hybrid or electric car?
I know first hand – I had a hybrid – watching that little screen that showed me my MPG, etc. Caused me to slow down. That is why the Prius was successful. It combined material science and behavioral science.
Some of you may be asking…. What in the hell does this have to do with Recruiting or referral programs???
-Referral programs haven’t changed much since Thomas Edison and neither have referral programs
- The average American only spends 7 minutes a year thinking of their energy consumption. Probably about the same amount of time, if not less, that they spend thinking about your god-awful referral program. – Opower survey that Product Managers did with consumers.
-At a high level – what are the benefits of having a referral program?
The following stats I took from an article on Recruiter.com by Sarah Duke. Content Creator for Red Branch Media
- large number of hires – changes drastically by org
Higher retention – 13% better retention rate– Referrals have a rate of 46% compared to 33%
Avg employee hire can cost between $5K - $18K – referrals much cheaper. Organizations can save roughly $3K per hire that is a referral.
Lets take a look at how “most” programs work. On the next slide we will talk about WHY these DON’T work.
Day 1. Show up, all excited. You sit down to do some type of orientation, you get a quick 15 second slide that covers this.
Getting paid. We all love money right?
Black Hole – having a system in place for looping back with the referrer. Does anyone in the audience have a good system in place? Is it automated?
Recognition – ask a question – how many people have a recognition system in place? (besides money) What are they?
Building a team is everyones responsibility. It is everyones job to uphold the values of the company and hire good people. Leadership generally doesn’t drive this.
Day 1 orientation is a blur for most. Its drinking from a water hydrant. One quick slide and moving on. New employee has more important things to remember.
Getting paid - its nice but doesn’t motivate most. After taxes, they are getting hardly anything! When asked, tons of people say money motivates them. In staffing, sales, that is what employers want to hear.
New hire team does orientation. They don’t do anything past that! They really don’t understand how it works or the ins/outs of it.
The black hole – the most complained topic with referrals. I refer someone, never hear anything back. I have no idea what is going on unless I reach out to recruiter or my referral. Large and small orgs a lot different. Educate your teams on what to expect and keep to it!
No internal recognition – An employee is new and puts their reputation on the line. Most of the time, the business doesn’t even know the source of the candidate.
Leadership doesn’t voice the priority of building a team. It is everyone’s responsibility to build the right team.
At the end – “Lets talk about how we can get better!!!”
The good news – no matter how bad our programs are, we will still get referrals.
More likely to get referrals during an employees honeymoon phase (first 6 months)
Back to basics. The 30k foot view of recruiting and what early recruiters mess up on. They don’t provide useful content or help.
BUT this is all important for a reason. Generally, people do not want to refer you people if they don’t think you will take care of them! They have to trust you first. You will still get referrals through an internal system. But want to get external referrals, you have to prove yourself and be a value before you get those networking leads!
How to ASK for referrals – so important!!!!! Most people hear “referrals” and immediately just think of who they know are looking for a job.
I honestly do not know when my best friends are looking for jobs. I get a text that says they got a new gig or I see it on LinkedIn.
Ask the right type of questions. Educate people on the type of candidates you want.
Some may be hesitant to give out names – tell them you don’t have to mention their name. We just want qualified candidates!
-No matter if you are an IC or manager, these are things that you could implement quickly to see improvement.
We can always improve. No matter how good a program is, we should always be doing iterations on improvement.
-What do we want? Quality over quantity. 1000 bad referrals don’t help us!
Recognition. Go back to the TED talk. Show the org the data of what everyone else is doing. Depending on bandwidth – you can create a landing page with a “Leaderboard” for the company.
Almost everyone has All Hands meetings. Give shout outs. Social recognition.
Education: What are recruiting SLA’s. If they refer someone, what is the process.
How we hire: Ex: For early level engineers, we look more for competencies and solid OO theory vs specific syntax.
Current open roles across your team or org
-Tiers of swag – a point system? Points for phone screens, on site interviews, and hires. Rack up points, get better swag! You can run this monthly, quarterly….
- Maybe have your design team create a special logo for referrals? Or “level” names? Be able to show off something you have that is unique.
This behavioral science is easy – people want what they cant have! Things in low demand drive a high price. Shoes, cars, coins, books, anything!
-Ask the audience - Who in here is a “sneakerhead?”
A pair of Air Jordan 2’s netted $31K on ebay. 28 years old and not even properly cared for, drew huge attention because of the rarity of them.
Why would we think that slapping a $2k bonus sticker on a referral is going to persuade employees to refer someone? Think back to the TED talk, monetary benefits do not motivate a lot. How can we get employees that have past the “honeymoon” phase to refer? Those are some we need to focus on the most.
-Send them to a conference. The whole works. Depending on your company, maybe attending conferences is not something everyone gets to do. And conferences are not cheap! That extra money they get from a referral, that money is spent! Mortgage, child care, student loans, credit cards, just monthly bills. It wouldn’t probably go toward something like that.
Multiple benefits from this! – They wear swag and create brand awareness.
-Don’t forget to teach them how to recruit before they go.
- If they meet somone they like, get contact info, ask if they can reach out.
- Talk about what they love about their company. Things developers will understand (new tech, ability to learn, etc)
Pretty self-explanatory.
We all work extremely hard. I am absolutely LOVE to take vacations and usually line up 2-3 per year to a nice tropical island somewhere. This would definitely incentivize me.
Quick transition – we all love tools. They help us automate our day to day tasks and referrals are no exception. Here are some of the top referral tools out there to help you navigate.
Many of us do not have extra hours to spend but we may have budget!
Many of these tools tap into employees social networks. Shows open roles and reward for each role. They can tag people from their network to that role. You want to find one that integrates with your own software and makes sense for your particular end goals.
Teamable – did a demo with co-founder Laura Bilazarian about 2 years ago. I am sure its improved since then. It allowed you to give access to the platform and you could look inside of your employees networks and suggest them for current roles, your employees could respond with their thoughts. Also would show what referral bonus’s are set out for each role.
Have any of you used these?