Blog Post

Does your company offer incentives to candidates and/or clients if they refer leads to you? My question is, how successful are referral incentives in all honesty?

I have worked with many companies who offer extremely generous financial incentives if a candidate name is given to them (with terms applicable of course). However in reality, does merely offering a financial reward result in increased referrals?
I think not, and here's why:

1- Most people will only refer people if they have had a positive experience of using your services. So financial rewards on their own don't guarantee a 'truck-full' of names. So think about the experiences you are delivering at all times.

2- No matter what the financial payout is, if it is not communicated well and on a consistent level, the message will not penetrate very far. So create a marketing message around your incentive and consistently play that tune.

3- Referrals often fail due to the lack of control and/or follow-ups. How many times have you heard someone say ' I will ask my friend if they are interested in a new job and come back to you’? Do they ever come back to you? No they don't. Simply ask if YOU can make contact with the referral and not the other way round. If the referee is not comfortable with this, then follow up within 48 hours to see if they have managed to speak with their referral.

All of the above aside, I think that financial rewards are not necessary to obtain a referral. Yes they can be a sweetener for some, however most people I have worked with will happily give you a lead IF you have been decent throughout the recruitment process, and they have had a positive experience when using your services (even if you didn't find them a job, or fill their vacancy).