{"id":15928,"date":"2017-08-22T11:19:30","date_gmt":"2017-08-22T01:19:30","guid":{"rendered":"https:\/\/www.bullhorn.com\/au\/?p=15928"},"modified":"2017-08-24T12:03:34","modified_gmt":"2017-08-24T02:03:34","slug":"customer-referrals-important-recruitment","status":"publish","type":"post","link":"https:\/\/www.bullhorn.com\/au\/blog\/customer-referrals-important-recruitment\/","title":{"rendered":"Why Customer Referrals Are So Important in Recruitment"},"content":{"rendered":"

Referrals are crucial for any recruitment business, but do you know just how crucial? When Rolf Kramer looked at the data for his Denver-based IT staffing firm, <\/span>Kranect<\/span><\/a>, he found that referrals are one of the best sources for both candidates and clients. \u201cFor us, referrals are everything,\u201d he says.<\/span><\/p>\n

The way connections are made in recruiting is fundamentally different than in the past, Kramer says: \u201cThe whole sales game has changed so much.\u201d Competition in recruiting is just as strong, but people don\u2019t answer their phones or listen to voice mail as much as they used to. The phone calls they <\/span>will<\/span><\/i> answer are warm calls from referrals. \u201cIt\u2019s just easier,\u201d he says. <\/span><\/p>\n

He shared three lessons he\u2019s learned about the value of referrals.<\/span><\/p>\n

Referred Candidates Lead to Better Placements<\/strong><\/h3>\n

\u201cFor candidates, the conversion rate for referrals is way higher and more valuable than a job board candidate,\u201d he says. Kramer took a look at the data and found that when it comes to sourcing candidates, 42 percent of his team\u2019s recent placements came from referrals. The next-closest source was a job board, at 22 percent of placements. <\/span><\/p>\n

And referrals take less legwork to convert to a placement. For Kranect, while more than 7 percent of referrals turn into placements, only one percent of job board candidates result in a placement. \u201cCold job board candidates don\u2019t know you from anyone, while referral candidates are referred by someone they know,\u201d he says. \u201cThey\u2019ll answer your call or your email.\u201d<\/span><\/p>\n

Not only do referrals result in more placements, they result in better placements, Kramer says. \u201cThey\u2019re more qualified because the referring person knows what we do and knows they\u2019re a good fit. They were referred because someone thought we\u2019d work well together.\u201d<\/span><\/p>\n

Referrals Are Worth the Work<\/strong><\/h3>\n

Kramer says that every time he gets a referral candidate, he tries to help them, even if it\u2019s someone he can\u2019t place. That kind of consistent goodwill and work leads to more referrals, he says. \u201cYou never know what will come back around to you.\u201d <\/span><\/p>\n

He tells the story of a high-level project manager, Donna, who was referred to him. She had just been laid off and hadn\u2019t looked for a job in 15 years. \u201cI invited her into my office, spent an hour with her talking about the modern job search, and she was very appreciative,\u201d Kramer says. \u201cWhen I left that meeting, I thought, \u2018I just spent a lot of time with someone I\u2019m never going to place,\u2019 because we didn\u2019t have openings for that kind of role.\u201d<\/span><\/p>\n

Eighteen months later, Kramer heard from another candidate who had just applied for a job with a local government. The candidate looked on LinkedIn and noticed Kramer was connected to Donna, who had a new management job with the government group. The candidate asked if Kramer would vouch for him. \u201cI reached out to Donna and she emailed me back, saying I had helped her so much by meeting with her after she got laid off,\u201d he says. She went on to say that if they ended up hiring the candidate, she would pay Kramer a placement fee. \u201cThey hired him and I got paid $16,000. That reaffirmed for me the importance of talking to every referral.\u201d<\/span><\/p>\n

\u201cYou have to have the emotional intelligence of delayed gratification. People remember the people who help them. I talk to every referral, every time.\u201d<\/span><\/p>\n

Kramer says he uses his applicant tracking system (ATS) <\/a>to store notes about referrals and track relationships, helping him nurture long-term connections with candidates. In Donna\u2019s case, \u201cI referred back to my notes about the meeting and I tracked who referred her,\u201d he says. \u201cI thanked them as well. People like to know that they helped.\u201d<\/span><\/p>\n

Growing Sales Referrals Starts with Great Customer Service<\/strong><\/h3>\n

Increasing client referrals is important to a recruitment firm\u2019s success, as well. Kramer says his sales strategy starts and ends with great customer service. \u201cWe act in a manner that begets referrals,\u201d Kramer says. \u201cWe\u2019re easy to work with, reasonable, honest, and tell the truth. It isn\u2019t because I say, hey, do you know anyone else I could talk to? I don\u2019t even ask. It\u2019s just how we treat people.\u201d According to his data, 78 percent of the clients in his database are referrals.<\/span><\/p>\n

\u201cWork in a way that would make people want to refer their colleagues and peers to you,\u201d he says.<\/span><\/p>\n

By keeping track of the sources for all clients and candidates, you can start to make more informed decisions about how you find new business, he says. Kramer\u2019s data, pulled from his ATS and customer relationship management (CRM) software<\/a>, helped him see which client and candidate sources yield the best results. In his case, it\u2019s clear: Referrals are everything.<\/span><\/p>\n

\n

Want to learn about the top ATS features to look for in an applicant tracking system? Check out the\u00a0<\/span>ATS Buyer\u2019s Guide\u00a0<\/a>for everything you need to know to make a worthwhile investment in your recruitment firm\u2019s future.<\/em><\/p>\n\"referrals<\/a>\n","protected":false},"excerpt":{"rendered":"

Rolf Kramer, owner of the Denver-based IT staffing firm Kranect, avoids cold calling. Find out how he uses service and referrals to build his business.<\/p>\n","protected":false},"author":128,"featured_media":15930,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[],"tags":[],"class_list":["post-15928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nHow to Use Referrals to Build Your Staffing Business | Bullhorn<\/title>\n<meta name=\"description\" content=\"Rolf Kramer, owner of the Denver-based IT staffing firm Kranect, avoids cold calling. 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