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Misuse of Employee Referral Program by Candidates

Misuse of Employee Referral Program by Candidates.

Misuse of Employee Referral Program by Candidates or Employee Referral Risky for Hiring Managers.

  • Employee Referral program may not be a major hit in most of the marketing or health sector or other non-it sector industry but considered as major hit these days for IT sector.
  • Buddy Referral program or Employee referral program is one of the favorite ways for most of the IT sector to earn money. This employee on perfect referral can earn from minimum Rs 8,000 (2yrs) to Rs 1, 50,000 (Top Management position) in India whereas it ranges from $2000 to $5000 in US based firms.
  • We may have already read about buddy referral in detail in most of the other article of this blog if not, you can read here.

Coming to the main topic, let us understand why buddy referral program is sometimes considered as risky by the Hiring managers or HR Managers,

1. Employee Referral Share.

  • The trend of sharing employee referral is one of the trends observed these days.
  • In this, the employee post buddy referral openings via Whatsapp or Facebook or other social network sites and mention for a buddy share in case of selection.
  • Employees are more concerned about their referral share more than the quality of employees turning for the interviews especially on recruitment drives.
  • They tend to share the most resumes leading to some hit ratio. Due to this trend, the hiring managers sometimes may fail to decide the best from the already selected candidates and may select a wrong choice which indirectly affects the hiring or the recruitment team. 

2. Attempt for Mock Interviews.

  • This is one of the hot favorite ways for most of the candidates to give mock or trial interviews. Candidates appear for such interviews to study the type of questions asked and to know how well or to what level they are prepared for interviews related to their skill set.
  • For eg; Marketing Associate may be interested to experience the level of leadership role or a Product Designer interested to know the various levels to become a Solution Architect in future.
  • Such candidates usually fail to qualify to the next round. But if any succeeded then may or may not join or resign. (since candidates are mentally not prepared for change of job)

3. Intentions to Break Notice Period.

  • I remember candidates who always look out for Employee referral openings; the major intention to look for such openings is to break their official notice period.
  • Candidates with 60-90 Days notice period usually prefer such ways and further go ahead to get the best counter offer.
  • When I personally did a research, I found hardly 20-30% candidates join in case of 90 days and 60 -75% in case of 60 Days notice period.

 4. Know Market Value.

  • Before looking for a change some candidates wanted to study or know “What can be the best CTC or Salary that can be offered at their respective experience level”.
  • In order to know this level, candidate tries all other ways which include employee referral as well.
  • One common pattern observed among such candidates – They tend to fluctuate with their expected CTC or salary every time. If Hiring manager fails to identify then it’s the recruitment team which suffers the most.

 5. Unknown Unwanted Referral.

  • The craze of Employee referral and the need to earn extra apart from the job is the basic need of every employer these days. This need further extends ahead in the name of the employee referral.
  • For the sake of extra income, employee’s refers candidates which may not be known or familiar to them. It’s this part of the employee referral which makes the hiring managers plans to fail or employee referral program failure.
  • In such referrals, employees refer resumes send to them via known or unknown sources which cannot be trusted as part of the employee referral program is concerned. Research shows candidate fails to join for offers made via such source.
  • The hiring manager if fails to analyze the right referral and makes an offer then the entire hiring decisions goes for a toss which will lead to waste of time for interview panels and the hiring team as well.

6. Intentions to Explore any firm.

  • I remember an employee referred a candidate who was not interested to change his job instead only wanted to discover how the firm is all about.
  • Such candidates follow every step of employee referral, get an offer but don’t have any plans or intentions to join.
  • In such case, the hiring manager counts such offered candidate as a nominee and allot them to the upcoming or current urgent requirements. Since the candidate doesn’t join, it’s the hiring manager and his team who suffers.

These are the ways via which candidate misuse employee referral, if you know any such cases which you or any of your friends may have experienced, then feel free to comment below.

About Nitin Ravale

Nitin Ravale is a HR turned Pro Blogger and Youtuber who makes his living via Online Digital Marketing sources.

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