Richard Finnegan

Employee referrals are 4Xs more likely to be hired, save companies over $7,500 per hire, perform their jobs better than their peer employees…and most importantly for our purposes, stay longer. The fact is that gaining employee referrals matters especially in industries where good candidates can be rare.

The world’s leading nations have a new common enemy which is that we are all running out of workers. The metric is “birthrate”, and the U.S. is at an historic low of 1.6 in 2023. Then there is Russia. I was watching The Late Show with Steven Colbert which showed a clip from Russian TV that couldn’t possibly have been true. I Googled it and was shocked to see that it was.

We long-time Floridians know the pre-hurricane drill, and as much as we have physical prep things to do, the emotional worries consume more of our energy. What I saw at Home Depot last night, beyond the long lines of customers buying sheets of plywood to board up their businesses and homes, were the happy faces, top-of-their-games politeness and genuine desire to be helpful to others. Somehow, we all found joy by being in the presence of others who felt their same trepidations.

Losing one technician for a month results in lost revenue greater than $60,000. So a client implemented a program where technicians earn double referral payouts after five new hire referrals because the net is significantly less than the $60,000 lost revenue per opening. By linking referral payouts to the actual cost of turnover, executives recognize that investing in employee referrals is a cost-effective way to reduce vacancies and minimize revenue loss.

Making the connection between culture and people is every company’s objective, as every company wants a good one. According to Harvard Business Review, 89% of companies want a culture of productivity and collaboration. So if our culture is 89% similar to so many others, how do we distinguish ourselves when hiring, engaging, and retaining the very best talent?

Human Resources work is now, more than ever, the most important work. We are in the bullseye of turnover, engagement, retention, and recruiting challenges with no end in sight. A recent study reveals that the top assignment from CEOs to HR is improving retention. I know you accept this challenge/opportunity/burden, but how are you going to make it happen?