Sanpo-yoshi Communication

President's Column] Referral Hiring

Earlier this year, we asked employees to refer friends, acquaintances, and relatives on our internal newsletter and mailing list who might fit into our culture.

This is so-called referral hiring. Referrals (referralThe word "referral recruiting" (リファラル採用) means "introduction" or "recommendation," and recruiting activities through referrals from employees have been the focus of much attention recently.

The difference from mere nepotism is that only those who meet the company's hiring criteria are hired based on referrals or recommendations from current employees of the company (if they do not meet the hiring criteria, they are not hired).

One obvious advantage is cost. Recruitment costs can be significantly reduced because we can recruit people without using paid services such as recruiting, job media, or recruitment agents. We also pay a small fee when someone joins our company, but it is almost free if you consider the cost of hiring a regular employee.

You may also be able to uncover people who are not registered in the job market (potential job seekers). Not all employees who are dissatisfied with their companies are registered on job search sites. However, a conversation with one of our employees will bring their dissatisfaction with their current position to the surface, and they will then consider changing jobs.

On the other hand, it is also important to be aware of the disadvantages inherent in referral recruiting, such as the emotional impact of rejection, the formation of friendship groups or factions, and the fact that the person referred may consider leaving the company when the referrer leaves. Major companies are already actively using this method, and even BizReach (the company name is Visional) is now said to be using referral recruiting as its main channel for hiring.

We have also received several referrals immediately, and some have already joined our company, while others are still considering it.

On the other hand, a blue-chip company in the same area pulled out a young ace factory operator as a referral hire. This was the most shocking event in recent years, as we had high hopes for the future. We have to think about defending our referral hires. It is no longer a deprivation.

While it is necessary to intermittently improve conditions in terms of compensation and benefits, we also felt that we must strengthen our relationship with our employees.