Introduction
As the job market evolves, so does the hiring process. With multiple options available, recruiters and HR professionals have to decide between job boards and referral-based hiring.
Job boards offer a platform for employers to post vacant positions, and candidates apply through the portal. Referral-based hiring, on the other hand, involves leveraging existing employees or networks for job referrals.
Both methods have their advantages and disadvantages. In this blog post, we will provide a factual, unbiased comparison between job boards and referral-based hiring.
Job Board
Job boards have been around for a while and have revolutionized the hiring process. According to TalentLyft, a job board can receive an average of 250 resumes for one job opening. Despite the numerous resumes, only 2% of candidates get hired through the job boards.
Job boards provide the following advantages:
- Job boards increase the number of resumes: Job boards reach a wider audience and attract a more diverse set of candidates.
- Job board helps in employer branding: Job boards provide a glimpse into the employer’s culture, work environment, and job benefits, thereby helping in employer branding.
- Job boards provide information on the job market: Job boards provide insights into the latest job trends, salary ranges, and job descriptions.
Although job boards provide larger and diverse candidate pools, the cost of acquiring a single candidate through a job board can be high.
Referral-Based Hiring
Referral-based hiring is gaining popularity in recent years and accounts for 33% of hires. A study by Jobvite has shown that referral-based hiring can reduce the time-to-hire by 55% compared to hiring via traditional job boards.
Referral-based hiring provides the following advantages:
- Referral-based hiring can be cost-effective: Since the employees are doing the recruiting, the cost-per-hire decreases, and the ROI increases.
- Referral-based hiring improves the quality of hires: Referral candidates tend to have longer tenures, perform better, and require less time-to-productivity.
- Referral-based hiring helps in Diversity and Inclusion: Referral programs can bring in candidates from diverse backgrounds, including gender, ethnicity, and other underrepresented groups.
The pitfalls of referral-based hiring include a limited candidate pool and the potential for inbreeding.
Which is Better?
There is no one-size-fits-all solution when it comes to recruitment. Both job boards and referrals have their benefits, and the choice depends on the company's needs and requirements.
Referral-based hiring is most effective at the entry and mid-level to save the company's recruitment costs, reduce time-to-hire, and improve quality and diversity. In comparison, job boards are preferable for senior-level professionals and specialized skill sets as the reach is wider.
Conclusion
Hiring the right candidate is crucial to business success, and the recruitment process plays a significant role. Recruiters have an option between job boards and referral-based hiring, with both offering advantages and disadvantages.
A blended approach to recruitment can be the best solution, with job boards and referrals complementing each other to create a balanced recruitment strategy.
Remember, HR is all about achieving harmony between employees and the company. So, go forth and recruit in a way that benefits both parties.
References
- Jobvite. (n.d.). Jobvite. https://www.jobvite.com/
- TalentLyft. (n.d.). TalentLyft. https://www.talentlyft.com/en/
- SHRM. (2022). Referral-based hiring tool. https://www.shrm.org/resourcesandtools/tools-and-samples/hr-forms/pages/referral.aspx