By Andrew Miller
According to the latest Small Business Optimism Index, labor quality is once again the biggest problem for small business owners. Over half reported hiring or trying to hire in April.
The struggle is finding skilled employees.
The rise of AI-generated resumes and the sheer amount of applications per job opening is creating headaches for hiring managers. They’re having trouble just keeping up, let alone finding legitimate candidates in the pile of exaggerated resumes.
As a result, unfilled job openings remain above the historical average. Among them, 29% were for skilled workers and 13% were for unskilled labor.
One solution to the AI-resume problem is encouraging more employee referrals. Referral hires were twice as likely to stick around after two years, compared to those from general job boards.
While your business may already have a “finder’s fee” employee referral program, here are four ways to take it to the next level:
Make the openings visible.
No one wants to dig through the company website or HR email chains to find the latest openings.
Simplify the process.
Typically, this involves uploading a resume, writing a relationship description, and a long form pitch. Instead, let employees simply list a name, email, role, and optional note. Hiring teams can handle the rest.
Send status updates.
All too often, an employee will hear crickets after referring someone for a role. Consider sharing updates such as “received and under review,” “moving to interview,” “not progressing,” or “hired.”
Acknowledge the wins.
Some employees may refer multiple candidates each year. Aside from the common finder’s fee cash bonus, encourage them with visible credit when their referred hire starts. You can also thank them with a personal note or a company memo.
After all, the best hire you make this year might already be in someone’s contact list.
P.S. If you need working capital to support your next hire, Signet Capital Group can help. Get in touch here.