Is it madness to recommend a friend to your firm?
Some Australian banks are cautiously revising their employee referral programs to attract new talent (and save money on recruitment fees) ahead of an impending skill shortage in 2010.
NAB says it does not have a formal referral scheme across its entire group as yet, although it is trialling one within its business banking unit.
"We will look at the results of the business banking program over the next few months. We will then assess the suitability of applying a referral program across the broader business as part of our candidate sourcing strategy," explains Mark Devine from NAB's group recruitment division.
ANZ has existing referral plans in place, but they are now under review as part of a global revamp of broader HR policies.
Headhunters are of course big losers when staff recommendations lead to placements, but one senior recruiter says the schemes sometimes have merits.
"If the referrers are good themselves, then they'll usually recommend good people to an employer. However, the chances are that if the referrer is an ordinary employee, then they'll also suggest dunces," comments John Coles, CEO, Executive Group International.
One Sydney-based recruiter, who preferred to remain anonymous, tells of a manager who was left with an "entire team of rugby players" as a result of referrals.
"Employee recommendations can be good. But in this case the rugger players weren't the sharpest tools in the shed and the manager ended up being particularly unhappy," he adds.
Give us you thoughts on referrals below. Are they cut-price recruitment, giving firms sub-par candidates? Do they perpetuate old boys' networks in the banking sector? Or is it just great to have a mate at work (someone who you and your company can really trust)?
