Employee referral — the recruitment strategy tailored to gen Y and gen Z’ needs

Contrary to common belief, hiring people has not always been about what we see today as the standard practice: reading CVs, shortlisting, holding interviews. Recruitment strategy and tools have evolved side by side with generations, economy, work tools.

Way back, physical attributes were the only criteria in recruiting. If you were vigorous enough to go to war or work the land, you were hired. On the spot.

Baby boomers, the generation born after the World War II and their successors, generation X, were the ones who focused on building a career. Employers, at the other end, had to listen and adapt, so hiring based on competencies and employee engagement strategies were born. What evolved ever since then until nowadays were mostly the tools or means for recruiting: from advertising open jobs in local papers to posting them on dedicated web portals, once Internet made it possible; from creating recruitment departments within companies to outsourcing recruitment to external agencies; from face to face interviews to online interviews.

Today, we have a workplace where at least three generations come together, each of them with their own values and views on life:

Generation X: born in 60’s and 70's

Drivers: career stability, work-life balance, preference for hierarchical organization

Behavior/personality: pragmatic, highly educated, open to technology but keen on human communication.

Motto: Work hard, play hard

Iconic achievers: Michael Dell (Founder, Dell), Elon Musk (Founder PayPal, Tesla), Steve Easterbrook (CEO McDonald’s)

Generation Y also called Millennials: born in the 80’s and early 90's

Drivers: work challenges, need for feedback and mentoring/training, meaningful careers seekers, flexible working environment, telecommuting

Behavior/personality: job hoppers, multitaskers, technology savvy, self-starters, self-entitled, optimistic, team players.

Motto: What’s in it for me?

Iconic achievers: Mark Zuckerberg (Founder, Facebook), Pete Cashmore (Founder, Mashable), Blake Aaron Ross (Founder, Mozilla Firefox)

Generation Z: born in the mid 90’s and first decade of the 21st century

Drivers: entrepreneurship, transparency, incentives, making a difference, travelling, telecommuting

Behavior/personality: individualists, digital natives, risk takers, networkers, live at a fast-pace, quick learners, self-taught

Motto: Sky is the limit

Iconic achievers: Malala Yousafzai (Activist, author of “I am Malala” bestseller, 20 years old), Karen X. Cheng (content creative solopreneur, 29 years old), Mikaila Ulmer (Founder, Me & the bees lemonade, 12 years old), Mihir Garimella (Founder, Firefly, 17 years old)

So, here we are, standing at a turning point in hiring, because we want to deal with generations of people who evolved so differently, with more or less the same tools as 50 years ago. No wonder recruiters face challenges in attracting talent, especially talent from the newest generations Y and Z. And while the generation Y has revealed its strength and weaknesses, generation Z whose youngest members are just about to go to college is still wrapped in mystery.

How can recruiters attract the best from the Gen Y and Gen Z pool of talent already active in the workforce market? And, equally important, how can they gear up to welcome those who are just starting their careers or prepare to do so in the next years?

Networking, the new way of hiring and getting hired.

Wonder why your job ads don’t return anymore many and high-quality applications? The answer is simple: because younger generations don’t hunt jobs the same way as their older fellows; they wait for companies to hunt them. They don’t trust “blind” recruitment either, they want to know their potential future workplace in-depth and decide, based on the info they pick, if they fit in.

According to the Monster Multi-Generational Survey published in 2016, 41% of Gen Z representatives expect help from family and friends for finding their next career opportunity, and 54% say they will use their social and digital network on this purpose.

Talentspotting research has shown that referral is the most effective recruiting channel, with a hiring rate of 1 out of 5. Nonetheless, employee referral programs remain underused by companies.

Just having a referral program doesn’t guarantee its success. A consistent strategy must be built around it, including technology easy to use, communication towards employees, a plan to engage employees as brand ambassadors and determine them to spread the word about open opportunities. Last, but not least, recommenders need transparency on the status of the applications to sustain continuity of the next employee referral campaigns.

Here are a few tips on how you can build an effective employee referral strategy that “speaks your candidates’ language” and meets their needs.

1. Be as tech-wise as the new generations are

Generation Y is enthusiastic about technology, and they realize the value technology brought to their life, but generation Z practically didn’t know the world without high-tech. Therefore, don’t be surprised if they don’t respond to calls to action that are not automated or possible to perform using a software. One of the main reasons why businesses fail to implement consistent employee referral programs is that they apply the principle, but don’t provide performant technology to translate it into action. 37% of the companies claim they accept referrals but don’t do anything specific to facilitate it. In Talentspotting referral software, the employees you select as recommenders can reach all their digital network in one click and share the open opportunity with their connections, upload a CV or email someone.

2. Hire in the fast lane, just like the new generations live

When you are not backed-up by technology to screen Cvs, filling in an open position can last even months. But you are supposed to be recruiting people that use an app for everything that seemed complicated decades ago, from dating to splitting the check after having dinner with friends and counting the number of steps they take each day. With an employee referral program in place, recruiters will experience an unload when it comes to screening CV, as the quantity of applications decreases and the quality gets better.

A significant part of the job is also taken over by the employees themselves, who often assess the fit between candidates they have in mind for recommending and the organization. A referral software that comes with an automatic matching algorithm between jobs and candidates, as Talentspotting solution does, will help you close recruitment projects faster and better.

3. Develop an “intrapreneurial” organizational climate where people feel empowered to participate in recruiting

Generation Z is considered the most entrepreneurial we’ve witnessed. They have grown up with Mark Zuckerberg, who started Facebook in his university dorm, as a role model. Generation Z includes kids running multi-million dollars businesses, by selling cookies or refreshments, cosmetics for teenagers or simply inspiring communities through their work or personal example. Their older brothers and sisters from Gen Y are no less: they were the first to be freelancers and digital nomads.

They are all free, unsettled, fierce and independent, on the one hand, but they value the stability, on the other hand. And this is where the sweet spot between talent and companies is born. Gen Y and Z need a workplace where they are encouraged to take the initiative. An organizational climate where they would feel the drive to take the same actions they would take for their own business. Being involved in the recruiting process, as employer brand ambassadors, having the same visibility on recruitment projects as HR teams members, is just one of the easiest ways to feed their constant need for making a difference.

4. Reward and acknowledge contributions to increasing the pool of talent

It’s not just about money. Generation Y and even more generation Z are on the lookout for rewarding experiences. Having their contributions noticed or being publicly rewarded with a trip or other experience boosts their engagement more than slipping an amount of money in their pockets.

5. Offer transparency and feedback on the status of their contributions

Y and Z are two generations that have seen many: from wealthy and prosperous times to economic recession, followed by layoffs; from peace to terror attacks. If there is something that dismantles them, this is not the worse scenario revealed, but rather the lack of transparency. Don’t forget that they are the generations who played World of Warcraft, upon clear rules, for motivating rewards, developing a risk-taking attitude.

In a way, these are the values they bring to the table at work. Therefore, ensure an organizational culture that offers transparency on the company’s outlook, but also on the status of their actions. When you enroll your employees into referral programs as recommenders, don’t treat the leads they bring in as something casual. Offer transparency on the status of the applications and give feedback on their contributions on every occasion.

History has a way of happening in cycles. On the workforce market, the new generations Y and Z iterate some of the features we’ve seen at Baby Boomers and Generation X, such as a sense of responsibility and a strong desire to achieve. But new challenges for recruiters come along with their free entrepreneurial spirit, the appetite for networking and hi-tech almost innate skills. What worked yesterday doesn’t seem to work today and what works today will likely not work tomorrow anymore. Relying on tools that facilitate employee referral and save you time by automatically matching candidates and jobs is becoming an imperative for a recruitment strategy adapted to the present and oriented towards the future.

Talentspotting enables businesses to turn their employees into brand ambassadors and help them reach a larger pool of talent, by exposing job openings to one’s digital networks, in one click. Have a look at our solution and contact us to discuss further on how to help your employees advocate for your employer brand through top-notch referral technology.