The Frog Blog

Ribbiting News in the World of Recruiting

Break Out Of Your Little Referral Circle.

Posted by Michael Bachman on Aug 27, 2019 2:16:09 PM

The first question most people ask when the idea of an external referral program is broached is, “What’s an external referral program?!” .


Confused Girl

Most professionals are familiar with internal referral programs, and many likely use them frequently when trying to fill positions. You may be one of them. You’ve got nicely designed promotional materials and an enticing reward structure that includes cool prizes, cash, time off, and other powerful incentives. And yet you still find yourself with positions you can’t fill, and inevitably you fall back on job boards to fill in the gaps.


Why aren’t internal referral programs more effective? Depending on the size of your organization, the total audience for your recruitment efforts can be fairly small. Even the total staff at a larger company is tiny compared to all the people that don’t work at your company. The chances that your perfect candidate just happens to be in the social circle of an existing employee is fairly small.

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But what if there was a way to tap the social networks of the greater population? What if you could offer incentives to people you’ve never met in order to motivate them to refer qualified candidates? That is what external referral programs do, and they can be extremely effective for finding great candidates, quickly and affordably.

How Would an External Referral Program Work?




Internal programs are somewhat easier to manage. You have a captive audience and you know all of their email addresses. It’s easy to send out promotional materials, and in some cases your coworkers can simply walk down the hall to deliver their referrals.


Expanding out beyond your internal resources gets exponentially more difficult. Certainly you can expect some of your employees to share job postings with their social networks, and you can share with your social networks, but it’s unlikely that friends in these social networks will share your postings to their social networks. They have no incentive to. You can’t offer time off to someone that doesn’t work for your company. And the accounting necessary to extend cash prizes to friends of friends of employees would be a major headache.


Internal  External


Being able to reach such a massive network of people would be wonderful, but the logistical problems mount the further you go. How do you track an external referral program when you don’t know 99% of the people participating? How do you share new postings with them? If you could work out a system of payment, how would you fulfill? What are the tax implications? Do you need to send out 1099s?


As powerful of a recruitment tool as an external referral program would be, it would seem that the logistical problems render the concept unviable. And it was an impossible task, until Preferhired made it a reality.


Preferhired is External Referrals Made Easy.


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At Preferhired, we’ve tapped into the power of the gig economy to create an ever growing network of external recruiters that are paid when qualified leads that they submit are accepted & hired by people like you. You get access to thousands of social networks through committed recruiters that are motivated to find quality candidates.


Job posters have precise control over the requirements for their desired candidates, and only pay referrers a reward if their candidate is selected. You get to decide how much your rewards will pay, and this amount can be changed at any time. This allows you to start low and then raise your rewards until your position gets traction. You’ll never pay more than you have to ever again.


You’ll get quality candidates sent directly to your inbox. We provide tools to help you pursue your candidates, refine your posts, and approve the candidate that you select for the position. If you don’t find an appropriate candidate, the service costs you zilch, zip, nada, nothing! But with such a large network of devoted referrers working to win your recruitment reward, you’re almost certain to find the right candidate for the job.


I like it a lot


On top of everything else, Preferhired is affordable. Besides the reward levels, which you set, we charge a modest service fee $0.25 for every $1 paid out to recruiters is all the service will ever cost you. This is a small price to pay compared to what it costs for job boards other recruitment options. It's pay only for success!


With Preferhired, external referral programs are not only possible, they’re also inexpensive, easy to manage, and extremely effective. You can even use the model as an internal program. Basically, you get the best of both worlds!


The next time you’re looking to fill a position, give Preferhired a try. You have nothing to lose and everything to gain. Your perfect hire is waiting for you. You just need a wide enough net to find them. We are that net. Go to to learn more!

Topics: referral programs, employee referral program, preferhired, high volume recruiting, referral hiring, employee engagement, employee referral programs, employee referrals, seasonal hiring, retail hiring, referrals

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