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Ribbiting News in the World of Recruiting

Don't Fall Into The Recruiting Black Hole

Posted by Michael Bachman on Apr 26, 2019 12:05:36 PM


Scientists recently managed the first image of a black hole in space. And as momentous an event as this was, it doesn’t affect Preferhired Referrers as much as client black holes do. These are black holes we’re trying to avoid, not catch on camera. Client black holes behave in a way that is unfair to our Referrers, and at Preferhired, we take the people on both sides of our referral hiring equation equally seriously. So client black holes are a problem we’ve worked to alleviate.



What Are Client Black Holes?


BLACK HOLE newsletter image


To explain that you first need to understand a bit about how Preferhired works (if you don’t already know).


Preferhired candidates are referred to job postings created by employers (clients) from our extensive network of independent gig recruiters (Referrers), their extended social networks, and the social networks of the clients themselves. Employers set dollar rewards that are paid to Referrers at various stages as the candidates move through the Preferhired process.


There are three stages where rewards are paid; The client will pay an Apply reward when the candidate submits a qualified apply, an Interview reward when the hiring user wants to engage the candidate, and a Hire reward when and if the candidate is on boarded.


Because Referrers depend on candidates moving through the process in order to get paid for their efforts, we expect that clients will respond to prospect candidates quickly when decisions are needed. When clients don’t get back to candidates in a reasonable amount of time, we call this a client black hole, because candidates go in, but no decision ever escapes.



How We Avoid This Situation


We know how successful referral hiring can be, delivering a lot of qualified candidates, each needing to be evaluated individually. Businesses can sometimes become overwhelmed or may have other things going on that pull their attention. Our system only works when Referrers know they can depend on their candidates either getting rejected promptly or being moved forward so that the Referrer can be paid.


So we’ve instituted a small penalty as an incentive for clients to review candidates in a reasonable amount of time. If a given candidate is awaiting word whether they’ll be accepted to interview, for instance, clients are required to respond with a “yes” or a “no” within 14 days.


If they don’t, Preferhired will automatically move that candidate into the Accepted phase and bill for the reward amount the client previously set, passing those funds onto the Referrer.


All clients are made aware of this policy when they begin working with us, to make certain no one is surprised. And clients know that there is never any charge for rejecting candidates. All they need to do to avoid getting billed for candidates they may otherwise not have opted to interview is simply reject those candidates within two weeks, which is a fairly generous period of time.



Does it Work?


Yes! For the most part, our clients are wonderful, considerate professionals that understand how the Preferhired system works and do their absolute best to promptly accept or reject candidates. However, for the small percentage that, for whatever reason, can’t get this done in two weeks, our auto-advance policy can supply the necessary motivation to do what needs doing.


But if it doesn’t, and they continue to occupy black hole status, the policy makes certain Referrers aren’t waiting indefinitely to hear whether they’ll be paid or not.


That’s ultimately why the policy exists. Client black holes are unfair to the referrers that depend on their answers. Referrers did their job, providing a candidate from their personal network. It’s only fair that they either be compensated for that within a reasonable amount of time or they hear a “no” so that they can move on to their next referral.


So whether auto-advance changes the behavior of client black holes or not is really incidental. The important thing is that our Referrers get fair compensation for the work they put in, in a fair amount of time.



Referral Hiring Works, Black Holes or Not


Client black holes can throw a wrench into the process, but our auto-advance policy readily deals with it and makes certain that, even with bad behavior, our process works. Referral hiring remains a powerful method for getting quality, qualified candidates sent directly to your inbox.


If you’re a black hole, know that we’re watching you. But we also still appreciate you. Your business is important to us. Maybe try and get a little better about offering a prompt response to your referred candidates? The people that sent you those candidates are depending on you and it’s important for your company’s brand / image.


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

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