Question
I had to help out a former employee after we sold our real estate business. He was looking for sales opportunities. He did the usual thing of sending his resume via job boards and online applications, and had very little to show for it after a month or so. So I made a series of preemptive referrals.
I told him to give me one day – and I cold-called companies across the metro area for six or seven hours on his behalf.
I found 12 companies (who were hiring) that wanted to see his resume and three of them wanted to get his phone number and call him right away.
How did I do this?
“My name is Kevin – I’m wondering if you can help me. I’d like to speak to a sales manager or the person that hires for sales. [I rarely have issues with them wanting to transfer me to HR – but it does happen.]
“Hi, [Sales Manager] – Kevin Downey here. I’m former owner of LOBC in Leawood, KS, and my former manager is looking for a sales position. Really good kid and as loyal as the day is long. I’d like to get his resume in front of you – if you’re hiring.”
I let them answer or ask questions.
It’s easy stuff. He had a job within a week.
[Reader Kevin Downey posted this story as a comment on another Q&A column. It’s so good, I wanted to highlight it here!]
Nick’s Reply
Your script is how I learned to place job candidates when I started headhunting. It’s perfect — for anyone.
What most people who are job hunting don’t realize is, all they really need is one former employer or boss, or someone they’ve worked with, to make those referral calls. They might ask, Why would anyone spend six hours making calls like that for me?
It’s a very smart investment for anyone to make, to help a good person land a new job.
How referrals pay you back
- You as the referrer made a great new friend in the manager who hired that “kid.” You did that employer a favor!
- You have a friend for life in the person you helped land a job.
- Your reputation as a source of good hires will spread if you keep doing this. Establishing yourself as a credible hub of good business referrals will bring you loads of business for years to come — no matter what business you go into next. It may even lead you to a new job.
- The universe shines more brightly on people who do favors that change lives.
- Most important, you did a good deed — and no one has yet figured out how to calculate the total value of that ripple in the big pond of life.
Is it a lot of work to gift someone a job like this? You betcha. But, how much work is it to find yourself a job? Wouldn’t you love to have a favor like this come back around to you someday?
Employers actually pay for referrals
A personal referral is a fair investment for anyone to make, once they realize they will need a call like that themselves one day. I call it The Preemptive Reference.
For those who don’t realize it, this is what an employer pays a headhunter to do: make personal referrals, recommend someone, provide a reference to the employer in advance of a job interview. In other words, you’re doing most of the work for the employer. Employers love that. They’d rather hire someone through a trusted source than to wade through resumes and job applications from people they know nothing else about. They even prefer to pay a headhunter for referrals than to go find good hires themselves.
(Employers also offer referral fees to their own employees when they recommend a new hire. But there are two critical problems with most of these programs: The fee is usually too small, and there’s not enough proximity between the desired behavior (a referral) and the reward (the fee) to stimulate enough referral behavior that it makes a difference. These fees are paid months after the fact, and usually in small chunks.)
Investing in referrals pays — just don’t expect a return immediately or even from the person you invested in. The gift of a referral may get handed across many people before it comes back to you.
Many thanks to Kevin Downey for this lesson in how and why up to 60% of jobs are found and filled through personal contacts!
Have you ever done someone a solid of this magnitude? How do you define a “preemptive reference?” Has anyone ever gifted a job to you in this manner?
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Nick’s Quick Reply
Just say NO
We recently got a look at machines doing interviews — automated hiring. (
In engineering, it’s called a signal-and-noise problem. The point is to identify the signal before noise seeps into the system and obscures it. HR and robo-hiring vendors (“HR technology”) introduce more and more pre-processing into recruiting and hiring — and that adds noise. The best candidates — the signals — get lost or rejected long before any hiring manager gets to judge them properly. Managers can’t hear the best candidates.
In
I saw a disturbing story on Bloomberg:
It seems not to occur to the Goldman Sachs of the world that they can’t find talent because they’re not looking for talent. It’s the proverbial story of washing your hands with rubber gloves on. It’s surrogate interviewing. Outsourced hiring. To use another metaphor, rather than going out to meet the talent, Goldman Sachs is sending a robo-dog named HireVue with a note in its mouth. Machine interviewing.
I’ve got an idea to make it easier on graduates.
Your column
Reader 1: Back in the 20th century, employers actually reviewed resumes by reading them rather than scanning them into a computerized ranking system. Keywords have turned hiring into a pass-the-buck game, with HR complaining it can’t find talent! Well, HR isn’t looking for talent. HR isn’t looking for anything. Phony algorithms are keeping the talent unemployed while HR gets paid to do something else! The question is, what is HR doing?
Budget problems may impact hiring and internal promotions, but it’s HR’s job to make sure all the i’s are dotted and the t’s are crossed before HR makes offers that impact people’s lives. Don’t make job offers if you don’t have the authority to follow through. If your company doesn’t give you that authority, then quit your job because you look like an idiot for having a job you’re not allowed to do. What happens to every job applicant is on you. (See
The job of recruiting is about identifying and enticing the right candidates for jobs at your company. It’s not about soliciting everyone who has an e-mail address, and then complaining your applicants are unqualified or unskilled. You can’t fish with a bucket.
I have a standing challenge to anyone in HR: Give me one good reason why you need to know how much money a job applicant is making. No HR worker has ever been able to explain it rationally.
part of the workforce), there’s plenty of talent out there to fill the 5.6 million vacant jobs in America. (See
I can understand why companies want and need non-competes and NDAs, but I feel signing such contracts limits my future job opportunities; at least the ones that would pay me the most. So, I could refuse to sign, and they can refuse to hire me. If I want the job, it seems I’ve gotta bite the bullet. Perhaps I could sign the contract as “Darth Vader” and they won’t notice.
When a company wants to interview me, I apply your advice and try to exert some control by asking that the hiring manager be present at my first interview. I think it’s inappropriate for an employer to ask me to invest hours of my time without that manager present. It worked recently with a small advertising company, and it actually helped the two-way respect, and I felt more confident talking about the role and compensation.
Like my old mentor used to say, Use your judgment every step of the way, and do the best you can. And in the end, make choices — don’t let the other guy make them for you.