Employee referral programs work in all economies

Eighteen months ago, finding good help challenged certain industries.

?Before this recession, retail was the most difficult, then medical and high technology,? said Jackie Osborn, president of Boulder Staffing Inc. ?Now (it is) health care.?

To fill in the gaps, employers such as Avista Adventist Hospital in Louisville have been offering referral bonuses to current employees for recruiting friends and family to work at Avista. As is typical for these programs, employees received a bonus after the referral was employed for 90 days.

?Certain jobs, like night-shift nurses, offer $1,000 for full-timers,? said Cinnamon Pettyjohn, an administrative intern.

The program has been working, according to Avista Vice President Dave Smith. ?We’ve had a strong referral base from our employees for a long time,? he said. ?People understand our culture and tend to recommend folks who would enjoy our culture.?

Despite layoffs, folding companies and downsizing, the health-care and retail industries are still rewarding workers for bringing in new employees.

?Even with the (slow) economy, we’ll always have that need for health-care (employees),? Pettyjohn said.

Some retail stores also seek help.

OfficeMax in Boulder, for example, is still offering employee-referral bonuses, but this may be in part because of a seasonal need, according to the store manager, who asked not to be named.

?The program has worked on and off,? he said. ?In retail, there’s always times to hire people.?

Foley’s in the Crossroads Mall in Boulder was offering employees store gift certificates for referring new employees.

?It was a very successful program,? said Pricilla Thorne, a store spokeswoman. ?But the program is no longer in place. We had an abundance of people applying for positions.?

These employers all agree that referral programs offer them many benefits.

?Anyone who can refer someone or vouch for them is very valued in our organization,? Pettyjohn said.

Referrals from friends and family members can benefit job seekers in a similar fashion.

?If you can find someone in the company, if you can use their name, it gives you more credibility,? said Rosemary Arp, career services manager for YWCA Career Services in Boulder. ?It’s a way to get your foot in the door. Referrals are helpful no matter what the economy is, but they can give you an edge over someone who didn’t have them.?

The manager of Boulder’s OfficeMax agrees. ?If I have a good employee who refers someone, that’s an advantage,? he said.

Carle Churgin, owner of Boulder-based Churgin Communications and Coaching, also sees the value of inside contacts.

?The people you know are really important,? she said. ?It is true no matter what the economy.?

Arp recommends job seekers to ?go through their network of people and try to develop contacts within a company or industry they want to target.

?Start asking around. Call friends and ask if they know anyone who works at that company,? Arp said. ?When you go to get your haircut, ask the hairdresser. Ask everyone. It’s amazing how you can turn up contacts.?

Contacts don’t need to be direct, either. They may not work for a certain company, but they know someone who knows someone who knows someone,? Arp said.

Churgin, who provides ?whole-life coaching,? sees referrals as not only a means of staying employed, but also as a way to expand one’s career horizons. ?If people are suddenly in the job market, there’s an opportunity to find a job that’s fulfilling to them,? she said.

Knowing what one is getting into is vital to switching careers.

?Do some interviews with people about what it takes to get into that position,? Churgin said. ?Referrals are a great way to find work because there’s no rush to it.?

By encouraging a slower-paced job search, referrals may help displaced workers discover what they really want to do with their careers.

?If people really follow their heart and go for (employment) where they will make the most difference, the job will fall in line because they’ll be an asset in that position,? Churgin said.

People seeking new careers should not let their enthusiasm sabotage their efforts. ?Be very targeted, not with an ?I can do anything’ approach,? Churgin warned.

But changing industries isn’t always the answer for established professionals. ?If people have proven that they have done well, staying within the industry and the people they’ve known can also help them find opportunities,? Churgin said.

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