I was approached last week by an executive for a new company to remain nameless that came up with an innovative new concept… let companies offer cash referral awards for jobs.
Wow! This has been done many times since 1996 and this executive had done no research. While he’s a very pleasant guy, he and his team have missed the fact that every company that has tried this has failed for the same reasons. The basic reasons are that the job’s description is too generic, there is no guarantee of fair consideration, there is no follow-up and the average person needs more than money to serve up his friend. In other words, it takes more that a bit of gold to solve a complex problem like connecting the two people who matter, the hiring manage and the right candidate.