Whether you’re building a new team from scratch or looking to add people to an existing team, hiring for the perfect intersection of skill and fit can be a challenge for culture-driven organisations. Your first instinct may be to look for untapped or underutilised talent internally, and your second instinct, to incentivise staff to refer people they think would be a good fit. While there are certainly benefits to both of these practices, there are some limitations as well.
Let’s talk benefits first. Yes, hiring for new positions from within the organisation creates opportunities for growth and development. Sometimes, for example, people find themselves at a school they really love, but in a position that isn’t quite right for them. Being focused on the company likely means they’re a good culture fit, and being allowed to move into the right role could increase their likelihood of staying on board and reinforcing the loyalty they already feel.
Staff referrals are considered a prime source for hiring talented and engaged employees who fit into the culture of an organisation. Not only do people want their schools and other organisations to succeed, but they also tend to feel their reputations are at stake, so there’s a strong incentive to recommend strong candidates. And according to Gallup, employee referred candidates often interview very well and often lead to great additions to the staff.
However, there are some drawbacks to employee referrals and the casting of too narrow a hiring net. For organisations that value diversity it’s important to stretch outside of the scope of people already within the organisation and beyond employee referrals. Employee referrals might lean toward a specific skillset or cultural background. They might even lean toward a specific university or vocational training program. And ultimately, employee referrals aren’t a good approach to acquire a diverse pool of candidates.
Just as organisations must be intentional about building and maintaining a values-based culture, they must also be intentional about maintaining a healthy and diverse pipeline of possible candidates. This means balancing the development of current employees and considering employee referrals, but remaining objective and open to the possibility of hiring.