Yahoo! Finance does an interesting report:
The trend, experts say, has been amplified since the end of the recession by a tight job market and by employee networks on LinkedIn and Facebook, which can help employers find candidates more quickly and bypass reams of applications from job search sites like Monster.com.
Some, like Ernst & Young, the accounting firm, have set ambitious internal goals to increase the proportion of hirings that come from internal referrals. As a result, employee recommendations now account for 45 percent of nonentry-level placements at the firm, up from 28 percent in 2010.
Even getting in the door for an interview is becoming more difficult for those without connections. Referred candidates are twice as likely to land an interview as other applicants, according to a new study of one large company by three economists from the Federal Reserve Bank of New York. For those who make it to the interview stage, the referred candidates had a 40 percent better chance of being hired than other applicants.
Interesting!
{ 6 comments… read them below or add one }
Wouldn’t be surprised if its more.
how much comes from sex though?
I work for a large institution, and its the same thing. Nowadays if you want any job, let alone an interview, you have to network and you have to know people. Companies prefer to go with referrals rather than pick a random fish in the sea and waste company time and money training someone only to learn that the person is not right for the job.
Think about it, before you try out a new restaurant you usually ask your friends if they know a place that’s good, don’t you? Well it’s kind of the same thing with the hiring process. It’s rare you’ll try something completely new without asking around.
Does that make sense?
Thanks for breaking that down for us Kay. Couldn’t do it without you.
Hahaha
Is that all you have to contribute to the discussion? Next tie try giving some constructive criticism “Jerm”.