Human Resource Bounty Hunters

As we have learned in our text, Recruiting is one of the activities of the human resource department and is defined as the process of attracting qualified applicants.  This article sheds light upon another way companies can find qualified people to fill positions.  Recruiting is a costly process, so the human resource department looks for better ways to find employees.

Employers from Santa Clara County in Silicon Valley are always looking for workers and are not satisfied with simply looking at resumes.  Some businesses in Santa Clara County have decided to give generous rewards to current employees who bring in friends as new hires.  These companies have found that giving incentives to get new hires provides many advantages.  Using incentives to find new employees is cheaper than going through employment agencies, plus it increases morale and loyalty within the company.

The rewards given to employees who refer their friends are impressive.  At Adobe, employees get $5,000 for each referral and a $5,000 vacation voucher for every third referral.  Docent not only gives $5,000 for each referral, but they also give out prizes once a year for people who refer their friends.

It is cheaper to offer incentives than to go through an employment agency.  Employment agencies can charge up to 30% of the hired employee’s annual salary.  Incentives to current employees range from cash bonuses to BMWs.  Businesses have found that using perks versus employment agencies is very advantageous.

Incentives increase morale within the company.  Current employees are always looking for ways to make extra money and working with friends makes the work environment much better.

Loyalty is also an effect of hiring friends of current employees.  People are likely to work for a company longer if they are working with their friends.  This works both for the current employee and the friends he or she brings in.  This intangible asset is highly sought after in the human resources department.  Businesses strive to keep the employees they currently have because of the high costs of finding new ones.  This is why businesses are so concerned with the happiness of their employees.

Companies that use this method of finding new hires can determine if their employees are pleased with the workplace based on how many people are recruited through this system.  Employees will recommend working for a company when they know that they are treated fairly and when they have a nice working environment.

Companies can save money and increase their worker’s view of the company by rewarding the employees who refer their friends.  This gives us a better understanding of the methods the human resource department uses to hire employees.



About The Author


Eric Vanderburg

Eric Vanderburg is an author, thought leader, and consultant. He serves as the Vice President of Cybersecurity at TCDI and Vice Chairman of the board at TechMin. He is best known for his insight on cybersecurity, privacy, data protection, and storage. Eric is a continual learner who has earned over 40 technology and security certifications. He has a strong desire to share technology insights with the community. Eric is the author of several books and he frequently writes articles for magazines, journals, and other publications.

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