Client and Candidate Referrals


Forty percent of your new clients and candidates should be referrals. If that is not the reality in your business, chances are you do not have a specific referral process that is being implemented by your team. Clients who are referred hire faster and candidates who are referred provide answers that are not guarded. This is due to the inferred level of trust.


The best way to obtain referrals is by developing a referral process, word-of-mouth advertising and lateral marketing. This is where you send something to another person, and they share the information with others. Most individuals make decisions based on the approval of others, which is why referrals are so valuable to your business and success.


Asking for referrals should become part of the questions you ask automatically during various steps in the placement and fill process. It doesn’t matter which segment you place (direct, temporary or contract). You will receive more referrals when you develop a process that is followed by everyone in your office, including your front desk and other support positions.


If candidates think their referral might be their competition, your referrals will be drastically reduced. Assure your candidate that they will be sent out first on any position where their qualifications match their referrals. Use these six words to dramatically increase referrals “from your last place of employment.” There is no loyalty to past employers and if you ask, “Who was the best (insert job title) from your last place of employment?” it eliminates the answer, “I don’t know anyone.”


Assure your clients that you have some existing clients who are not going to hire from you this year, which is why you are attempting to find new clients. Let them know that their orders, contracts and assignments will always be a top priority. Business people like to refer good resources to their business associates because it makes them look good.


It’s important to acknowledge both candidate and client referrals. I find it surprising that many people don’t even send a thank you card or acknowledge that a client or candidate was referred. How many people would you refer if you never heard the words, thank you? If you do compensate for referrals, you only pay for referrals that end up as a fill or placement.


For temp and contract, include a minimum assignment length on the referral fee. Often you can provide a gift certificate, public transportation voucher or pre‐paid credit card to enhance your referred business. When your clients and candidates realize they only receive something when the job is filled or a candidate is placed, the caliber of their referrals improves, which benefits both of you. We pay for candidate referrals only when the referral is successfully placed at one of our client companies. Our referral fee increases with each placed referral. Every time a referred candidate is placed, the individual who referred that candidate receives a ticket for the annual drawing. In December, we hold the drawing at a cocktail party. The free PR and exposure we get from the trip dramatically increases referrals.


You will receive more client referrals if there is some type of recognition or acknowledgement involved. These referrals can be generated by candidates or clients. There are many laws that prevent clients from accepting gifts, so we donate 5% of total fee or GMP (Gross Margin Profit) for 30 days to their favorite charity with the following inscription engraved on a plaque that we purchase. This is presented to (clients name) For Their Generous Contribution to (name of the charity) Presented (your company name) Date.


People do things for their own reasons. It was no coincidence that our client referrals tripled when we began to donate to their favorite charity in their name. Word-of-mouth advertising also increases referrals.


BONUS TIP: Your referral process must become a system that is taught and implemented by 100% of the people in your office. If it becomes a consistent process that is implemented, only then will you receive the level of referrals your business deserves. Set up processes that happen with or without your sales team to consistently produce referred candidates and clients. Put someone in charge of your referral program, decide on a team and track the greatest resources for referrals so you can continually improve the number of referrals generated. Follow the advice and 40% of the new top talent and clients you attract will be the result of referrals.


We care about your success. You can trust that every training resource and program have provided results for our clients.


Good As Gold Training
6686 Van Buren Place Merrillville IN 46410

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