Recruitment through Referrals or Cooptation
24 July 2009
Read by 1742 persons
Recruitment through employee referrals, or cooptation, started twenty years ago in the US and more recently in France. Companies encourage employees to suggest suitable candidates from their network. The power of word-of-mouth, current employment market pressures, and the difficulty in recruiting high-value managers and executives explain the growing success of this recruitment method.
E-Cooptation
Cooptation also exists online. While based on the same idea, online cooptation sites vary greatly in their models.
In the United States, there are two types of cooptation websites:
Jobster.com: Job postings are sent specifically to candidates matching the desired profile. Employers pay per posting.
H3.com: Uses a bonus system. The recruiter sends the job offer to their contacts, specifying the bonus amount. If the candidate is hired, the bonus is shared among everyone in the referral chain between the recruiter and the hired candidate. Finally, KarmaOne.com posts all job offers with the promised bonus for the person who submits the hired candidate's resume.
In France, two new cooptation websites have launched: Cooptin, launched by Keljob, allows for quick and cost-effective recruitment of qualified candidates; and Jobmeeters, presented as the first cooptation recruitment site. The recruiter posts the job; a site member refers a contact; if the referred candidate is hired, the referrer receives a bonus.
Advantages of Cooptation
Beyond the financial incentive, cooptation allows companies to recruit high-value profiles cost-effectively. The advantages are numerous:
- Integration: The referrer becomes the natural mentor for the referred candidate.
- Recruitment Quality: Ensures quality recruitment by a person who feels responsible for the outcome because they know the company and its challenges.
- Motivation: Shows that recruiting talent is a team effort.
- Time: Reduces recruitment process time.
- Cost: The cost per hire is lower than with traditional methods.
Limitations of Cooptation
Because employees are the best ambassadors for their company's professions, culture, and expertise, cooptation is a widely used method, but it also carries risks. It's unrealistic to believe cooptation only has advantages.
- "Cloning": Creating homogenous employee groups, all trained at the same school, is a major risk. The company may lose creativity, diversity, and intercultural understanding.
- Internal Networks: The formation of parallel networks that bypass the hierarchy is a real risk for management.
- Group Departures: Cooptation creates professional and friendly bonds that are often hard to break. Leaving with colleagues, or even starting a collective project, can be strategically advantageous.
The Team ReKrute.com
E-Cooptation
Cooptation also exists online. While based on the same idea, online cooptation sites vary greatly in their models.
In the United States, there are two types of cooptation websites:
Jobster.com: Job postings are sent specifically to candidates matching the desired profile. Employers pay per posting.
H3.com: Uses a bonus system. The recruiter sends the job offer to their contacts, specifying the bonus amount. If the candidate is hired, the bonus is shared among everyone in the referral chain between the recruiter and the hired candidate. Finally, KarmaOne.com posts all job offers with the promised bonus for the person who submits the hired candidate's resume.
In France, two new cooptation websites have launched: Cooptin, launched by Keljob, allows for quick and cost-effective recruitment of qualified candidates; and Jobmeeters, presented as the first cooptation recruitment site. The recruiter posts the job; a site member refers a contact; if the referred candidate is hired, the referrer receives a bonus.
Advantages of Cooptation
Beyond the financial incentive, cooptation allows companies to recruit high-value profiles cost-effectively. The advantages are numerous:
- Integration: The referrer becomes the natural mentor for the referred candidate.
- Recruitment Quality: Ensures quality recruitment by a person who feels responsible for the outcome because they know the company and its challenges.
- Motivation: Shows that recruiting talent is a team effort.
- Time: Reduces recruitment process time.
- Cost: The cost per hire is lower than with traditional methods.
Limitations of Cooptation
Because employees are the best ambassadors for their company's professions, culture, and expertise, cooptation is a widely used method, but it also carries risks. It's unrealistic to believe cooptation only has advantages.
- "Cloning": Creating homogenous employee groups, all trained at the same school, is a major risk. The company may lose creativity, diversity, and intercultural understanding.
- Internal Networks: The formation of parallel networks that bypass the hierarchy is a real risk for management.
- Group Departures: Cooptation creates professional and friendly bonds that are often hard to break. Leaving with colleagues, or even starting a collective project, can be strategically advantageous.
The Team ReKrute.com
