Is it a good idea to refer your friend to your employer?

In this series, manpower reporter Tay Hong Yi offers practical answers to questions on navigating workplace challenges and getting ahead in your career.

Q: A friend asked me to provide an employee referral for a job opening in my company. Should I agree?

Employers often implement referral programmes to tap their employees’ networks and benefit from the recommendation of individuals who are already familiar with the company culture, says Dr David Leong, managing director of PeopleWorldwide Consulting.

He says: “These schemes are established with the aim of attracting high-quality candidates who are more likely to fit seamlessly into the organisation.”

Mr Goh Duo Geng, director of strategy and operations at talent recruitment and matching platform Glints, says that referral schemes are a valuable tool for modern businesses that expedite the hiring process, reduce recruitment costs, and enhance team cohesion.

Both experts note that such schemes can be particularly effective in industries where niche skills are required.

“This is because employees in these sectors often have a deep understanding of the qualifications required,” Dr Leong says, adding that technology, finance and healthcare are among the industries for which referral programmes are more common. 

Mr Goh advises employees to weigh several factors when deciding whether to make a referral, as there can be downsides for employees whose recommendations turn out to be unsuccessful.

Employees should assess whether the candidate possesses the necessary skills and qualifications for the job, consider the candidate’s compatibility with the company’s culture and values as well as ensure that the candidate is genuinely interested in the role, he says.

Mr Goh says: “Repeated unsuccessful referrals can harm your credibility, and recommending a candidate who underperforms can damage your reputation.”

He adds: “To mitigate these risks, it’s helpful to disclose any areas of uncertainty or unfamiliarity when making a referral.”

Dr Leong says: “Referred candidates who don’t meet expectations may strain working relationships and impact the morale of the team.”

He adds: “The employee should communicate openly with their supervisor, explaining the referral’s performance issues, if any, and offering solutions or additional support to rectify the situation.

“Being proactive in addressing problems can help minimise any negative consequences.”

To minimise the risk of making a bad recommendation, Mr Goh suggests employees try to view the potential referral through the lens of the company and the hiring manager. This means focusing objectively on the candidate’s abilities and alignment with job requirements, regardless of any personal sentiments.

Mr Goh also says employees should actively seek feedback from the company, hiring managers and the referred candidate after a successful placement.

“This feedback loop helps refine the decision-making process for future referrals.”

This article was originally published in The Straits Times.