Not all referrals are the same. If you want your hiring process to be as effective as possible, you need to understand the difference between direct referrals and social shares and why direct referrals give you better results.

In this article, we’ll explain why direct referrals outshine social shares 4-to-1 and how you can make the most of both to improve your recruitment efforts.

Understanding Direct vs. Social Referrals

Let’s start with a quick breakdown of the two types of referrals:

Direct Referrals

These are recommendations from people who know both the candidate and the company. A direct referral is often a personal recommendation from someone within the company or an insider who understands the job requirements and expectations.

This type of referral is typically based on a personal connection, ensuring a better fit with the company’s culture.

Social Referrals

This happens when someone shares a job posting with their network on platforms like LinkedIn, Facebook, or Twitter. The person sharing the post may not know the candidate personally, and it’s not a direct recommendation.

Instead, it’s more about spreading awareness, hoping someone in their network will be a good fit and apply. Social referrals are valuable for reaching a larger audience, but they lack the personal connection and endorsement that comes with direct referrals.

Why the Distinction Matters

Social referrals expand your reach. A single LinkedIn post can surface hundreds of second-degree connections. But without a personal connection, there’s more work to vet quality and fit.

Direct referrals, on the other hand, come with context. These candidates are nearly 3x more likely to be hired and stay longer in the role.

Why Direct Referrals Perform Better

Direct referrals convert into hires at a higher rate compared to social shares, and it all comes down to the fact that direct referrals are a better fit. Here's why:

• Direct referrals come from people who actually know the candidate. They’ve worked with them and know if they’re the right fit.
• The person making the referral is accountable. If the candidate doesn’t work out, it reflects on them, so they’re only recommending people they trust.
• Social referrals are more about spreading the word. Someone shares the job post, but they’re not personally vouching for the candidate. They don’t have the same level of investment.

Where Social Shares Fit In

Direct referrals should always be your top choice for high-quality hires, but social shares still have a place in the strategy. They’re not a replacement, but they help get the word out and expand your reach, especially for general or entry-level roles.

That said, social shares generate awareness, not commitment. They don’t come with trust or context. Direct referrals, on the other hand, are personal and come with accountability.

Social shares are used to grow the funnel and help with visibility and volume, but when it comes to quality, direct referrals are still the way to go.

Why Most Referral Programs Fail to Differentiate (And Why That’s a Problem)

One of the biggest mistakes with referral programs is the failure to distinguish between direct and social referrals. Too many platforms treat them as the same thing, assuming they function in the same way. This is a huge missed opportunity.

When you treat direct and social referrals the same, you’re not using the full power of either. The main issue is that most programs don’t track or reward these referrals properly.

Direct referrals are more focused, and the person making the referral has a personal interest in the outcome. They should be rewarded with better incentives for the time and effort they put into their recommendation.

Social referrals, on the other hand, have no personal connection to the candidate, so the goal is to spread the word. The rewards for social referrals should focus on encouraging people to share the job post, not necessarily finding the best-fit candidate.

If you don’t recognize the difference, you’re not using either strategy to its full potential, which can hurt your recruitment efforts.

How to Track and Incentivize Both Types of Referrals

To get the most out of your referral program, it’s essential to handle direct and social referrals differently. Here’s how:

Direct Referrals:

• Bigger rewards: Offer bonuses, extra time off, or special recognition for those who refer candidates personally.
• Track candidate quality: Measure how well-referred candidates fit with the role and team culture.
• Time-to-hire: Keep an eye on how quickly direct referrals get hired.
• Cultural fit: Ensure the candidates referred directly match the company’s culture and values.

Social Referrals:

• Smaller rewards: Offer gift cards or shoutouts in company-wide emails to encourage social sharing.
• Track engagement: Measure how many shares the job gets on social media.
• Click-through rates: Track how many people click on the job posting shared through social platforms.
• Applicant flow: Monitor how many applicants come through social channels.

By differentiating and properly tracking both types of referrals, you can ensure your program works more effectively and leads to higher-quality hires and better engagement.

Boon allows employers to separate social referrals from direct ones, so they can measure each channel’s performance and scale them accordingly.

When you know the source, you can optimize the results.

Success with Differentiated Approaches

We’ve seen firsthand how effective it is to treat direct and social referrals differently. Here’s how this strategy played out for two of our clients.

For a global energy drink distributor, we streamlined their referral process to improve hiring for logistics and non-office roles. Direct referrals allowed them to bring in candidates who were a strong fit for the job, while social referrals expanded the applicant pool, attracting a wider range of candidates. This dual approach increased conversion rates and helped them hire people who were not only skilled but also aligned with the company culture.

A tech-enabled talent-sourcing platform applied the same strategy. They used direct referrals to fill specialized tech roles and social referrals to generate interest for entry-level positions. This approach boosted engagement without overwhelming the team with unqualified candidates.

By differentiating between direct and social referrals, both companies saw improved results across the board, from better candidate fit to faster time-to-hire.

Building a Dual-Track Referral Strategy

To truly optimize your hiring process, you need a dual-track referral strategy. Direct referrals are your go-to for specialized, high-quality candidates who have the right skills and fit. These are the people who will hit the ground running, and they’re the ones who come through personal, trusted recommendations.

Social referrals, on the other hand, are perfect for generating volume and increasing awareness, getting your job openings in front of a wider audience.

The real trick is recognizing the strengths of both types of referrals and knowing how to use them in tandem. Get this right, and you’ll hire better candidates faster, all while making your referral program work harder for you.

Want to see how Boon handles these different types of referrals? Request a demo and see it in action.

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