To Refer or Not to Refer: That Is the Question

Referrals in the workplace can feel like a bit of a lucky dip. Sometimes you pull out gold, sometimes… not so much. Let’s be real, having a team member recommend someone can save you loads of time (and sometimes your sanity). But there’s also a fair chance it could create a few headaches if things don’t work out.

So, should you lean into referrals or run a mile? Let’s unpack the pros and cons.

The Perks of Referrals

• Speedy hires: When you just need a bum on a seat, whether it’s to cover a busy season or fill an urgent gap, a referral can be a lifesaver. You skip the long job ads, save money on recruitment and just get someone in quickly.

• Built-in trust: There’s already a connection. You think, “Well if [star employee’s name here] recommends them, surely they’re great too?” Sometimes, that’s bang on.

• Engaged candidates: Referred hires often show up more motivated, keen to prove themselves and not let their mate (or mum/dad) down.

The Flip Side

• Not all cut from the same cloth: Your best team member might mean well, but their friend or cousin may not share their talent, drive, or attitude. A great accountant doesn’t guarantee their nephew won’t ghost you on day three.

• Awkward rejections: Saying “no” to a referral can be tough. Suddenly you’re not just turning down a candidate, you’re disappointing your loyal employee who vouched for them.

• Referrer bias: If you decide not to hire their friend or family member and bring in someone else instead, the person who gave the referral might still keep one eye on the new hire. They’ll compare every move the newbie makes against their mate or cousin who didn’t get the job. That can put unnecessary pressure on the new hire and make settling into the role harder than it needs to be.

• Parent referrals: Just because a professional, loyal, values driven adult works for you doesn’t mean their child is cut from the same cloth. “Like parent, like child” doesn’t always apply at work.

How to Minimise the Fallout

• Set the rules upfront: Say yes to referrals, but make it crystal clear what you’re actually looking for.

• Stick to culture + fit: Technical skills matter, sure, but culture fit is where the magic happens. If they’re not the right vibe for your team, no amount of glowing references will make it work.

• Keep it professional: Frame it so your team knows that while you appreciate referrals, they’re still subject to the same process as every other candidate. No shortcuts.

Bottom Line

Referrals can be brilliant, but they’re not a free pass. Think of them as the express lane to candidates, not a guaranteed golden ticket. By setting clear expectations and keeping your culture at the heart of the decision, you’ll avoid most of the drama.

So, to refer or not to refer? The answer is: yes, but with guardrails.