In this clip from the webinar How to Get Automated Referrals with Bullhorn & Staffing Referrals, David Folwell, President of Staffing Referrals, discusses why automated referral management is the future of sourcing for the staffing industry.
So, as you all know, we live in the most digitally connected time and to prove this point: every minute 572 new websites are created, 188 million emails are sent, and 12 new businesses are launched.
I’m always blown away by that last one, that idea of having 12 potential new competitors coming online every minute is a little scary.
And this has really changed how business is done and what’s going on.
Research shows that since 2000, 52 percent of companies in the Fortune 500 have either gone bankrupt, been acquired, or ceased to exist as a result of the digital disruption.
And the digital disruption or digital transformation is really impacting every industry and staffing is no different.
The one thing that we do know though, as as the digital transformation happens in different industries, leaders are using new tools to grow faster and one common thread that we’ve identified is a lot of the fastest-growing business firms, a lot of the fastest-growing businesses are using digital referral programs.
For example, Airbnb increased their daily bookings by 300% with a referral program. Dropbox increased sign ups by 60% when they implemented a digital referral program. Tesla has grown without a marketing budget by relying on their customers and referral program to spread the word.
And what you can see is that modern businesses understand the power of recommendations from friends and family, which is super important and something that, when you think about, how is just impacting the staffing industry?
Well, as we shift from analog to digital in the staffing industry, we’ve really gone from in-person interviews to now what I would suggest, most firms, most agencies, if you want to compete, you’re looking at using a multi-channel sourcing strategy.
And when we look at the multiple sources and the new sourcing strategy, a lot of agencies are looking at referrals, they’re using social media more often, automation or programmatic advertising, but what we believe here at staffing referrals is that referrals are the # 1 source. And staffing agencies actually rated it as the #1 source last year.
And the reason for this is they’re 55% faster to hire. You can increase your retention by 70%, and you can save up to $3,000 per hire versus a traditional job board.
So, today what are we talking about how sourcing referrals digitally, how this has changed, and with the digital transformation — really, this is what we consider going from analog referrals, which is the outdated way of doing referrals, to using automated referral management, which I believe in the next one to three years, 70 to 90% of staffing agencies will be using some form of automated referral management.
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