Why Your Next Job Might Depend on Who You Know, Not What You Know

Networking is Making a Comeback as Employers Drown in Computer-Generated Job Applications

Networking is making a resurgence in the job market as employers struggle to sift through overwhelming volumes of online applications.

Tech recruiter Rob Tansey experienced this firsthand when he recently posted a job opening for aviation software maker Veryon, which attracted 983 online applicants.

Yet, the candidate who secured the position wasn’t among them. Instead, Tansey, who often relies on personal referrals, received recommendations from a former acquaintance, and one of these referrals quickly became the leading candidate.

Tansey estimates that only 40% of successful applicants come through the company’s job portal, indicating a significant reliance on networking.

The renewed emphasis on who-you-know networking stems from frustrations with the digital job application process.

The ease of submitting applications online has led to a deluge of candidates, making it nearly impossible for hiring managers to review all submissions.

Consequently, many qualified applicants find themselves overlooked by automated screening tools.

This shift back to personal connections is seen as a way to bypass the digital bottleneck and ensure that résumés reach real people.

However, this return to referrals challenges corporate diversity efforts, which aim to reduce human biases through online applications.

Companies like Dassault Systèmes are increasing referral bonuses to encourage employees to recommend candidates, while others, such as the University of Miami, have introduced new referral programs.

Data from hiring software company Greenhouse highlights the benefits of referrals: referred candidates have a 50% chance of advancing past initial résumé reviews, compared to just 12% for other applicants.

This significant advantage underscores the importance of personal connections in today’s job market.

AI Arms Race Leads to Frustration

The reliance on networking has grown as applicants and hiring managers need help with the complexities of modern recruiting software.

The use of automated tools, like ChatGPT and résumé bots, allows job seekers to submit large volumes of applications quickly, but this inundates companies with numerous, often indistinguishable applications.

Human resources professionals note that many cover letters sound eerily similar, contributing to the challenge of identifying genuine candidates.

Candidates express frustration with the impersonal nature of the digital application process. Amanda Palasciano’s experience illustrates this: she scored an interview for a senior copy-manager position, only to find herself interacting with an avatar instead of a human interviewer.

The awkward and unsatisfactory experience led her to seek job opportunities through personal connections rather than online applications.

This shift away from digital platforms highlights the growing preference for more personalized, human-based approaches to job hunting.

Employers are also adapting their strategies to avoid the pitfalls of digital hiring. Lindsay Broveleit, a vice president at marketing agency Matato, chose to refrain from posting a mid-level role online to prevent a flood of low-quality applications.

Instead, she considered tapping her and her colleagues’ networks but ultimately turned to a staffing agency.

Using personal and professional networks to vet candidates is becoming more common as companies seek to balance quality over quantity in their hiring processes.

A Flawed but Indispensable System

Despite its challenges, the networking-based approach remains crucial for many companies.

For instance, Laserfiche, a content-management software maker, guarantees outreach to all candidates recommended by employees, providing opportunities for those with unconventional backgrounds to make their case.

Referral programs help in hiring and enhance employee engagement and retention, as seen at the University of Miami, where referrals account for a significant portion of new hires.

However, reliance on referrals can inadvertently perpetuate demographic imbalances, as people tend to recommend those similar to themselves.

This trend can undermine diversity initiatives, as highlighted by a PayScale survey showing that white men benefit more from referrals than other groups.

To counteract this, companies like Cisco Systems are concerted efforts to hire people from underrepresented backgrounds and those without traditional qualifications.

While personal connections can give candidates a significant edge, the system must be more foolproof.

Platforms like Fishbowl have forums where users seek job referrals from strangers, potentially leading to disingenuous endorsements.

Such practices could undermine the trustworthiness of the referral system, leaving companies with yet another hiring strategy fraught with complications.

As networking plays a pivotal role in job hunting, candidates and employers must navigate its benefits and drawbacks to find the right balance.

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