Learn how to create a diverse and inclusive referral culture with ERPs. Follow these tips to avoid referral bias in hiring.

Diversity goals cannot be achieved through the referral program alone. First, your company should decide which EDI goals to set. Then, these goals should be integrated into all internal and external tools. The referral program is just one of those tools, not a "magic pill" for everything. The diversity value should be pursued with a holistic strategic approach.

To ensure your colleagues have a diverse network, it can be beneficial to support them in building it. Help your employees grow their connections and build personal brands so that their network naturally expands and includes people from different backgrounds.

Last updated on Aug 8, 2024

How do you create a referral culture that values and respects different backgrounds and perspectives?

Employee referral programs (ERPs) are a popular and effective way to attract and retain talent. They can help you save time and money, increase employee engagement, and leverage your existing network. However, ERPs also come with some potential pitfalls, especially when it comes to diversity and inclusion. If you're not careful, you might end up with a homogeneous workforce that suffers from referral bias, which is the tendency to favor candidates who are similar to or connected with the current employees. How do you create a referral culture that values and respects different backgrounds and perspectives? Here are some tips to help you avoid referral bias in hiring.

1 Define your diversity goals

Before you launch or revamp your ERP, you need to have a clear vision of what diversity means for your organization and why it matters. Diversity can be defined in many ways, such as race, gender, ethnicity, age, disability, sexual orientation, religion, education, or experience. You also need to understand the benefits of having a diverse workforce, such as improved innovation, creativity, problem-solving, customer satisfaction, and performance. Once you have your diversity goals, you can communicate them to your employees and align them with your referral program.

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Olga Fenko

✅ Certified Talent Marketing & Employer Branding Professional | ERG Leader | Connecting great companies with great talent through the power of marketing.
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Diversity goals cannot be achieved through the referral program alone. First, your company should decide which EDI goals to set. Then, these goals should be integrated into all internal and external tools. The referral program is just one of those tools, not a "magic pill" for everything. The diversity value should be pursued with a holistic strategic approach.

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Bill Malcolm

Baseball Dad | Veteran | Talent Acquisition & Project Management Leader | Data Analytics | High-Tech, High-Touch Hiring | HR Technology | Strategy
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Communicate commitment to diversity as a core value. Provide unconscious bias training (which is easy in LinkedIn Learning). Expand sourcing channels beyond employee networks. Run targeted referral campaigns for underrepresented groups. Incentivize referring diverse candidates. Spotlight "diversity star" employees. Analyze data to identify demographic gaps. Create employee resource groups fostering community. Engage leaders to model inclusive behaviors and mentorship. Celebrate diversity success stories and milestones. Embedding D&I into referral program foundations cultivates an environment respectful of all backgrounds. I used an employee referral technology ERIN (erinapp.com) which was a game-changer for our company.

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2 Train your employees on referral best practices

Your employees are your ambassadors and recruiters, so you need to equip them with the skills and knowledge to make effective referrals. This means providing them with training on how to identify and reach out to diverse candidates, how to avoid unconscious bias and stereotypes, how to write inclusive and accurate referrals, and how to follow up with the candidates and the hiring team. You can also create a referral guide or toolkit that outlines the referral process, the diversity goals, the dos and don'ts, and the incentives and rewards.

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Olga Fenko

✅ Certified Talent Marketing & Employer Branding Professional | ERG Leader | Connecting great companies with great talent through the power of marketing.
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To ensure your colleagues have a diverse network, it can be beneficial to support them in building it. Help your employees grow their connections and build personal brands so that their network naturally expands and includes people from different backgrounds.

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3 Diversify your referral sources and channels

If you rely on the same referral sources and channels, you might end up with a limited and biased pool of candidates. To avoid this, you need to diversify your referral sources and channels, and encourage your employees to do the same. For example, you can ask your employees to tap into their professional associations, alumni networks, online communities, social media groups, or personal contacts. You can also use external platforms or tools that can help you connect with diverse talent, such as job boards, career fairs, events, podcasts, or blogs.

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4 Review your referral criteria and process

Another way to avoid referral bias in hiring is to review your referral criteria and process, and make sure they are fair and consistent. For instance, you can use standardized and objective criteria to evaluate the referrals, such as skills, qualifications, achievements, or fit. You can also use structured interviews, assessments, or simulations to measure the candidates' abilities and potential. Moreover, you can involve multiple people in the hiring decision, and seek feedback from different perspectives and backgrounds.

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5 Monitor and measure your referral outcomes

Finally, you need to monitor and measure your referral outcomes, and see how they align with your diversity goals. You can use data and metrics to track and analyze the referral sources, the referral quality, the referral conversion, the referral retention, and the referral diversity. You can also use surveys or interviews to collect feedback from your employees, your candidates, and your customers on the referral program. Based on the results, you can identify the strengths and weaknesses of your ERP, and make adjustments or improvements as needed.

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How do you create a referral culture that values and respects different backgrounds and perspectives?

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1 Define your diversity goals

2 Train your employees on referral best practices

3 Diversify your referral sources and channels

4 Review your referral criteria and process

5 Monitor and measure your referral outcomes

Employee Referral Programs

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