TIN #138 - Why Referrals Beat Online Applications for Jobs
This Book Will Change Your Job Search Forever
When it comes to job hunting, one question often arises:
Is an employee referral really the best way to secure a position?
In my experience, referrals don’t just help—they might be your ticket to bypassing the competitive chaos of online applications.
Let’s look at why networking and referrals can transform your job search, the strategies behind them, and how you can get started today.
This issue takes about 5 minutes to read…
Before We Get Started:
My online course, “5 Steps To Grow Your Professional Network,” is FREE for all my newsletter subscribers. Learn the process I use everyday to grow my professional network.
Each week, I post a new podcast with tips you’ll find in the weekly newsletter and bonus stories, wisdom, and motivation. The Introverted Networker podcast is like the weekly newsletter but with additional narration and thoughts from me. Be sure to listen to this week’s podcast and check out the previous episodes of the podcast on Spotify and Apple Podcasts for more networking tips and insights.
The video version of the podcast is available on my YouTube channel.
Why Employee Referrals Make a Difference
I haven’t applied for a job online since 2013.
My last four positions came from employee referrals.
I’m not the only one who’s had this experience.
The numbers back me up: referrals often lead to better hiring odds, as they help candidates stand out in a sea of online applications.
While most hires eventually complete an online application, the power of referrals lies in getting your foot in the door for an interview.
But referrals aren’t a magic wand.
A referral gets you into the interview stage, but from there, you have to perform and prove you’re the right fit.
Networking builds connections that pave your way to opportunities, but it’s your skills and preparation that seal the deal.
Networking First: A Winning Strategy
Should you apply online or focus on networking?
I advocate for starting with networking.
Here’s why:
Networking helps you identify roles that truly fit, saving you time compared to applying for countless online positions.
Building genuine relationships allows you to gather insights about the company, its culture, and its needs.
Referrals from these connections dramatically improve your odds of landing an interview.
Dedicate the majority of your job search time to networking.
If you only have 90 minutes a day, spend two-thirds of it networking and the rest applying online.
The LAMP List: A Step-by-Step Guide
If you haven’t already read it, you need to get Steve Dalton’s book, The 2-Hour Job Search. Dalton introduces the LAMP list, an acronym to streamline your networking efforts.
Here’s how it works:
List: Identify companies you’re interested in working for (a target company list).
Alumni: Research alumni from your school who work at those companies.
Motivation: Gauge your enthusiasm for working at each company based on your research and conversations.
Posting: Find relevant job openings and leverage your new connections to get referred!
This structured approach combines targeted networking with the practicality of finding open positions.
It’s not just about reaching out randomly; it’s about building meaningful connections that align with your career goals.
What the Research Says About Referrals
In a recent LinkedIn conversation in the comments of one of his posts, Steve shared a link to research about referrals from the Federal Reserve Bank of New York, which analyzed one company’s hiring practices.
The findings were compelling:
Although only 6% of applications came through referrals, referrals accounted for 21% of interviews.
Referrals resulted in 27% of job offers—higher than offers from online applications.
Almost one-third of hires in the study came from referrals, proving their effectiveness.
Additionally, referrals tend to lead to longer job retention.
Employees hired through referrals are more likely to stay with the company, making referrals a win-win for both candidates and employers.
Avoid Common Referral Mistakes
Referrals are powerful, but only if done correctly.
One common mistake is reaching out with the sole intent of asking for a job.
People don’t like to be put in that position.
Cold emails that say, “Can you get me a job?” often go unanswered.
Instead, focus on building genuine relationships.
Listen to what people are working on, offer ideas or advice, and show genuine interest in their work.
This approach not only creates goodwill but also makes them more likely to advocate for you when the time comes.
Networking: Your Job Search Superpower
Networking is never a disadvantage—unless you approach it the wrong way.
For most job seekers, it’s an underused tool with incredible potential.
By focusing on referrals and building authentic connections, you can increase your chances of finding the right opportunity faster.
Networking is never going to hurt you in a job search.
Focus on doing more of it, and you’ll see the results.
Ready to Start Networking?
If you’re job searching, make referrals your priority this week.
Begin with the LAMP list, reach out to alumni or past co-workers who might work at places on your Target Company List, and have meaningful conversations.
Remember, it’s about connecting, not just collecting contacts.
What’s your experience with networking and referrals?
Have they worked for you in the past, or are you exploring this strategy for the first time?
Share your thoughts in the comments below, and let’s keep the conversation going.