As a home services provider, you might struggle with turnover and finding qualified employees. It’s hard to find disciplined, reliable people who share your excitement about exceeding customer expectations in every interaction.
There’s no denying the current labor shortage in the home services industry. Finding talented employees can take a lot of time and the market is pretty tight.
But there is one powerful way you can increase your chances of finding candidates that will be successful for your company — by leveraging your own network. This is the best way to find qualified employees quickly! Let’s discuss how you can implement referrals in your hiring process.
The Power Of Referrals
Did you know that statistically referrals are the most effective way to find new employees? It’s true!
Referrals are WAY faster to hire. It’s 55% faster to hire through referring employees from your network than from job boards and other career sites.
Referrals are less expensive. In fact, they have the highest ROI, saving companies upwards of $3000 per new hire.
82% of employers rated referrals from employees as their most effective way to find new hires.
And, if you’re sick and tired of employee turnover, referrals actually stick around better.
45% of employees that came from referrals stay for longer than 4 years on average. Only 25% of employees from job boards stay for over 2 years.
You can see where I’m going with this...referrals are your best source of new employees!
Now the question is, how do you find referrals in your network to get new talent fast?
Employee Referrals
Referrals from current employees are the quickest way to find new talent.
Think about it, people tend to hang out with other people that have similar hobbies and interests (as well as careers). Since these two things often overlap, your current employees will know those most interested or that already have the necessary skills and qualifications!
Giving cash to current employees for every referral they bring in-house is the quickest way to find new employees (money is usually a good motivator!).
You can set some stipulations for your referral program, like how long employees need to stay before you pay out a bonus.
Your referral program just depends on your business, your financial situation, and how desperate you are.
Some companies are paying out right away to keep enthusiasm for their referall program high. And the amount you offer can range wildly. A $50 gift card might do the trick, or you might need to compete on a higher level...
This HVAC company is paying a bonus of $25,000! That’s an extreme situation, but it just goes to show what you can do to incentivize your employees.
If money is tight or you’re just struggling to get your current employees engaged, there are many different ways to incentivize their referral program.
Some companies offer an upgrade in tools/equipment for the current employee who refers new hires. For the new employee, you could offer other bonuses like a premium parking space or extra PTO.
Or you could hold just one raffle at the end of the quarter or year where everyone who participated is entered in to win one prize (as opposed to a seperate bonus for every individual).
Need some creative incentive ideas? Read this 👉 How to Use Spiff Incentives to Effectively Motivate Your Employees
Just get creative and find a good balance between what you can afford to offer and what will get your employees excited.
And keep in mind how much employee referrals can save you in hiring expenses (remember those stats above?).
I mention this to drive home the importance of investing in your referral program if you need help finding employees now. It might be worth spending a little more on this hiring strategy if it can save you money and turnover in the long run.
Employee Referrals From Customers
If you’ve been in business for more than a few months, I’m sure you have a pretty long list of customer contacts. Use your customers to find new employees for you by putting your email list to good use!
Your customers want the best work possible when they hire your company, and if they’re aware of a potential employee with the skills you need, then it’s in their best interest to refer them.
Or maybe a customer has a friend or family member who needs a fresh start in a new career. People love helping their friends and family, so why not use that to your advantage?
Just like your employee referral program, you can incentivize your customers to help you hire as well; like with a discount off their next service.
Briefly describe the position and what you’re looking for in an employee, then include an “Apply Now!” link in your email.
You can also mention that you will be accepting resumes for the next three weeks; this will put a sense of urgency in their minds.
If you send a hiring email blast out to all of your customers, I’m sure you’ll get at least a few qualified candidates!
Referrals From Your Vendors And Suppliers
One of the most overlooked methods for finding new, high-quality employees is from your own network of vendors and suppliers.
These people know exactly what you need - because they provide it. They’re already familiar with your industry and the personality types that fit well in it.
And they want your business to thrive because of course, if you do well, then they do well!
Plus, they interact with the same types of people with the skills you need all day long.
Maybe they’ve heard someone come in grumbling about their current job, or complaining about a boss, or they might have mentioned that they’re looking for a new challenge.
You never know, your suppliers might know of the perfect candidate!
The key to making this strategy work? Be sure to have some sort of resource you can leave with your vendors; a hiring brochure, business card, or postcard. You’ll need something physical that they can hand to a potential employee.
And make sure this resource links to your careers page on your website where people can learn about the company and apply. It will help facilitate a easier application process.
When it comes to the labor market, you have to be seeking new talent all the time.
Hopefully one of these pools of people can help you find ongoing candidates. Referral programs could save you a lot of headache and stress!
What avenue has been the best place for you to find new talent? Tell me in the comments!
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