No. 1 way employers find new employees to hire

new employeesWhat’s the No. 1 way employers find new employees? It’s not what you might think.

Forget the online job boards. Forget employment agencies or headhunters. The No. 1 way employers find new employees is through a referral from a colleague.

At least that’s according to recruiting think tank CareerXroads’ Source of Hire 2015, an annual report that tracks how major companies hire employees and one that career coach and author Marty Nemko mentioned in a recent Psychology Today blog article.

Companies find about 20% of new employees through referrals

The organization found that referrals were the top source for hiring, with companies filling about 20% of their openings through employee referrals.

This is in contrast to the 13% of hires that came from social media and job boards.

In addition, the report stated that “a job seeker who is referred is conservatively three to four times more likely to be hired – some studies have found that a job seeker who is referred is 14 times more likely to be hired – than someone who applies for a position without a referral.”

Keep in mind that CareerXroads sends its survey out to 250 of the nation’s largest companies, so what applies to their hiring managers may not always be applicable to smaller companies. But it still will give you an idea of how many companies are finding their employees.

The survey also found a 3% increase in temp-to-hire, which follows a trend among companies to transition part-time and contingent workers into full-timers. This is also something to keep in mind, because temporary employment can provide a good foot in the door for those looking for a job.

So knowing the situation, what can you, as a job seeker, do?

The most important thing is to get on the radar of hiring managers, whether in big companies or small.

And one of the best ways to do this comes from workforce development expert Larry Robbin. He calls what is usually referred to as a network a circle of contacts and suggests looking at this circle of contacts like a target.

Here’s how it works

Take out a big piece of paper and put your name in the center. That’s the bull’s eye. Put the names of the people who you are closest to – these would be your family and best friends – in the first ring. Then put other friends and relatives outside your immediate family in the next ring. Keep filling in the outer rings with more and more people you know but may not know very well. When you run out of people, your circle of contacts will be complete.

What’s interesting about this whole circle of contacts idea is research has found that people tend to find jobs more through acquaintances than from close friends. The chances are pretty good that you’ll get your next job through someone you don’t know very well or see very often.

The reason is that the people you know well will have many of the same contacts that you do, but those you don’t know will have an entirely different set of contacts – and one of those may be the key to your next job.

What we’ve found is that people are usually happy to help others in their job search. We’ve all been there before and know what a tough road it is. So don’t be shy. Put together a circle of contacts and get in touch with as many of them as you can.

Who knows. Your next job might come from another customer of the stores you go to, who just happened to mention when they were in shopping that they were looking for someone who does the type of work you do. Or maybe the spiritual leader at your place of worship heard that a member was going out on maternity leave and needed someone to take her place for six months. Or a friend of a friend’s company is expanding and looking for more employees.

The only thing you have to do is get the word out. Although what happens from there involves a bit of luck, by reaching out you can be assured that luck is more likely to come your way.