It remains a fact of life that “who you know” often matters more than “what you know” when you’re looking to make a career move, though in finance, the emphasis on credentials and technical skills remains high. A widespread professional network remains one of the most important factors in getting a job interview, with referrals from within the company factoring high in hiring managers’ priorities.
Human resource research group Glassdoor studied this conventional bit of hiring wisdom by investigating how and why candidates got interviews and the different factors affecting how candidates got the job.
The labor market research group concluded that personal connections and references within the company remain leading reasons for landing a job interview and being given an offer, as hiring managers prefer tapping into personal and professional networks to access the talent pool. However, there were still some questions in the report regarding how the personal connection method stacks up to other hiring methods, according to Toronto recruiters IQ Partners. Among the questions they asked were whether or not referrals led to better candidates after accounting for candidates’ different qualifications, as well as differences in employers and industries.
But how much do personal connections matter compared to other hiring channels? Do employee referrals lead to more successful job matches once other differences in job seekers, employers and industries are taken into account? Below are the numbers, collected in short form by a recruitment agency in Toronto with valuable information on the state of recruitment in 2017.
According to the study, interviews granted as a result of an employee referral were more likely to result in an offer by anywhere from 2.6 to 6.6%, while companies in IT, consultant, and finance relied on referrals more than any other industry. However, while referrals are clearly related to better chances at landing interviews and jobs, they were only reported by 10% of all candidates, meaning the majority of hires are still made through other hiring channels, especially through recruiters.
If you’re looking for a job in the finance industry, you need to make the most of your professional network by strengthening it to improve your odds of making that upward career move. Below are some tips from Toronto recruiters IQ partners for improving your network:
- Keep in touch with your former managers and coworkers from jobs in the past; as they grow and advance their careers, they can become valuable resources
- Seek out stronger connections wherever you can in the form of training and mentorships
- Wherever you cross paths with people in your industry, stay in touch, including former classmates and professors from your alma mater
- Make use of social media and social professional media like LinkedIn as a way to stay engaged in a low-pressure way
- If you haven’t been already, start attending industry events, networking events, and conferences to meet more people
Networking works, otherwise competitive candidates wouldn’t put nearly as much effort into it as they do. Ask a recruiter how you can maximize the value of your network.
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