A few months ago techtribe.com, a IT specific employment referral site closed down because their model was not working. Earlier this week, we heard from WATBlog.com that yellojobs.com may be shutting down.
Yesterday, I was talking to the head of HR of a large multinational and he tells me over 40% of their new employees are recruited through internal referrals. Last month, I talked to a HR manager of one of the top 3 IT companies in India and I believe over 35% of their new employees come through various referral schemes!
We all know that new employees that come through referral schemes fit in, work well, and stay longer with the organization.
So if referrals are a HR's best friend, why are referral based job sites faring so badly?
Watch this space...