Tapping into the referral economy

A year ago, we wrote about YorZ, a community designed to help people refer candidates for jobs and make money in the process. The American company has now been joined by a British start-up that aims to do the same thing. Zubka, which launched recently, is hoping to shake up the British and European recruiting markets by creating a platform for hirers to tap into the social networks of active referrers. Research conducted on behalf of Zubka estimates the value of the employee referral market in the UK at GBP 7.6 billion, based on the number of successful referrals per year. The company’s founders aim to help out everyone involved in recruiting: referrers get a financial bonus, job hunters gain new leads for interesting jobs, and employers are able to recruit members of staff in less time and with fewer costs than through traditional channels. All by sharing information and contacts. A referrer’s reward depends on the starting salary of the person referred, but is normally between 6 and 8 per cent, according to Zubka. Successfully placing someone in a job with a basic salary of GBP 60,000 would therefore reap the referrer a tidy sum of around GBP 4,000. Joining Zubka is free for both referrers and hirers. Organisations with vacancies to fill can advertise jobs for referrers to browse through for as little as GBP 10 for a four week posting. Recruiters are always looking for new channels that will help them find the right person for a job, so rewarding people for rooting through their valuable networks makes complete sense. More local versions to follow?