Interesting point - referral schemes are almost always cheaper than using professional recruiters, but they're particularly well-tailored to picking up candidates who are hard to find by resume alone. They'll miss a lot of clusters who never get that first Googler in the door, but past that point they're a highly efficient fix.
> they're particularly well-tailored to picking up candidates who are hard to find by resume alone
Interesting -- can you explain more what you mean here? Referral programs are often criticized for reinforcing biases, since people refer other people with similar backgrounds to them (and, likely, similar resumes). I've held a negative view of referral programs for that reason; do you have data or anecdata about referral programs finding candidates who would otherwise have been missed?
Yes, certainly - I think the thing I mean doesn't conflict with the thing you mean.
Referral programs will pretty obviously bring your hires similar to the hires you already have, with all the attendant problems. College insularity, but also demographics and even specializations. What I was thinking about was more specifically finding strong candidates from populations that don't look great.
Maybe State University has a weak CS program, but a handful of really good candidates. (This is probably the case for any weak program of sufficient size.) Those candidates probably won't be obvious on paper unless they're hyper-motivated, because weak programs lead to limited opportunities and uninformative grades.
But if Jess from State University does Google Summer of Code and makes something awesome, maybe she gets a job. At that point, Google hands her the referral form and she can pick out her strongest classmates better than any recruiter could, even if they haven't done anything flashy. (My experience, at least, was that the top students are at a minimum aware of one another.)
So it's not going to solve a demography problem; if your direct hires are 50% Stanford, your referrals will be too. But a lot of those Stanford referrals might be people you'd reach anyway, so referrals are valuable in inverse proportion to the ease of other recruiting. The harder it is to spot which candidates are good, the more benefit you gain from asking their peers.
Don't they have a referral bonus scheme pretty much exactly for this?