#Japan #Tokyo #Will Group #Referral Hiring #Refcome

The Rising Trend of Referral Hiring

Referral hiring is gaining momentum in today's competitive job market, especially as companies seek effective strategies to improve hiring outcomes. A recent survey conducted by Will Group’s cloud service, Refcome, focuses on the experiences and perspectives of HR professionals and hiring teams regarding referral hiring practices. This article presents key insights from the survey and examines the future potential of referral hiring based on the findings.

Survey Overview

The survey took place over two days, from November 17 to November 18, 2025, targeting HR and recruitment personnel across various companies. The survey garnered responses from a total of 78 HR professionals, thus providing a solid foundation for analysis.

Key Findings

Majority Utilization in Mid-Career Recruitment

A significant observation is that approximately 80% of the surveyed companies are utilizing referral hiring primarily for mid-career recruitment, with 79.5% citing this demographic as the most common usage. The main driving factors behind this choice include:

• - Reducing recruitment costs (33.3%)
• - Ensuring candidate quality (33.3%)

The trend indicates that referral hiring is particularly valued for its ability to deliver candidates who are ready to add value to the organization right away.

High Retention and Low Rejection Rates

The survey also revealed interesting statistics about retention and rejection rates. Roughly 27% of companies reported a retention rate exceeding 90% after one year using referral hiring, in stark contrast to other methods:

• - Job boards: 11.5%
• - Recruitment agencies: 12.8%
• - Direct recruiting: 11.5%

This suggests that companies employing referral methods experience higher commitment from their hires. Additionally, candidates' motivations seemed notably heightened:

• - Candidates withdrawing during the selection process had a rejection rate of 41% for referral hiring, compared to lower rates for alternative methods, reinforcing stronger candidate interest and engagement.

Future of Referral Hiring

Looking ahead, nearly 50% of companies expressed the desire to increase their use of referral hiring, with a blend of strategies:

• - 10.3% indicated they'd like to significantly boost referrals
• - 37.2% prefer slight increases

Despite these encouraging sentiments, it is worth noting that only one-third of organizations have dedicated personnel for referral hiring. While companies recognize the strategy's value, forming specialized teams remains a challenge.

The survey further revealed that 64.1% of companies incorporate referral hiring achievements into their performance evaluations, showcasing the importance placed on this hiring method across organizations.

Challenges Ahead

Despite the evident strengths of referral hiring, many organizations still face challenges in fully implementing dedicated systems for managing this process. It highlights a need for further investment in training and toolkits, with firms expressing growing interest in Refcome, a platform designed to enhance and simplify referral hiring processes.

Refcome: The Preferred Solution

Refcome serves as a specialized tool tailored for referral hiring, providing comprehensive support that spans system design, operation assistance, and promoting the strategy among employees. The service not only helps alleviate staffing shortages but also customizes the referral process to fit various company structures and needs.

Key Benefits of Using Refcome

1. Extensive Experience: Refcome has supported over 850 companies, offering solutions to a diverse range of businesses from large corporations to startups.
2. Dedicated Professional Support: The platform ensures dedicated resources engaging throughout the hiring process, from onboarding to internal awareness campaigns, ensuring successful integration of new hires.
3. Flexible Pricing Models: The service accommodates various budgetary needs through both fixed and performance-based pricing options, allowing firms to adjust their engagement according to specific demands.

Conclusion

The results of this survey reaffirm the significant benefits of referral hiring, particularly in employee retention and reduced rejection rates. While many companies express interest in amplifying their referral hiring efforts, a lack of dedicated resources can hinder progress. As the demand for effective talent acquisition solutions continues to rise, platforms like Refcome are likely to attract increasing attention and interest, paving the way for a new era in recruitment practices.