Landing a Job Is All About Who You Know (Again)

Nine-hundred eighty-three people applied online for a job posted recently by tech recruiter Rob Tansey. The candidate who got the offer wasn’t one of them.

Tansey, who scouts potential hires for aviation-software maker Veryon, received a half dozen referrals from a woman he knew from past job searches. One of those six quickly became the front-runner. That’s often how Tansey operates: He estimates that just 40% of successful applicants come in cold through his company’s job portal.

“There’s an idealist in me that wants to look at all the résumés,” he says. “The reality is you just can’t.”

Who-you-know networking is back. As the number of job applicants has swelled in recent years, the key to landing a new position often turns on a personal connection that can pluck your résumé out of online obscurity and ensure it’s seen by a real person.

Behind the resurgence: frustration with the digital slog that bogs down U.S. hiring. Many hiring managers and applicants agree that the ease with which job hunters can respond to help-wanted postings has broken the online-application process by creating high volumes of candidates that hiring managers can’t hope to parse through. Meanwhile, applicants say automatic screening tools are shutting them out of opportunities.

Reverting to referrals threatens to undermine corporate diversity efforts, which were supposed to be aided by online applications. Software promised to democratise hiring by reducing human biases, but wider talent pipelines have overwhelmed some employers to the point where they’re reaching for what’s worked in the past.

To promote the use of connections, some employers, like software giant Dassault Systemes , have increased cash rewards for employees whose recommendations lead to hires. Others, including the University of Miami and its health system with 20,000 total employees, have launched new referral-bonus programs. Corporate hiring software can allow companies to identify referred candidates first, boosting those applicants over the competition.

Whether recommendations come from in-house or outside the company, the advantages are significant, according to data compiled by the hiring-software company Greenhouse. For roles that were posted on Greenhouse job boards and filled in the first quarter of this year, applicants with referrals had a 50% chance of advancing past an initial résumé review, compared with 12% odds for other external candidates.

Thirty percent of eventual hires had referrals, even though people with referrals represented just 5% of the applicant pool.

“Candidates are so desperate to get noticed, and they’re asking, ‘What’s the cheat code? What’s the way to get through the filters?’” says Jon Stross, Greenhouse’s co-founder. “Get referred. It really increases your chances of getting through the first filter.”

AI arms race leads to frustration

The renewed reliance on networking comes as applicants and hiring managers are struggling to navigate the software that now dominates recruiting.

Companies are swamped by applicants in part because many job seekers are newly relying on ChatGPT and automated bots to fire off large volumes of résumés, or using other shortcuts like LinkedIn’s “easy apply” button.

Some human-resources professionals lament that cover letters sound eerily similar, as if written by the same nonhuman.

Candidates fume when they click “submit” and don’t hear back—and sometimes even when they do. Amanda Palasciano, in Red Bank, N.J., scored an interview for a senior copy-manager position as she sought a job in advertising. The catch was that her interviewer was an avatar, not a person.

The video call was awkward. Palasciano, 42, had a short window to record her response to each question. She didn’t know where to look. Soon after, she was rejected.

“It put a bad taste in my mouth about the company,” she says. “If that’s how much reliance you put on brand-new tools over people, this isn’t the right place for me.”

She decided to stop applying online and started asking former colleagues about short-term openings , aiming to convert one to a full-time job.

“This front door is locked,” Palasciano says. “We’re going through the back door, or we’re not working.”

Fewer applicants, higher quality

Lindsay Broveleit, a Minneapolis-area vice president at the marketing agency Matato, didn’t bother posting a job listing online when she needed to fill a midlevel role this spring.

She feared that listing the position on LinkedIn or the company’s website would bring throngs of low-quality applications—and she was anxious about how truthful AI-enhanced applications might be.

“A couple of years ago, I would have absolutely pursued more digital channels that are more public-facing,” she says. Not now. “We don’t want that many applicants. We want good ones.”

She thought to tap her and her colleagues’ networks to fill the role, but she soon reconsidered—even those personal channels have become oversaturated with first- and second-degree connections looking for work.

Employees are “inundated with people asking for their help to navigate into open positions,” she says.

She contracted a staffing agency instead.

Whether using agencies or their own employees, more companies are turning to people to vet prospects.

Laserfiche, a maker of content-management software, has a longstanding employee-referral program and a renewed commitment to contact everyone who is recommended by an employee.

The guaranteed outreach does not ensure an offer, says Vice President of People Jenny Bode, but it is a chance for candidates with unconventional backgrounds to make a case for themselves. With about 400 applicants for a typical opening, that’s an opportunity not afforded to everyone.

Bode values referrals partly because one helped bring her to Laserfiche in 2022. She wasn’t even looking for a job when she heard from a former co-worker she’d kept in touch with.

“She reached out to me and said, ‘I have this position. Do you want to interview for it?’” Bode recalls.

Alison Mincey introduced referral bonuses of up to $2,500 when she became chief human resources officer at the University of Miami in 2022. She estimates one in 10 hires now starts with an employee referral. The program, she says, also helps with retention: Employees are more engaged when their input is valued, and newcomers are more likely to stay and thrive when they already know a co-worker.

A flawed but indispensable system

On Greenhouse’s platform, when employees submit referrals, the software prompts them to “consider referring people from underrepresented backgrounds.”

That can be a challenge. People tend to know—and therefore recommend—people like themselves, says Ruth Thomas, chief of research and insights at PayScale, a compensation-management firm. (PayScale itself has lately doubled its usual share of new hires found through referrals, to 30%.)

Referral networks tend to reinforce demographic imbalances . A PayScale survey of 53,000 workers found that white men land more jobs and bigger raises through referrals than others because they are more likely to be connected to corporate decision makers.

Hiring managers might say, “They were in my club at Princeton, and therefore, they’re a good person,” says John Horton, an associate professor at the Massachusetts Institute of Technology’s Sloan School of Management and co-author of a recent paper on artificial intelligence in hiring. “If people start to retreat away from an open market, and it happens much through who you know and references, that would be bad.”

Cisco Systems is leaning more heavily on referrals for hiring than it has in the past. But the network-equipment company knows the approach can run counter to diversity efforts, so it also launched an effort to hire more people of colour and workers without four-year degrees, says Macy Andrews, vice president of employer branding for people and purpose. That hiring initiative looks to identify candidates with transferable skills rather than mandating college. Cisco so far has made over 100 hires through the initiative.

The company is looking to cut through the online-application morass in other ways as well. Cisco recruiters now visit college campuses with preprinted offer letters, so they can snap up students who make strong impressions.

“There is a bigger point here, which is that the process of sending in résumés and having thousands—sometimes millions—to go through isn’t the wave of the future,” she says.

No connection, no luck

Samuel Joynson, of Venice, Fla., launched a thoroughly modern job hunt after he lost his job when his company went through a reorganisation. He enlisted ChatGPT to edit his résumé and draft emails and cover letters.

The language didn’t sound like him—so he changed his approach.

Joynson, 28 years old, switched to writing his own letters and emails, investing about two hours into each application. He also pushed himself to contact everyone he knew at major tech companies including Apple, Google and Microsoft , where he talked to a friend from college. On calls, he asked them about their experiences at the companies, the office environment and remote-work policies.

“I took the approach of making it as human-based as possible,” he says.

Joynson’s old-fashioned strategy paid off. Many conversations led to introductions to other employees within his target companies. He landed a role and started as a senior technical program manager at Microsoft in April.

Francisco Denis recently discovered that connections—or lack thereof—can make all the difference. He says he was a finalist for a project-manager role at Disney but was told by a recruiter that the company decided to hire someone who had worked there in the past and could plug in immediately.

Denis, 40, has applied online for more than 100 jobs this year after moving on from an unsuccessful startup. His efforts have yielded only a handful of interviews, a jarring turn from a couple of years ago, when he was routinely headhunted. He’s pouring energy into networking for the first time in his career, reconnecting with former co-workers at companies he’d like to join. He often shares his résumé and describes his arduous job search to show that he’s not looking for a handout.

Still, even a system that relies on human connections can be gamed. On Fishbowl, an app for workplace venting and career advice, users have started a forum dubbed “Job Referrals!” It has drawn hundreds of thousands of members seeking endorsements from people they don’t know.

“Anyone willing to provide a referral to Amazon ?” one user posted.

In lieu of a handshake or business card, another offered an emoji: “Looking for a referral for Spotify, thanks in advance :).”

Bogus referrals could be win-wins for the people who give and receive them. The applicants gain an edge and, if they’re hired, their sponsors might be entitled to referral bonuses.

The companies that extended the offer? They’re left with one more hiring strategy that can’t be trusted.

Former New Hampshire Gov. Chris Sununu delivered a warning to Treasury Secretary Scott Bessent during a recent visit to Washington: Already-high airfares will surge if the war in Iran doesn’t end soon.

Sununu, a Republican who represents some of the biggest airlines as president of the industry group Airlines for America, has for weeks sounded the alarm to Trump administration officials about the economic fallout from high jet fuel prices. The war, Sununu has argued, must come to a close soon, or things will get worse.

Administration officials have gotten the message.

Privately, President Trump’s advisers are increasingly worried that Republicans will pay a political price for the rising fuel costs, according to people familiar with the matter. Many of those advisers are eager to end the war, hoping prices will begin to moderate before November’s midterm elections.

The fallout from the U.S.-Israeli attack in late February has slowed traffic through the Strait of Hormuz, a vital shipping lane, triggering a sharp increase in oil, gasoline and jet-fuel prices.

That means consumers are grappling with high costs ahead of the summer travel season, as they consider vacation plans.

Sixty-three per cent of Americans said they put a great deal or a good amount of blame on Trump for the increase in gas prices, according to a new poll conducted by NPR, PBS and Marist.

More than 8 in 10 Americans said struggles at the gas pump are putting strain on their finances.

Jet-fuel prices roughly doubled in a matter of weeks after the war began, and they have remained high. Airlines have said that will add billions of dollars of additional expenses this year, squeezing profit margins.

U.S. airlines spent more than $5 billion on fuel in March—up 30% from a year earlier, according to government data.

Carriers have been raising ticket prices, hoping to pass the cost along to consumers, and they are culling flights that will no longer make money at higher price levels.

In March, the price of a U.S. domestic round-trip economy ticket rose 21% from a year earlier to $570, according to Airlines Reporting Corp., which tracks travel-agency sales.

So far, airlines have said the higher fares haven’t deterred bookings and they are hoping to recoup more of the fuel-cost increases as the year goes on.

Earlier this week, Trump said the current price of oil is “a very small price to pay for getting rid of a nuclear weapon from people that are really mentally deranged.”

Secretary of State Marco Rubio told reporters that if Iran got a nuclear weapon, the country would have more leverage to keep the strait closed and “make our gas prices like $9 a gallon or $8 a gallon.”

Trump has taken steps in recent days to bring the war to an end. Late Tuesday, the president paused a plan to help guide trapped commercial ships out of the Strait of Hormuz, expressing optimism that a deal could be reached with Iran to end the conflict.

Crude oil prices fell below $100 a barrel on Wednesday, after reports that Iran and the U.S. are working with mediators on a one-page framework to restart negotiations aimed at ending the conflict and opening the strait.

Sununu said Trump administration officials are conscious of the economic fallout from the war: “They get it…and I think that’s why they’re trying to get through the war as fast as they can.”

But he cautioned that it could take months for prices to return to prewar levels.

“Ticket prices won’t go down immediately” after the strait is fully reopened, Sununu said. “You’re looking at elevated ticket prices through the summer and fall because it takes a while for the prices to go down.”

Since the initial U.S.-Israeli attack in late February, Sununu has met in Washington with National Economic Council Director Kevin Hassett, representatives from the Transportation Department and senior White House officials.

A White House official confirmed that Hassett and Sununu have discussed the effect of increased fuel prices on the airline industry. The official said the conversation touched on how the industry can mitigate the impact of high jet fuel prices on consumers.

“The president and his entire energy team anticipated these short-term disruptions to the global energy markets from Operation Epic Fury and had a plan prepared to mitigate these disruptions,” White House spokeswoman Taylor Rogers said, pointing to the administration’s decision to waive a century-old shipping law in a bid to lower the cost of moving oil.

Rogers said the administration is working with industry representatives to “address their concerns, explore potential actions, and inform the president’s policy decisions.”

A Treasury Department spokesman pointed to Bessent’s recent comments on Fox News that the U.S. economy remains strong despite price increases. The spokesman said Treasury officials have met with airline executives, who have reaffirmed strong ticket bookings.

“We’re cognizant that this short-term move up in prices is affecting the American people, but I am also confident, on the other side of this, prices will come down very quickly,” Bessent told Fox News on Monday.

The war has already contributed to one casualty in the industry: Spirit Airlines. Company representatives have said they were forced to close the airline because the sustained surge in jet-fuel prices derailed the company’s plan to emerge from chapter 11 bankruptcy.

The Trump administration and Spirit failed to come to an agreement for the company to receive a financial lifeline of as much as $500 million from the federal government.

Transportation Secretary Sean Duffy has argued that the Iran war wasn’t the cause of Spirit’s demise, pointing to the company’s past financial struggles, as well as the Biden administration’s decision to challenge a merger with JetBlue.

Other budget airlines have also turned to the federal government for help since the U.S.-Israeli attack. A group of budget airlines last month sought $2.5 billion in financial assistance to offset higher fuel costs, and they separately wrote to lawmakers asking for relief from certain ticket taxes.

Landing a Job Is All About Who You Know (Again)

Networking is making a comeback as employers drown in computer-generated job applications

AI arms race leads to frustration

Fewer applicants, higher quality

A flawed but indispensable system

No connection, no luck

Administration officials have spoken to the airline industry, which has voiced concerns about the rising costs.