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

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

By CALLUM BORCHERS, LINDSAY ELLIS
Fri, May 31, 2024 9:02amGrey Clock 6 min

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.



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How the Middle East Became the Latest ‘Gold Rush’ in Marketing

The Middle East is set to be the fastest-growing marketing region in the world, driven by momentum in countries such as Saudi Arabia

By MEGAN GRAHAM
Tue, Jun 18, 2024 5 min

Saudi Arabia’s fledgling advertising industry and continued growth in the sector in the United Arab Emirates are helping to make the marketing business in the Middle East the fastest-growing in the world.

Ad spending in the Middle East is projected to increase 8.1% to $6.6 billion this year, up from 3.5% last year, according to advertising research firm WARC.

That expansion is building from a much smaller base than in many other ad markets. The Netherlands alone will generate $6 billion in ad spending in 2024, up about 2.3%, WARC said. But it is also enough to outpace every other region in 2024, the firm said.

“It reminds me almost of the gold rush,” said Reda Raad , chief executive of TBWA\Raad Group, an ad agency based in Dubai, in the United Arab Emirates, that is part of the U.S.-based ad holding company Omnicom Group . “I don’t think we’re going to see this type of growth again in our lifetime.” TBWA\Raad has won eight new clients over the past year, with an increase in head count of 17% to accommodate the new work, Raad said.

Some international brands have long maintained a presence in the region. PepsiCo has considered the area a strategic market for decades, said Karim Elfiqi , senior vice president and chief marketing officer at PepsiCo Africa, Middle East and South Asia. Sponsorship deals with local stars such as Mohamed Salah , a soccer player from Egypt, “are a testimony of how over time, we have been part of the cultural fabric of the region,” Elfiqi said.

Other major brands have formed a more recent focus on the Middle East. The Lego Group opened a Middle East and Africa headquarters in Dubai in 2019, citing the size of the region’s young population. That office has developed work such as a Ramadan-themed campaign that ran in the U.A.E. and Saudi Arabia, among other locations.

‘Massive growth’

The Middle East’s ad market has lagged behind regions such as North America and Europe partly because of stricter cultural norms and regulations that affected business, as did a more limited media landscape and economic instability, according to Raad.

But marketing growth in the region is now being driven in part by newfound marketing interest in Saudi Arabia, where ad spending this year is expected to reach $2.1 billion, nearly double its level in 2019, according to WARC. Growth is also coming from the U.A.E., whose ad market is expected to reach $1.7 billion in 2024. Smaller contributors include Qatar and Kuwait.

The landscape has changed now because of economic diversification, increased connectivity and a move into the digital world, leading international brands to enter and invest in campaigns tailored to the region, Raad said.

Four years ago, Saudi Arabia made up a small proportion of business at Lightblue, a creative experience and tech agency based in Dubai. These days, 40% of its business comes from the country, says co-founder David Balfour , who opened an office in Riyadh last month as a result.

“The conversation used to be, ‘We’re going to do this in Dubai.’ Now, it’s ‘We’re going to do this in Dubai—and in Saudi.’” Balfour said. “We’re seeing massive growth in that region.”

There have been speed bumps. As government spending reaches huge levels , Saudi Arabia experienced a rare economic contraction in 2023.

But the country’s efforts to expand its economic pursuits beyond oil have led to the creation of new brands, which are seeking the help of marketing agencies to get the word out.

Marketers in the region are seeking help to stay on-trend in areas such as generative artificial intelligence and social media, said Greg Paull , principal of R3, a consulting firm that helps match advertisers with agencies.

“U.A.E. has been a magnet for the region for 20 years as more investment has come in—but with the new leadership in Saudi since 2017 [when Mohammed bin Salman was named crown prince ], this market has gone through remarkable growth,” Paull said.

Saudi Arabia has faced criticism for its human-rights record under the crown prince, the day-to-day ruler of the kingdom, especially over the 2018 killing of dissident journalist Jamal Khashoggi and the more recent jailing of women’s rights activists.

Mohammed has outlasted the international isolation that followed Khashoggi’s killing, however, and continues to pursue an economic diversification plan dubbed Vision 2030. The country last year unveiled plans for a new international airline called Riyadh Air, is investing billions of dollars to build its tourism and videogame industries, and in March hosted a golf tournament in Jeddah under the auspices of LIV Golf, the Saudi-backed league that has both challenged the PGA Tour and struck a deal to unify with it.

Changing tides

Vision 2030 also calls women’s empowerment a top social priority and seeks to increase the country’s employment rate of women.

Nada Hakeem , CEO and co-founder of Saudi creative agency Wetheloft, said the perceptions of hardships for women in the marketing and advertising industry are outdated and inaccurate.

“As a Saudi woman who founded my company in 2012, I’ve always felt supported by the creative community and the industry as a whole,” Hakeem said. “While every society may have its challenges, I can confidently say that these challenges have not hindered our growth.”

A progression of new laws, policies and incentives are making the industry in Saudi Arabia more inclusive and supportive for women, she added.

In certain parts of the Middle East, “absolutely, it’s still challenging, but they are making the right strides, and they have the right quotas and ambitions in place,” said Rebecca Bezzina , CEO for the EMEA region at R/GA, an agency owned by Interpublic Group of Cos.

“They’ve got wealth, they’ve got world-class ambition, world-class budget. They’re not shy of doing things in the right way,” Bezzina added, speaking of the region overall. “But they still have a talent shortage, especially from a creative and design and product point of view. So often what we’ve found our success has been that they’ve come to us and said, ‘Oh, we want a world-class agency to help us launch this new venture or do this new brand.’”

R/GA said it sees 69% more requests for agency work from marketers in the region today than it did five years ago. It recently handled a brand redesign for Banque Saudi Fransi, which wanted to reaffirm its Saudi roots with a modern identity, and created Weyay, the brand for a new digital bank from the National Bank of Kuwait.

The agency hasn’t notably increased its regional workforce, but it has made changes to facilitate working across Europe and the Middle East.

Other Western players are making moves to capture a piece of the growth. Advertising giant WPP has long worked in Saudi Arabia through units such as Ogilvy and GroupM, but in 2021 established a joint venture with a local company to create ICG Saudi Arabia, a communications and media company based in Saudi Arabia. Ad holding company Stagwell opened new offices for its media agency Assembly in Riyadh in 2021 and in Cairo in 2022.

Regional hospitality

Some executives said certain facets of business dealings in the Middle East are different than in other parts of the world.

Bertrand Morin, a group account director for R/GA who is based in London and works often with Middle Eastern clients, said he spends much more time speaking about personal lives and families with those clients than those in the U.K. or U.S. He has been invited to Middle Eastern clients’ homes to join their families for dinner, something that has never happened with clients elsewhere.

But others say it can feel surprisingly familiar.

Balfour, the Lightblue co-founder, said he was struck by the number of ad-agency workers recently having dinner at the Riyadh location of steakhouse chain Beefbar, and the scene’s similarity to far-off locations.

“The staff are from everywhere in the world. The service and the food is unbelievable. There’s a DJ playing,” Balfour said. “Apart from not having alcohol, you could be anywhere in the world.”

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