Crowdsourcing vs. Traditional Hiring Methods

Crowdsourcing vs. Traditional Hiring Methods

Crowdsourcing has become a popular way for small businesses to test new ideas and gain feedback on logos, products and more by reaching out to the masses for input. Some companies are taking it a step further by having recruiters and human resources departments use crowdsourcing tactics as an efficient way to gain employee referrals.

Here's how it works: You reach out to your social media followers, customers, employees, family members, friends, other local businesses, college campuses, and industry and business contacts, and ask those people to submit suggestions for job candidates.

The benefit for you is that you expand your access to fantastic candidates who might not otherwise see your job ad. Because referrals and applications are coming to you from many people, you don't have to do so much recruiting. Crowdsourcing does require some work, and it's not ideal for every small business. Before you implement a crowdsourcing recruiting program, ask yourself these questions:

Is my small business "attractive" enough?

Just because you plan carefully and create a crowdsourcing recruiting strategy doesn't mean the customers will jump to offer referrals. You have to ensure that your company is one that your customers will deem worthy of their contacts' talents. Take a look at your workplace culture, your benefits and the extra perks (e.g., telecommuting or flexible scheduling) that you can offer new talent. What makes you an employer of choice? Then, prepare to sell that big-time to your followers.

Also, remember to check sites like Glassdoor.com and Indeed.com to see how former and current employees rate their experience working at your company. For any recruiting effort -- especially an online effort -- it is important to make sure that you don't have a negative online reputation.

What position do I need to fill?

Are you looking to hire a full-time or part-time in-house employee, or do you simply need a freelancer to perform specific tasks on an as-needed basis? For example, you may not need -- or have the budget -- to hire a full-time graphic designer for your small business if you only require occasional work on projects like redesigning a logo or brochure. In that case, consider using a crowdsourcing site like Elance or Odesk, which enables you to post a job and then allow professional contract workers to bid it on it.

If you reach out to your network to search for a full-time or part-time employee, be detailed about how many hours you expect the person to work and the requirements of the job. That information is key to drawing referrals for people who you can actually hire.

How many people do I want to hire?

If you want to hire just one or two people, crowdsourcing may be too overwhelming because you could receive a high volume of referrals and applications that you have to sort through. However, if you are looking to grow rapidly and need to hire many employees, crowdsourcing is a productive and efficient way to reach many potential candidates in a short period of time.

What incentives can I offer?

People typically want something in return for their efforts. Reward people who work in collaboration with you by referring qualified candidates to your small business with something small but of value, such as a free download or discount. If you hire a referred candidate, offer the referrer a cash bonus or something else that is more substantial. If you run a solid referral program and pay referrers quickly, they will tell others about it and you will increase your outreach.

Do I have the resources?

At the very least, you need an expansive network. The wider the net you can cast, the better your chances are of recruiting some great candidates. In addition, you should create a landing page on your small business website that details open positions, promotes your incentives and offers people an easy way to refer candidates or apply directly to a position. It's also important to think about how you will handle a potential influx of referrals, applications, interviews and so on. If you have a human resources department -- or even if you can assign a couple of employees to do the work -- the process can be much more manageable than if you are doing it by yourself.

How strong is my social media presence?

The larger your social media following, the better your chances are of receiving more referrals and applications. Not to say that you can't crowdsource if you have a small social media footprint; just be aware that the referrals may not come flooding in.

Recruiting talent through crowdsourcing can allow you to build an ongoing pool of talent that you can use to fill vacant positions or rapidly grow your small business and increase productivity. If you have a positive online reputation, a broad network and strong social media presence — and the manpower and resources to manage a potential onslaught of referrals — crowdsourcing can be an efficient and smart way to recruit top talent for your business.

Jaimy Ford is a professional business writer with nearly a decade's worth of experience developing newsletters, blogs, e-letters, training tools and webinars for business professionals. She contributes to both The Intuit Small Business Blog and Docstoc.com. She also serves as editor-in-chief of Sales Mastery, a digital magazine written specifically for sales professionals.

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