Things You Should Know Before Making a Referral 

Many companies have referral programs that allow their employees to get paid to participate in recruiting efforts by referring their network contacts. Depending on your network, this might be a long shot or an excellent opportunity to make some extra money. Regardless of how likely it is that you might make a referral soon, there's a few things that you should know.

You May Not Work with Them

Unless the open position is for a role directly within your team, it's very possible that the person you refer gets put on a different team. This shouldn't be a shock to most experienced professionals, but lots of people create the expectation that they will get to work with their friends if they make the referral. This is not always the case. Especially in public accounting firms, new hires will go where they are needed most. Some firms will even deliberately separate referrals from their referees to help maintain a professional environment. 

People are different in the workplace 

In my decade of professional experience working with coworkers, companies, and university students, I have learned that no one is exactly the same inside and outside of the workplace. I have known students that get the best grades that have terrible workplace skills, as well as students who got decent grades and really excelled in the professional work environment. By the same token, your friends might be great to hang out with on the weekends but might also be terrible to work with. These things are all true because different skills are incentivized and rewarded in different environments, and some people will just respond differently at work. 

Be Careful Who You Refer

Whether you like it or not, the person you refer will be associated with you if they are hired. If you have good referrals, this isn't an issue. However, if something goes south with the referral, they may question your judgment. This point is particularly company dependent because it's up to management to determine how much trust to put on your name. Some firms will have that referral relationship only be a name on an application that might get you paid some more money while other firms will paint any referral as your lifelong bestie. When you consider this with the point above, you might find yourself in a situation where you are associated with your friends unprofessional behavior. So, choose your referrals wisely! 

If you keep good company, referrals can be a great way for you to help your friends and increase your income, but make sure you remember these risks before putting their name down!