The Power of Referrals

Networking is the key to your next job.
By Jeremy Schifeling, MBA’12 and Kierra Trotter

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Read time: 3 minutes

The job search isn’t just about what you know, it’s about who knows you and trusts you. No matter your career stage, referrals have become the most crucial factor in landing new opportunities.

Understanding Todayʼs Job Market

Today’s job market is more competitive and complex than ever. While sectors like artificial intelligence and skilled trades are expanding, most white-collar fields are saturated. Early-career professionals often struggle to “break in” when positions require years of experience. Mid-career job seekers face barriers of being “overqualified” but not quite at the leadership level. Late-career professionals must navigate age and salary biases. In every case, applying to jobs online without connections is less effective than ever. With the ease of one-click applications and AI-generated resumes, recruiters are now receiving double or even triple the number of applications per job compared to just a few years ago. Automated systems weed out most applications before a human sees them. The odds? On average, the likelihood of receiving a job offer from one cold application is between 0.1 to 0.2 percent. That means you’d need to send more than 800 applications just to reach an 80 percent chance of getting one offer.

Referrals Change Everything

This is where referrals come in. Referrals are nine to 10 times more likely to receive a job offer than cold applicants. Hiring managers are looking for trustworthy recommendations in a sea of anonymous resumes. A current employee saying, “I’ve worked with this person and they deliver great results,” significantly boosts your chances of being noticed and considered by the hiring team. Generic or distant referrals — “We met once at a conference” — don’t matter nearly as much as strong, credible endorsements tied to real experience.

Shifting Your Job Search Mindset

Given these odds, perfecting your resume is far less important than many realize. Of course, a clear and accurate resume is necessary, but endless polishing won’t make your application stand out in a crowded, automated process. The best use of your time and motivation is a strategy that focuses on building meaningful relationships.

The Alumni Career team recommends spending your job search time as follows:

• 80 percent on networking and building relationships.
• 10 percent on preparing your resume, cover letter, and LinkedIn profile.
• 10 percent on submitting job applications.

Networking is the activity; referrals are the outcome. Authentic relationship-building should always come before asking for favors. Approach your networking with curiosity, ask thoughtful questions, and genuinely listen — professionals are much more likely to become your advocates if they feel heard and respected.

Networking isn’t about “bothering” people or making cold asks. It’s about building community. Most professionals, especially fellow U-M alumni, want to help those who reach out sincerely. Your value lies in your achievements and relationships, not just your current job title.

Take Action

You don’t have to face the job search alone or feel frustrated by online applications that go nowhere. Spend your energy where it really counts: building relationships and generating referrals. Explore alumni resources, tap into informational meetings, and check out The 2-Hour Job Search workshop for a step-by-step formula to turn networking into job offers.

In today’s market, referrals aren’t just helpful, they’re essential. Invest in connections and let your U-M network work for you.


Jeremy Schifeling, MBA’12, is a career expert, author, speaker, and founder of The Job Insiders.
Kierra Trotter is the director of alumni career and lifelong learning for the Alumni Association of the University of Michigan.

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