Every company wants to recruit the best people but resources are spent on sources that provide the most candidates. What if there was a source that provided more quality candidates that were easier to hire? Yes, we are talking about Employee Referrals. Let's explore some of the benefits of hiring referrals.
Asking employees to help fill open roles is nothing new but did you know that 82% of employers stated that employee referrals generate the best ROI compared to all other sources? Referred candidates also progress through the hiring process faster than candidates sourced through job sites.
Referrals Produce Quality Candidates
By leveraging the connections and expertise of current employees, companies can gain access to a pool of highly qualified candidates who are more likely to fit in with the company culture and excel in their roles. Here are five ways referrals can make a difference.
Employee referrals often lead to a better cultural fit. When an employee refers a candidate, they are vouching for that person's ability to fit in with the company's values and work style. This can lead to a more harmonious and productive workplace.
Speed Up The Process
Referrals move through the process 55% percent faster than other candidates. They are already connected to the company through your employee so reaching out and communicating is much easier. Many referrals are already happily employed so if they are not interested or not qualified they will be more upfront about it. This can save you a lot of time on sourcing, screening, and negotiations.
Most referral bonuses are conditional so you only spend money when the process is successful. This makes employee referrals less expensive compared to other sourcing channels. Often times referrals will stay with the company twice as long when compared to other candidate sources which leads to long term savings as well.
Employee referrals are a powerful method to create an engaged workforce. Your existing employees feel trusted and valued because they are given a part in the company's future and growth. They'll also feel proud and accomplished if their referral gets hired. This can lead to higher employee retention rates and a more stable workforce.
Building an Employee Referral Program That Works
Employee referral programs are probably already in place at your company, but it's important to know how they succeed and grow. When creating an effective employee referral program, here are a few things to keep in mind:
Provide Employee Referral Incentives
Employees love to help out but sometimes they need a little persuasion to reach out to their friends. Giving them referral incentives is an excellent way to motivate them to do so. Of course, it doesn't always have to be monetary incentives. You may also offer them other incentives like extra paid holidays, employee recognition, or other work opportunities.
Keep Employees Updated and Collect Feedback
Employees love to stay informed on the status of their efforts. Without feedback it can seem like the referrals are going into a black hole. Updates along the way help employees know their referrals are valued. Furthermore, it's also courteous to listen to their feedback or other suggestions regarding your employee referral program. Remember to keep them involved, so they are more engaged and active for your brand.
Easy to Use Referral Portal
Using EmployeeReferrals.com to manage referrals makes life easier. Employees can use the mobile or web interface to refer their friends from anywhere. Once the referral is submitted they can track the progress from their dashboard. Admins can take advantage of the automated marketing suite that creates a steady stream of referrals coming in. Incentives and eligibility are tracked automatically making the reward process simpler.
Prioritizing employee referrals in your hiring process can be a win-win for both the company and the employees. Not only can it improve the quality of hire, but it can also foster a more engaged and productive workforce. Consider expanding your referral program to see the benefits for yourself.