Asking for help from people, even if they are close to you, can be challenging and awkward. Similarly, companies often keep aside tons of money and resources on third-party resources to drive candidates. At the same time, they could easily tap into the network or those closest to them—their current employees. This article will help you learn more about an employee referral program and why it’s worth the investment.
What is an Employee Referral Program?
An employee referral program involves leveraging your current employees to identify qualified candidates within their network for your open positions. Instead of utilizing traditional hiring methods like classified ads or job boards, ask your employees for help. Encourage them to share job postings to their network and offer a bonus if their referral is hired.
The main principle behind an employee referral program is that your employees (who intimately know your culture) will determine which applicant is a great fit. That’s not the only reason you might consider an employee referral program.
Benefits of Employee Referral Programs
Before you get all sweaty-palmed at the thought of asking employees to help with the hiring process, you should consider some of the great benefits that come with implementing an employee referral program.
Encourage Greater Employment Brand
Employees are a company’s greatest advocates—the more they talk, the better. According to a 2015 study, nearly 75 percent of job seekers consider the employer’s brand and reputation before applying for a position. Thanks to platforms like Glassdoor, former employees and applicants get a place to express their opinion. This can be vital when you are making an effort to engage them.
These programs also encourage current employees to think about the positives of working for your firm and then go about spreading the word to their network. Even when the employee doesn’t have a specific person in mind, the right incentive will result in social media posts and other forms of sharing on a large scale.
Improves Quality of Hire
When employees refer their family or friends, they are likely recommending people who carry the qualities required to succeed with your firm. Current employees understand their referral’s strengths and weaknesses. They know the referral’s performance will reflect on them. What’s better, this turns out to be quite effective—Carrerify found that nearly 23 percent of referred employees are less likely to quit than the other hires.
Your current employees may mentor the referred candidate throughout the hiring process. While this may seem like an unfair advantage, it is actually beneficial for all. For instance, the new hire will already be familiar with the responsibilities and expectations of the organization even before the mandated onboarding.
Maintain Company Culture
“Culture” is a big buzzword in the corporate world for a good reason. A study conducted by the Columbia University found that organizations with rich company culture have less than 14 percent turnover. Conversely, those with poor company culture may have over 48 percent turnover. What’s better, a solid corporate culture generates happier and more productive workers.
Strong company culture isn’t easy to foster. Luckily, your employees already understand these values and will refer contacts they think are the right fit. This means you are more likely to end up with applicants who understand and share your organization’s values.
Employee Referral Program for an Engaged Workforce
Many businesses find the hiring process quite challenging. There are a lot of aspects you should consider, and the stakes are always high. Taking the wrong step when onboarding a new hire can damage your team morale and waste lots of your time and effort.
By leveraging a well-optimized employee referral program, you can wave goodbye to some of that stress. Finding suitable candidates gets much more straightforward, and the quality keeps rising. Offering a seamless interview and onboarding process for new hires and rewarding your employees for referrals will also boost employee engagement levels across the board. As a result, workers will be more loyal to your organization.