Maximizing Employee Referrals

Your Staff Can Become an HR Referral Source

Scroll down to read more!

Your Staff Can Become an HR Referral Source

Scroll down to read more!
Maximizing Employee Referrals

Table of Contents

The power of an employee referral is well known in the recruiting industry. A recent poll of business showed that 41.4% of businesses referrals account for 80% of sales. From a business perspective that is an overwhelming number in terms of dollars earned from word of mouth marketing. Through the eyes of an HR professional, a referral is seem as the #1 source of a quality hire according to Ere.net. There are rarely any bad statistics when it comes to using your staff as a referral source, but how do you entice them to provide quality hires.

Without incentive your company’s staff are less likely to invite their friends, connections, and acquaintances to apply for a job that might have a higher than normal turnover rate. The cost of a referral is substantially lower, in fact using referral programs for executive and technical positions can really reduce the cost of executive searches or agency fees. In doing so, a well-rounded referral program can make your referral cost lower then traditional sources. The benefits are not only strong from a business perspective, but from a recruiting function, there are many factors that help your company.

Creating and establishing a successful referral program takes time and can only work effectively when your employees are incentivized properly. Here are a few tips that’ll ensure your creating value within your own program:

Creating a successful internal referral system

Knowledge of Open Positions: With larger corporations and several open positions there is usually a disconnect between current employees and recruiters when it comes to positions that need to be filled. Post regular notices, use your internal network, and actively engage your employees in the benefits of using their own personal network to gain better hires. Referrals are the fastest time to fill positions with an average of 29 days. Depending on the size of your company that could cost the company up to $12,500 a year.

Incentivize Your Employees. Who wouldn’t want money whenever a friend got a job? It’s worth it to work for small retail businesses and earn $200 each time a friend is employed. Employee recommendations not only increase retention rates, but 70% of employers also believe that referred workers are more in line with the company’s values and culture. Hourly workers are constantly looking for methods to earn extra money, so your business may benefit from this.

Make it Fun! Who doesn’t want to have fun at work? Create leader boards, contests, promotions, giveaways, and anything else under the sun that’ll make obtaining employee referrals fun. The prize doesn’t have to be monetary, but building a pool of quality employees saves a recruiter time which saves your employer money. This type of program isn’t going to appeal to everyone in your company, but you only need a few competitive people to build lists of 10-15 potential recruits for your business.

Tapping into your staff for referrals

How do you tap into your internal network to find great referrals?

Did you like this post? Share it!

3 Comments

  1. I love this idea and I can attest that employee referrals can be a powerful tool. The key is to make it easy and to make it lucrative for them from a monetary standpoint. What I mean by them is pay them well. Gamification using employee referrals is also a great option companies can consider as part of their corporate referral program.

    JMM

  2. The biggest and most cost effective resourcing tool for us in contact centre recruitment and supports employee engagement and retention

Comments are closed.

A Word From Our Sponsors

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

Recommended Posts

HR Certification Podcast Episode 12: Answering Your SHRM & HRCI Exam Questions

In this episode of the HR Certification Podcast, we are reviewing the 4/5ths rule as well as answering your SHRM and HRCI questions....

How to combine human and AI hiring practices

The world changed in November 2022 when ChatGPT launched, and we’ve never looked back. Whether it’s producing a bank of content or condensing meeting...

HR Certification Podcast Episode 13: HR Metrics & Formula Review for HRCI & SHRM

In this episode of the HR Certification Podcast, we are reviewing the HR-to-staff ratio as well as the cost of vacancy (COV)....

HR Certification Podcast Episode 14: Leadership Review for HRCI & SHRM Exams

In this episode of the HR Certification Podcast, we are reviewing the balanced scorecard as well as types of scorecards within HR....

Checkout Our Products

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

More From Workology

HR Certification Podcast Episode 14: Leadership Review for HRCI & SHRM Exams

In this episode of the HR Certification Podcast, we are reviewing the balanced scorecard as well as types of scorecards within HR.

HR Certification Podcast Episode 13: HR Metrics & Formula Review for HRCI & SHRM

In this episode of the HR Certification Podcast, we are reviewing the HR-to-staff ratio as well as the cost of vacancy (COV).

How to combine human and AI hiring practices

Click on read more to open this post on our blog.

HR Certification Podcast Episode 12: Answering Your SHRM & HRCI Exam Questions

In this episode of the HR Certification Podcast, we are reviewing the 4/5ths rule as well as answering your SHRM and HRCI questions.