Employee referral programs
Human resources and recruiting managers may reach out to its current employee base or clients for referrals when filling open positions. This tactic can yield quality candidates and studies have suggested that referral programs result in better performing candidates and higher retention rates.
According to a Workforce Management and Ohio State University study, candidates hired through an employee referral had a 25% higher retention rate than those hired through other means. With turnover cost estimates as high as 150% of an employee’s annual salary, the savings are significant when it comes to retaining talent.
If your company is considering an employee referral program, keep the following tips in mind:
Be proactive with referrals
In order to keep interest in the program, employees are keen to know that they’re referrals are being vetted in a timely manner or even being vetted at all. Follow up with an employee if their referral is in the process or provide feedback on the quality of the referrals to better target the right candidates.
Outline rewards for referrals
Although a monetary bonus can be offered for a successful hire, there are other ways to motivate and reward employees for successful referrals. Options like additional paid time off, public recognition or charitable donations can also be motivators to employee’s offering referrals.
Leverage social media
Top performers within an organization have multiple contacts in the social media world. Target those networks that top performers have built by encouraging them to recommend contacts within their online networks.
Train employees to pre-screen
Provide a proper job description, qualifications and any necessary certifications so that employees can evaluate if the referral fits the minimum criteria. You may also want to have a standard assessment document that can be completed by the employee. This document will challenge the employee to actually know the work background and skill set of the referral and help reduce the amount of inappropriate referrals.
If you have a great system in place to hire the best talent, it makes sense to leverage that talent pool for more top performing talent when new positions come available. EJ4 can assist in creating a training program to compliment the efforts of an employee referral program. Let us know how we can help.