The Benefits of An Employee Referral Program

Press Release from Squadron Recruitment Process Outsourcing

If you’re a business owner or HR manager struggling to find new employees right now, consider adding a simple but sometimes overlooked strategy to your hiring plan: An Employee Referral Program.

According to Apollo Technical, job applicants who are referred by colleagues are far more likely to advance in the interview process. Employee referrals also increase the likelihood of a job match by as much as 6.6 percent.

In a world of high-tech hiring tools, employee referrals may seem archaic. But it’s a tried and true method that has become even more reliable, thanks to AI technology.

So, get set for increase this spring with insight on why employee referrals work, and how to make them work better.

  • Increase your employee engagement.

Most employees want to feel as though they are making a positive contribution to their workplace.

Giving them the opportunity to offer direction and input on the people hired to work alongside them makes good business sense; they may understand the requisite skill set better than your HR manager.

Apollo Technical says employees are more likely to suggest potential candidates if they are rewarded. Over 70 percent of organizations do provide monetary incentives generally ranging from $1,000 to $5,000.

Engage for Success notes that with the advance of Applicant Tracking Systems (ATS), hiring managers can now easily ensure that employees receive notifications about job openings, and reminders about associated referral incentives and how to qualify.

There are many AI programs with the ability to streamline your employee referral program, mitigate biases, and instantly reward employees who have recommended a quality candidate.  Learn more through a complimentary call.

  • Increase your employee retention.

It feels good to join a company where there are familiar faces.

Apollo Technical reports that over 45 percent of employees referred by colleagues stay for more than four years, while only 25 percent of employees sourced through job boards stay for longer than two years.

It’s safe to assume that an employee who refers a friend or relative has already briefed that person on the company culture, and the job you’re looking to fill.

Essentially, they’ve been pre-screened.

This shows the employee is invested in your mission, and probably interested in sticking around long-term; after all, no one is going to invite a friend to join a company they’re desperate to leave due to workplace toxicity, or vague, unattainable objectives.

To make your employee referral program work better, it’s important to plan ahead:

 Request employee recommendations before publicly advertising job openings.

 Spread the word using email notifications or internal messaging that links to a detailed job description. Make sure the page is easy for employees to forward and share with their contacts via social media.

 Ensure job vacancies are visible: Post staff room signage or use a bulletin board. Your employees may be bombarded with emails and messages; signage will help make the information stand out.

 Provide basic training on what to look for in a candidate prior to submitting any referrals. Go over all necessary company guidelines.

 Create a reward process and explain how it works (what the employee will receive, the criteria needed to receive it, when and how they should expect it).

 Research AI programs that can help you with the execution and delivery of your employee referral program.

Need help building a recruitment strategy that includes an effective employee referral program?

We’ve got you! Book a free consultation here.