In today’s competitive marketplace, you need to keep your hiring toolkit stocked with the most effective methods possible of finding and hiring top talent. As you consider all the options, don’t overlook one of the most potentially valuable ones that’s already right there, under your own roof: your current employees.
Employee referral programs have proven to net applicants of higher quality than those sourced from the general public. In addition, these hires are more likely to stay at your company longer and perform better. This all adds up to you spending less time hiring, reducing turnover, and increasing overall company productivity.
How to Get Started
Your employee referral program should mesh seamlessly with your overall recruiting strategy and work in tandem with your other tools and tactics. It won’t be a panacea, but done right, it can be an extremely important aspect of your talent acquisition success. As you build your program, remember to:
Decide when you will ask for referrals.
Base the answer to this question on your specific hiring goals. For instance, if you want to fast track your recruiting process more than usual, it makes sense to ask for referrals right away. Also, look back at how hiring to fill a role has worked for you in the past. Have certain job boards or social media approaches been successful? There’s no need to fix a process that isn’t broken. Keep an open mind and consider all your options, including employee referrals.
Communicate and engage employees in your program.
Make sure your employees are aware of your referral program and know how it works – as well as the benefits for them, should they decide to participate. They should know what the necessary requirements of a position are and what steps they need to take to make a referral.
- Motivate and reward participants. Referral bonuses go a long way toward motivating more people to engage in your referral program. As you communicate, be clear about all the terms related to bonuses and what constitutes a successful referral.
Track your progress.
Like all aspects of your recruitment strategy, your goals should be measurable and you should monitor progress on a regular basis. Metrics you analyze may include:
- Number of total referrals versus number of hired referrals. If people are frequently referring candidates who don’t qualify, you may need to reassess your requirements or their motivations in making the referrals in the first place.
- Turnover and retention rates for referred candidates versus other employees. Generally, referred candidates stay at their companies longer, but see if this applies at your company. If so, is it the case across the board or more so in certain departments, positions or seniority levels? Having this information will help you fine tune and continuously improve your referral program.
For additional insight as you develop your employee referral program – as well as any and all aspects of your ongoing recruitment efforts – contact PrideStaff Northern Kentucky today.
Leave a Reply