The Almighty Referral: It’s All About Who You Know
It’s no surprise that many companies offer compensation for employee referrals when they account for nearly half of new hires (even at a 4% application rate). According to Jobvite, 67% of employers and recruiters said the recruiting process was shorter, and 51% said it was less to expensive to recruit via referrals. Sales positions are the most common roles hired by employee referrals, followed by engineering and customer service roles.
Here are a few reasons employee referrals significantly benefit your workforce:
A-Team. Like-minded people attract like-minded people. Your employees know what kind of company they work for and who would thrive best in that environment. They also know that anyone they refer is a reflection of themselves so they recommend only the most viable candidates. Employee referral programs not only show higher engagement of current employees but also encourage long-term engagement of those hired from that referral.
Timing. Applicants hired from employee referrals will start their positions almost twice as fast and those who applied through a career site. This means everything when you have to hire a quality candidate in a pinch!
Productivity. Statistics show that those recruited through employee referral programs yield higher rates of productivity than those recruited via job boards or career sites.
Turn Over. Employee referrals tend to stay longer than those hired through job boards or career sites. Over three years longer to be exact—which will save you both time and money.
While job boards and career sites provide a mass quantity candidate pool, employee referrals yield more qualified applicants. If your organization doesn’t offer an employee referral program, consider implementing one. Even small things like recognition awards, bonuses, and prime parking spaces could attract and entice more A players for your team.