Employee Referral Programs are quickly gaining popularity and for good reasons. Research shows that employee referral is a cheaper and faster way to hire employees with a 50% slash on time taken to conduct the process. Of course, these recruitment programs do not take up all the recruitment focus, but there are a lot of benefits associated with developing one that works.
An employee referral program allows the current employees to do the recruitment work for you. They will promote open positions to friends, family, and other colleagues. They are likely to explain the details of the company to the candidates they bring forth so they will be more informed and better suited for the open position.
To get started, here are four ways your business will benefit by setting up an employee referral program in your organization.
1. Cost mitigation on recruiting
The traditional hiring process is costly since your organization has to cater for the cost of a job search that may lead to loss of productivity. When you reduce the time and effort taken to recruit a new employee, you also reduce the cost required to carry out the process. The good news is that employee referrals can greatly help to mitigate the recruiting costs since they are hired quickly. In fact, you don’t pay a dime for your employees to do the advertising on any job openings to friends and family. This is a perfect strategy to cut on the cost of job advertisements.
2. Improves quality of task force
When employees refer their friends and family, they are definitely individuals that possess the best qualities needed within an organization. Employees are able to understand the strength and weaknesses of the person they refer to the company before they get to the interview process.
This translates into a number of referrals getting the job. Experts have discovered that once hired, most referrals retain their positions for longer compared to the normal hiring process, because they are a better fit for the job.
3. Extends employee brand
In this era, employees want to achieve more than professional satisfaction. They desire to work in entities that they are proud of. Alison Evans, an HR manager at CareersBooster, indicates that they know what each employer is looking for from an employee which is a perfect way to maintain the employee brand.
So, as a recruiter, you are not only selling a job position, but you’re also selling a brand. In fact, employees are considered the best brand ambassadors, and having one or two who share the same opinion of the company is a good thing.
4. Creates an active workforce
Employee referrals is a powerful way to create an engaging workforce. In this case, employees realize that their employers can trust them and they value their opinion on who can be hired in that organization. Similarly, employees feel engaged since they have someone close to them and it becomes easier to fit into the culture of the company.
Employee referral programs seem to be the best ways to hire and business should wake up to this call. Of course, you wouldn’t want to hire wholly through referrals, but, frankly, it’s the most effective method of hiring in the 21st century.