We talked about the trouble recruiting committee has to go through in the process of finding, hiring and keeping the right talent. Today, we will discuss one of the most effective ways by which organisations; conglomerates have been finding the right talent, since the times of its inception in Caesar Era, if sources are to be believed. We will be discussing Referrals and how an organisation can benefit from implementing effective employee referral program strategy.
Referrals are one of the low-cost, highly beneficial source of hiring suitable talent. Per employee referral statistics by U.S largest shareholder employment market, CareerBuilder, 82 % of employer rated employee referrals above all other sources for generating the best return on investment. Furthermore, employee referrals have an all-encompassing advantage on the operation and productivity of the organisation as it improves the quality of hire and reduces time and cost, otherwise spent per hire.
Let us break down its advantages to understand how referrals serve their purpose :
When compared with job boards, hiring through referrals program is cost-efficient. Companies investing in advertising through job boards are required to pay a considerable amount to be able to attract top talent via various famous job platform. Employee referral program has the provision to pay a bonus to those whose referred candidate gets hired. Since the bonus is generated on the basis of the outcome, there is a considerable difference. Additionally, compared to job boards and career portals, the referral programs have taken less time, effort and resource utilisation.
Another significant benefit when it comes to streaming and enhancing the productivity of an organisation is employee engagement and retention. Since candidates that join via a referral program are well-aware of what the job profile is, what it demands, how is the work culture, they would only agree to the interview when they will feel it matches their preference. Thus those joining the organisation are likely to stay longer. Similarly, this also boosts the chances of retention of employees who have referred the candidates.
Referral program benefits those who referred by not only rewards, but there are inner peace and happiness of looking at known faces in the workplace, which boosts the efficiency and productivity.
Build an effective employee referral program
Despite serving a significant benefit to the organisation, employee referral program is one of the most underrated and under-utilised channels for recruitment. Hence it is imperative that the organisation frameworks and execute robust employee referral program strategies.
HR must make sure that the existence of a programme is known to the whole organisation. The underlying problem to the adequate and effective execution of the referral program is the lacking transparency. The layers between the HR and the employees, which escalates as the size of the organisation increases, can be eliminated by use of technology. Automating the process can he; candidates understand the referral process better.
Keeping employees motivated by enhancing the perks that come with referral hiring will also help in the effective execution of employee referral programme. Bring into practice a tradition to recognise and appreciate the talents that are assisting with hiring suitable candidates.
Keep an eye on the latest referral program trends to make it more efficient. Like implementing hyper-personalised experiences, referral marketing through mobile, etc.
Referrals shall always remain one of the foremost recruiting media. What is needed is to come up with techniques and strategies to implement it for higher gains.