Companies are always looking to make the best possible hiring choices. While they might use an outside recruiting company, social media sites for passive talents, and traditional job boards, implementing a program for employee referrals is one of the most successful ways to find qualified candidates who are likely to last at the company.
It makes sense. Employees tend to know and recommend people with whom they would like to work, who share the same cultural fit for their professional life, and who they would feel proud to bring into the company.
Benefits of an Employee Referral Program
Better Retention
Employee referral programs enable better retention rates. Your employees understand what it’s like to work at the company and what the company culture is like. This leads to them only recommending candidates who would respond well to the culture and work environment. Since many referral programs include incentives for employees if a new hire stays on for a certain number of months, they often take this longevity into consideration as well before they make a formal recommendation.
Engages Passive Talent
As you discuss open opportunities with your employees, they might pass along this information to their connections, which engages passive talent. Even if they aren’t looking for a job, it could prompt them to apply or also encourage them to seek your company when they decide to look for a different job.
Better Cultural Fit
In recent years, many employees have sought different jobs, mainly to find a better cultural fit. When candidates are referred to the company by current employees, there is a better chance that the cultural fit will be a match since your employees already understand the work environment.
Steps to Implement an Employee Referral Program
Create User-Friendly Process
When you are ready to implement your employee referral program, you should follow the basic rule of keeping it simple. Your program should require your current employee to do the least amount of work possible. The more steps your employee has to complete in referring a candidate, the less successful your program will be. Once your employee gives over a referral and contact information, your hiring team should really take it over from there.
Communicate Goals with Your Employees
Once you’ve decided on how your employee referral program will work and you’ve ironed out all the details, it’s time to present and train your workforce. Be sure to go over:
- The practical information on how to use your program
If there is any software to use or you want specific steps to be completed during the referral process, you must train your employees on how to do this correctly.
- What your company is looking for in referred candidates
During your training, you should communicate to your employees what qualities you are looking for in any referred candidate. Don’t assume that your employees know what you’re looking for. Be specific so that you will get quality referrals. Both you and your employees appreciate meaningful referrals because you both want the benefits!
- What your employees can expect for referring candidates
This last piece of training is extremely important. Employees should be educated on the next steps after they refer a candidate. This way, they can communicate your process to their referrals, minimizing confusion and discouragement from candidates waiting for a response from the hiring personnel.
Keep Employees Engaged
If you want your employees to refer candidates, they need to know what positions are open! This could be as simple as sending out weekly or monthly emails updating your employees on open positions.
Get Expert Advice on All Things Employee Management & Recruiting
If you need guidance on implementing referral initiatives or other recruiting efforts, contact Expert Staffing.
