If you haven’t heard yet, employee referral programs are the investment that payoff time and again. But just in case you need more buy-in, we’re here to make the case for you…or anyone you know that might need a little more convincing. ;)
- They’re the #1 source of hire. 30% of all hires came from referrals in 2016.
- They’re more cost friendly. 51% of employers say that it’s less expensive to recruit via referrals.
- Referred candidates are more likely to stay at the company. Referred hires are #1 at 46% for retention after one year, compared to 33% from career sites and 22% from job boards.
- Referrals are the #1 fastest time to hire. Referrals average 29 days to hire versus 39 days for job boards and 45 days for career sites.
- Employee Referral Programs can positively influence an already strong employer brand and directly correlate to employee happiness. High levels of participation mean that your employees want to help grow the company. When you encourage and reward your team for their participation, you are helping to build morale while creating a more enjoyable environment where your employees can thrive.
- Referral Programs support diversity efforts. In a survey of over 1,000 talent acquisition and recruiting professionals, 40% responded that their Referral Programs positively impacted their diversity efforts.
- Referral Programs support rapid growth efforts. In the same survey, over 50% of respondents stated that their Referral Programs positively supported the rapid growth of their company.
- Referral Programs improve your social media presence. How? Lots of companies run referral campaigns with their employees and ask them to share jobs on their social networks. What’s the outcome? An increase presence on social media outlets like Twitter, LinkedIn and Facebook and an influx of talented referrals from their networks.
- Referral Programs positively impact employee experience. When surveyed, employees responded that they felt they were able to contribute to the company’s growth by participating in the Referral Program and felt that their contributions were valued by the company.
- Referred hires perform better. Hires from referrals produce 25% more profit impact than hires from other sources.
- Referred hires are better culture fits. 70% of employers feel referrals fit the company culture and values better.
Need more convincing?
When asked "How have referred candidates compared on a cost-per-hire basis to other candidate sources?", Nell Heisner, long-time leader in Talent Acquisition and one of the biggest advocates for Employee Referral Programs responded, "Oh my gosh, significantly less, the return on investment for a referred candidate is significantly greater than hiring through a lot of other sources. Referrals are always the best hire!"
Now that you know how important it is to invest in your Employee Referral Program, let us give you 11 more reasons on why you should invest in a centralized platform to run your program with. Click here to read more.
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