Employee referrals are a great source for companies looking to hire additional talent into their workforce.
Research has shown that the most effective method for companies to use when hiring is employee referrals. On average, it took 10.4 referrals from current employees to find a new hire, whereas other sources such as job boards, print ads and social media took over 100 possible candidates to find one that the company hired.
Given the excellent ratio of referrals to hires, it's easy to see why companies are centering their employee referral programs around referrals provided by current employees. The benefits to hiring with employee referrals are virtually endless but the biggest advantage is likely that the current employee who has worked with the company knows what it takes to be successful with the company and will likely only hire people who they think will be able to emulate the standard of work the company is after.
The other benefits of using employee referrals as a central part of a company's employee referral program include the following:
- Strong candidates with great qualifications that usually fit the company's blueprint for success
- Have confirmed skills and abilities as recommended by a current employee
- A current worker who knows what their company values believe this candidate is a great fit
- Current employee is somewhat accountable for the new recommendation that they make
- The cost of hiring a referral is much lower due to the lack of marketing that must be done even after paying bonuses out for referrals
- Usually hiring a direct referral will be a much quicker process than finding candidates from other sources
- The current employee can help mentor the new recruit into what the company is looking for based on their own past experiences being hired at the same company
- Employee referrals can offer a steady stream of new talent coming into the company, which can help boost company performance and bottom line.
Offering a monetary bonus to the employee who makes a referral that turns into a hire can provide more motivation for employees to recommend people they know that may be a great fit for the company.
Even after monetary bonuses are handed out, referrals are proven to be, by far, the cheapest and most effective way to add new talent to your company.
Consider making employee referrals the center of your employee referral program for your business to reap the benefits.