Consistently recruiting high quality candidates is no small task. Most recruiters spend months and years trying to master the art of juggling candidates and keeping their pipelines stacked. As clients drop in and out, the recruitment process can become incredibly complex at the drop of a dime.
According to SHRM, the most effective recruitment channel is employee referrals, which delivers over 30% of hires. Yet the benefits of employee referrals extend as much into workplace culture as they do into hiring new talent. Below we break down how employee referrals are one of the key ingredients of an effective recruitment strategy.
1. Promoting an Engaged Workforce
One of the biggest benefits that come with an employee referral program is increased staff engagement. An accessible program allows staff to put in their recommendations and receive financial compensation for choosing a quality candidate. Getting your employees involved in hiring decisions is a great way to boost their productivity and the overall morale of the workplace.
2. Referral Programs Increase Efficiency
When it comes to talent acquisition, time is one of the foremost concerns. In a sluggish economy, it’s vital to keep time to placement at a minimum. Setting up an employee referral program allows employees to recommend quality talent quickly, without the need for posting endless job adverts. Likewise a referral program can also provide you with a stream of employee referrals, which can help stack up your recruitment pipeline.
3. Driving Competition
Competition is a key element of most recruitment company cultures. Incorporating an employee referral program is a great way to add extra incentives for referring new staff. Using metrics like the number of employee referrals made and tracking successful placements can be a great way to measure how effective your current recruitment strategy is. You’ll also get feedback on whether you need to double your efforts!
4. Expanding Your Network
Any recruiter worth their salt knows the importance of networking and employee referrals can help to build an entirely new network of contacts. With a referral program an employee can reach out to contacts in their personal network and introduce them to the company. This expands the reach of your organization as well as getting some new hires. It’s worth noting that many of these candidates will be passive hires or jobseekers who won’t be accessible from traditional recruitment avenues.
Employee Referrals Optimize Your Network
The biggest positive of an employee referral program is that it allows you to optimize your network. A referral program gets your staff more engaged in the hiring process and provides them with the incentives needed to reach out into their personal works and connect you with new talent. This far outstrips the traditional reach of job boards, which only hit active candidates.
By increasing the reach of your network you increase the standard of talent that you get through the door and promote a workplace environment that rewards active engagement. The more candidates you have ready in your pipeline, the more likely you’ll be able to find a new hire that fits your company culture.