The Impact Employee Referral Programs Can Have on Your Employer Brand

July 23, 2018 Chava Vietze


Employee Referral Programs have been a hot topic for a few years. By now, you probably know at least a few of the many ways companies can benefit from strong programs.


Hired employee referrals are typically better culture fits, they are happier employees, they stay longer at the company, they are faster to hire (and therefore, are most cost-effective to hire) and are higher quality candidates than those you receive from other streams (such as job boards that scrape your career site.) Hired referrals save you time, effort and help your bottom line in more ways than you can count.

The benefits don’t stop with improving your recruiting team’s lives. They can have a positive ripple effect across your company. Our clients have found a variety of benefits outside of their immediate recruiting teams.

According to one of our clients, LoyaltyOne*, a global provider of loyalty marketing and programs to enterprises in the retail, financial services, outside of the direct value of filling requisitions, they have found more qualitative benefits, which directly impact employee experience at the company and how employees perceive their employer brand:


“We are able to create this feeling of collaboration where we are working together to achieve one goal. Our associates know that not only are they great people, but we want people just like them. It helps us make them feel like they are valued.”

Another client, Conversant*, a leader in personalized digital marketing, feel that employee referrals provide an important “health check” for the company:

“Employee referrals are a good barometer of the employee populations’ view of a company. If you’ve got a struggling brand externally, it’s going to correlate with difficulty generating engagement internally.”


“Number and quality of employee referrals is a good barometer of employee happiness.

If employees are proud of the company they’re working at, it’s going to make the process of generating quality referrals much easier.”

The strongest employer brands who have high levels of employee satisfaction are those who make their employees feel valued and included. Their employees understand the company’s vision and goal and are motivated to work towards that together, collaboratively.

Think about it… would employees refer their friends and former colleagues to roles at their company if they were unhappy? It’s pretty unlikely (and our customers agree). High impact employee referral programs with strong participation numbers directly correlate to employee happiness.

The high levels of participation mean that your employees want to help grow the company, they want to be a part of that growth, and they care to see how the company progresses. When you encourage and reward your employees for their participation, you are helping to move the needle and build morale amongst team members all while creating a more open and overall enjoyable environment.


*Companies like Loyalty One and Conversant use RolePoint as a part of their employee retention strategies to promote their employee referral programs and engage with their employees.

About the Author

Chava Vietze

Chava Vietze, our Head of Customer Experience, specializes in internal communications, employer branding strategy, and employee engagement and has worked with over 100 enterprise companies cultivating best practices for employee referral programs for over half a decade. She is an advocate for building a strong company culture, which supports its employees' growth, personally and professionally, and is built around its people’s ability to thrive and succeed. On a personal note? Chava has a love for real pizza and bagels (which of course, can only really be found on the east coast where she grew up. She's still searching for the best slice on the west coast). Every so often, she’ll whip up a Margherita pie or a dozen NY-style bagels in her kitchen. She also is an avid traveler (with 2-continents left to conquer) and doesn’t think the weather should ever drop below 68 degrees, which is why the Mediterranean is her favorite place to travel.

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