Keeping your recruitment pipeline stacked with prospects is one of the most difficult challenges in any industry. Recruiters are constantly trying to screen and prospect candidates' backgrounds in order to fit them into the right company culture. Yet increasingly, more recruiters are relying on employee referral program’s to streamline their recruitment process.
An employee referral plan allows employees to recommend individuals for positions within their company. They can put forward friends, family and acquaintances via a software platform. Below, we take a look at the top reasons why so many are making the transition to using referrals and why you need an employee referral program.
1. Saving Time
One of the biggest reasons to implement a referral program is to save time. Time is money, and in this economy no one has time to waste. Introducing an employee referral program to your workforce eliminates much of the screening procedure needed to scrutinize new prospects. Your staff will only be putting forward those they trust to do the job, and effectively act as character references.
2. Cost Efficiency
Most businesses dread the recruitment process because it can turn out to be a long and costly process. Yet an employee referral program is remarkably cost efficient. It costs nothing for employees to tell their friends and family about job openings in your business, meaning you can spend less money on advertising. In addition, you also save money by avoiding any recruitment fees as well.
3. Increasing Employee Engagement
Referral programs also have the bonus of increasing employee engagement. By allowing current employees to recommend new hires, you signal to them that they are a respected part of your working culture (especially if you provide financial incentives). Then once you select a new employee, they feel more engaged because they already know someone on the team. It’s a win/win.
4. Higher Retention Rate
Lastly, hiring talent that’s certified by your current staff will boost your retention rate dramatically. Using an employee referral program provides an average retention rate of 46% compared to the rate of 33% from career sites. It’s no secret that the best and most loyal talent is usually recruited internally through colleague recommendations. A higher retention rate not only promotes a better working environment, but also stops you having to recruit as often!
A Driven Workplace
Implementing an employee referral program is a great way to drive your cost efficiency whilst making your current employees feel valued before taking on new hires. The hard benefits of an employee referral program are certainly clear, but there’s also the intangible positive of cultivating a workplace that energizes staff.
The more content your staff and new hires are, the harder they’ll work and the more they’ll drive your productivity. Including your staff in an employee referral system makes it clear that you value their contributions and respect their knowledge of the industry. Ultimately, this makes for a new wave of candidates that not only survive in your organization, but thrive.