In a recent LinkedIn survey, 32 percent of employers listed employee referral programs as their top source of quality new hires.
When it comes to effective recruiting – including lowered costs, a more engaged workforce, and higher long-term retention rates – an employee referral program can be a major boost to your hiring success. As you leverage your current employees’ personal and social networks, you’re more likely to bring in talent that easily fits your company culture. Candidates attracted by current employees tend to be much better suited for an organization that those with no previous knowledge. Here are several benefits of an effective employee referral program.
Control Your Hiring Costs
Glassdoor has reported that hiring times are steadily increasing at most companies. In the U.S., the average interviewing process takes approximately 23 days. You can accelerate this time frame – and the costs that accompany it – by hiring referred candidates, as extra screening steps, investigations and negotiations may be eliminated.
- Save on job postings and advertising. Your current team members know your company and its culture. As a result, they can make a better sell through personal relationships with prospective talent.
- Offer referral bonuses. These will amount to a fraction of what you might otherwise spend.
Watch Engagement Grow
Your best employees can speak from personal experience about the benefits of working for your organization. If you make them your recruitment ambassadors, they feel more trusted and valued, as they are actively participating in future company growth.
- From the start, referred employees feel more engaged, since they already know at least one person at their new company. This enables them to more easily assimilate into the culture. As noted by one HR professional, a referral program is a “great way to build glue in a company.”
Candidates hired via employee referrals tend to stay longer with a company than those recruited through other means. Consider these statistics from recent research:
- Fifty-six percent of employee referrals said they had been in their current roles for more than five years.
- Nearly two-thirds of referred employees said they, in turn, referred at least one other person to an open position at their company.
And hands down, a majority of employers reported their referred employees outperformed others on most aspects of performance and cultural fit.
Looking for a recruitment partner?
Do you need help designing and implementing your employee referral program? For effective direction in this and other hiring and HR solutions, turn to the PrideStaff Modesto team. Contact our team of Modesto recruiters today so we can get started on a plan custom designed for you.