Why Do You Need An Employee Referral Program?

Great talent serves as a solid foundation for great companies. The best organizations are built on talented individuals who understand their goals and work hard to achieve them. It should go without saying that building a strong talent pool for your company is a prerequisite to success. Companies can source great talent from various channels with a diverse pool of established recruitment practices and methodologies.


A lot of times, thriving companies with a strong human resource foundation will already have a team of employees with well-established networks for talent sourcing. The best companies understand that tapping into the resources of their own employees will most likely yield positive results.

Here are some reasons as to why employee referrals might be your best option when it comes to expanding your talent pool:


1.Referral candidates are prescreened

If you are confident with the talent base that you have already built, it is fairly certain that referrals made by your talent base will also meet your corporate standards.
This is due to the fact that employees who have spent ample time working for a company will be familiar with the hiring process, and will be able to serve as a front-end screener for possible recruits. This also means that established employees can help filter candidates with adequate job competencies, educational background and skills.

2. Referral candidates are untapped talent

A lot of times, going outside the traditional pool of recruits can yield the best results for your company. Passive candidates is an untapped talent pool that is difficult to attract and hire due to inaccessibility. These candidates are working stable jobs and showing outstanding results and they’re the ones that companies are pushing to recruit. Since they are not actively pursuing other job opportunities, the Referral Recruitment method is the best way to attract these passive candidates to work for your team.


3. Referral candidates fit into workplace environment easily

With employee referrals, incorporating new recruits into the workplace environment and the company culture shouldn’t be as difficult as with traditional recruits. More likely than not, these referred recruits will already have established relationships with people working in your company. This makes it easier for the recruit to adapt to the company culture and working environment. Having your employees refer new recruits would also make it easier for the company to establish point-persons for helping new recruits transition into everyday office life.


4. Referral candidates are more likely to work harder

Think of this: you already have a growing business, and that is why you feel the need to expand. You have a team of trusted employees who deliver quality performance as they meet your expectations every day. When you put your trust in your company’s top employees, you could also safely put your trust in the recruits that they will refer to you. It’s one of the basic unspoken principles of employee referrals. People will most likely bring in like-minded workers who produce similar results.


5. Referral candidates won’t leave as quickly

Finally, this is just another perk of recruiting via employee referral.  Data available on Jobvite Index and other studies have shown that employees who were recruited with the Employee Referral method were more likely to stay longer than those who weren’t. This benefit is attributed to a variety of reasons including an employee’s overall delight at the recruitment process and the ease of incorporation into a company culture. This diminishes chances of employee turnover and ensures you have a solid team in place which will help your company achieve its long-term goals.

While these are only a few of the many advantages that Employee Referral can bring, it’s safe to say that Referral Recruiting is worth investing in. Firstbird offers a cloud-based, fully customizable  Employee Referral System that is designed to meet the talent sourcing needs of your team or company with efficiency.

Visit us at https://www.firstbird.com to learn more. 



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Majella Grawatsch

Originally from Brisbane, Australia, Majella completed her studies with a Bachelor of Business majoring in advertising from Queensland's University of Technology. After a few years of working in the gaming and entertainment industry in the APAC market, she moved to Vienna, Austria and joined the Firstbird team as a copywriter in 2016. She has never looked back, and now works across marketing, partnerships and sales in Firstbird’s international team.

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Employee Referral Benchmark Study

We collected data from 143 companies, and, in the following study, we provide you with the answers.

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