What Is An Employee Referral Program?
An employee referral program is a recruitment method designed to allow employees to be involved in their company’s recruiting process. The idea revolves around employees sharing their company’s job vacancies in their own networks and providing recommendations for candidates who apply.
So how does it work?
To make things easy to understand, here is how an employee referral program works:
- Your company signs up for an online employee referral program and informs all employees that their participation would be highly valued (employee appreciation and motivation goes up!).
- Your company posts their job vacancies on the employee referral program. Employees can log into their accounts and share these jobs across social media, through email, and with anyone that they think could be a great candidate (massive reach for your company’s branding and job vacancies over the social networks – hooray!).
- Candidates can apply through your employees’ shares and your employees can provide recommendations for those that they know personally and think are great (you receive good quality applications, most of which will be a cultural fit because they know someone who works at the company already).
- You hirer faster, more cost-effective but more importantly, with more confidence because your new employee comes with a personal referral. (Your employees also feel valued and united!).
If you’re still curious about how much difference an employee referral program can make to your recruitment process, check out these ridiculously good-looking figures:
- LinkedIn’s Global Talent Trends Report 2016 found that a massive 90% of professionals are interested in hearing about new job opportunities – even those that aren’t actively looking for a new job.
How can recruiters reach these people if they aren’t actively looking for a new job? Through their employees’ networks and using social media.
- The Trends Report also found that the biggest obstacles people face is that they don’t know enough about companies or roles when thinking about changing jobs.
Here’s where an employee referral program offers the most value – all your jobs and shares are not only displayed in your company’s branding, but your employees sharing these job offer word-of-mouth recommendations about your company and insights into the position on offer. Hearing the real views, both positive and negative from an employee who works for the company means that your candidates will have a better understanding of the company culture, values and mission, meaning you will receive highly suitable candidates for your jobs.
- The hiring process has been proven to be faster and cheaper using an employee referral program.
Proven by research and studies around the world, employee referral programs can save companies well over $18,000 USD per hire, and statistically are the fastest way for a company to onboard, with just 29 days needed for a referred employee to start work. The referral employee also stays with the company longer and has a higher productivity rate!
If you continue to research employee referral programs, you will no doubt begin to see that asking your existing employees for referrals is the best way to hire. It allows you to turn your employees into a powerful recruiting source that provides you with high quality, culturally fitting candidates.
If you’d like to explore a real employee referral program and see exactly how it works, you can try ours out. for free. In fact, you don’t need to pay if you don’t want to.
If you still want to read more about it, you can also check out our Library page where we have everything you need to know!