Every business understands that having the right employees is an essential component of success. However, some organizations overlook an excellent source of suitable candidates when filling openings: referrals from their own employees.
Your employees will have a strong grasp of your company culture and a good sense of who might be a good fit. Offering an employee referral program is a great way to motivate your current team to help you bring in high-quality hires with minimal time and expense.
Job boards may bring in a lot of applicants, but they do not produce hires at the same rate as employee referrals. According to data from CareerPlug, applicants who apply from a referral are 85 times more likely to be hired than applicants from a job board.
Each program offered by Smart HR is tailored to the organization’s specific needs, but the process will generally include the following components:
- Defining your vision for your team’s growth, including your current hiring needs, long-term goals, and core values
- Determining what motivates your existing employees
- Setting the program’s rules, with a focus on simplicity and clarity
- Determining who can make a referral, whether it is based on seniority, longevity or other metrics
- Establishing any limits that might be placed on how many referrals an employee can make in a year or another set period
- Setting a suitable reward. A cash bonus is widely considered the most appropriate reward for a successful referral, but other options can also be considered, such as additional vacation days, trips or experiences.
- Promoting your program, ensuring that employees are aware of it and are excited to participate. This may include marketing the program and including it in onboarding materials.
- Devising a plan to maintain the referral program in the long term, which may include offering incentives.
- Tracking and measuring the results of the employee referral program to determine metrics such as employee referral rate, participation rate, and referral to hire ratio
- Qualitative analysis of the employee referral program, including assessing the satisfaction of the hiring manager, candidates and referring employees
- Evaluating the program to ensure it is reaching the specified goals and revising the approach as needed to maximize results
Benefits Of Smart HR’s Employee Referral Programs
Here is a brief look at some of the benefits of using our services to establish an employee referral program.
Candidates who are referred by employees who demonstrate your organization’s core values are more likely to be a good fit. This makes vetting and hiring significantly quicker.
Referred employees are often easier to onboard because the employee who referred them may have already given them information about how the company operates.
Because referred candidates have a better chance of being a good fit for your company culture, they are likely to be more satisfied at work, have better relationships with their colleagues, and stay with your organization for longer.
Contact The Human Resources Specialists
To find out more about how you can launch an effective employee referral program, get in touch with the human resources professionals at Smart HR today.