Recruiting the right people is hard work, and that’s why Employee Referral Programs are growing with popularity. Instead of solely relying on recruiters and job boards to fill vacancies, you can let your employees do some of the heavy lifting by tapping into their personal networks to find suitable people for the job. With their help, you get to reach a vast talent pool within a short amount of time. A referral program is the best way to hire, but what is an Employee Referral Program exactly, and what can it add for you?
What is an Employee Referral Program?
An employee referral program is an internal recruitment process where current employees refer potential candidates for a vacancy through their network. Instead of using outside hiring techniques, current employees help recruiters source candidates that fit the job description and company culture, and in return, they receive incentives or a financial reward.
Here are some reasons why an employee referral program is the best way to hire:
Maintains Company Culture
Fostering a positive company culture doesn’t happen by chance; it actually requires careful planning and consideration. That’s why it’s essential to maintain it by recruiting candidates that are a cultural fit. Enable your existing employees who understand your business’s vision, mission, and cultural values to play the match-making role. Since your employees are familiar with the kind of work that needs to be done, the skills required, and the sort of people you’re looking for, you’ll usually end up with fitting applicants who understand and share your values.
An employee referral program is one of the best ways to engage your employees in a meaningful way. Employees want to feel that they belong, and instilling a referral program helps make them feel like they have a hand in the company’s development, which is exactly what they’re looking for. This increases your employees’ attachment to your business and makes them feel like they have a stake in the business’s future. Rewarding employees for their referrals will also make them feel appreciated.
Increase Employee Retention
Finding the right employees is one thing, but keeping them around is another. Employee referrals are considered more reliable and successful than traditional recruitment methods. The reason for that is simply because: good employees will bring good candidates. In addition, the referred new hires will usually have a good idea of the company’s vision and work culture, so they’re aware of what’s to come. Besides, current employees are unlikely to encourage others to work at your company unless they, themselves, believe that it’s a great place to work. Employees found through these referral programs are likely to stick around longer than those hired through traditional channels.
Cut Recruiting Costs
There’s no need for expensive advertising when you have an employee referral program. With your employees advertising your job openings to friends, family, and their network, you don’t have to pay extra costs for job boards, recruiting fees, and agency commissions. Not only that, but you will be saving much time in screening candidates, which has already been done by the employee that referred them. This will positively impact the hiring cycle within your business by shortening it and bringing down the overall hiring costs.