Employee referral programs are one of the most effective ways to find outstanding new talent for your company. An employee referral program policy outlines the process whereby current employees can promote open positions within the company and suggests potential candidates. These programs have proven to be highly effective for direct hire staffing because a valued employee will likely have a large professional network of both active and passive candidates to choose from.
With a stellar employee referral bonus program, your workforce will have ample reason to present your company with the very best candidates. Referral programs have been so successful that Jobvite found that a majority of all new hires – some 40 percent – are now found through employee referral initiatives. This is compared with 21 percent from professional websites and 14 percent from job boards.
“40% of new hires are found through employee referral initiatives.”
The key to a successful employee referral program policy is focusing on more than just the bonus at the end. There are a number of strategies that can be used to ensure that your workforce is engaged with your organization’s referral initiatives. Below are four employee referral program best practices for creating a successful employee referral program for your company.
1. Promotion is Key
Employee referral programs tend to get overlooked. Without a comprehensive promotional campaign, the company could be underexposed to high caliber talent. Business New Daily explains that your workforce should be reminded often, of the benefits for getting involved in the company’s employee referral program. And no, a couple of promotional emails will not cut it! Human resources teams should get creative. Hold special seminars or meetings dedicated to the program, or, hold an off-site party to celebrate the launch of the program. Meetings and events are proven to be effective because it is a perfect opportunity to network with potential new candidates that an employee may bring along.
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2. Streamline the Process
Your staff is already busy and will likely be deterred by an employee referral program policy that is overly involved. Do not over complicate the process for submitting an internal referral. A multi-step process might intimidate employees and keep them from recommending qualified candidates. Small Business Trends suggests that allowing employees to simply email referral recommendations should suffice.
A post-work social engagement could be a great way to network with prospective employees.
3. Offer More Than Just Money
While large cash bonuses are definitely enticing, there are also other ways to keep your workforce interested in your employee referral program. Modern corporate life can be hectic and fast-paced, so incentives such as paid days off or even mini-vacations could be favored over a lump-sum bonus. Consequently, the most effective strategy could be to offer a choice of reward, such as a monetary bonus or the opportunity to spend some time away from the office.
4. Offer Feedback
An employee is more likely to engage with a referral program if you keep him up to date with the status of his referral, Business News Daily explained. Even if you decide not to hire a referred candidate, polite communication between all parties is advised, so as to demonstrate that the employee’s efforts in the referral process were appreciated.
Developing a strong employee referral program policy will make it easier for employees to recommend qualified candidates for positions. By implementing these four employee referral program ideas, you’ll be able to hire new talent while maintaining a happy workplace.
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