Finding the right person for an open role is never an easy task. Companies can go all-in on multiple fronts – social media, personal networking, branded ads and more – and still not find who they need. While every tool in a recruiting toolbox is important and necessary, they are not always enough. So, what else can you be doing to find the right match? Data shows that referrals from current employees almost always result in the best hires, with referred employees performing better and staying longer than employees sourced through other methods.
Here are just a few other reasons why you should invest in an employee referral program.
Referrals Keep Your Pipeline Full
The best way to fill roles quickly is to have a pipeline of passive candidates. Every HR professional and recruiter knows just how difficult it can be to build connections with that passive talent. That’s where employee referrals can help.
Referring employees know that their reputation is on the line on both ends of the spectrum – with their colleagues and with their company. That means they only refer people who are qualified, aligned and positioned to do well, and it’s why referrals are often the best candidates you will see. And because referrals are of such high quality, they have the highest conversion rate of any sourcing method.
Referred New Hires Are Performers
Because they are such high-quality candidates, referred employees take less time to onboard, train and ramp-up to full productivity than cold hires. Referred employees are also almost always a strong cultural fit because their colleague gave them the lay of the land before applying. This alignment and speed-to-productivity yields better performance, happier employees and greater job satisfaction.
Referral Programs Improve Engagement and Morale
The key component of an effective referral program is a monetary bonus to the referring employee. Companies may offer a bonus after the new hire hits a milestone, or they may split the bonus into two payments – one made at the time of hire and the remainder after a milestone.
Bonuses boost engagement and morale because they give employees real incentives to refer highly qualified candidates with long-term staying potential, and those employees feel their efforts are noticed and rewarded. If you think you can’t afford bonuses, think again. The money saved on recruiting and onboarding are usually more than enough to cover a check.
Are You Ready To Implement Employee Referrals?
The benefits of referral programs are undeniable, but it can take months to build a program that yields results. If you need effective referrals today, partner with an expert staffing and recruiting company that has a strong pipeline of talent and a referral program in place. To start reaping the benefits of an employee referral program, Employment Professionals Canada can help. Contact us online or call us at 1-800-842-0421 today.