An employee referral is when a company’s existing employee recommends a job candidate from their networks. Employee referral programs are an internal form of recruitment, and companies that implement this recruitment strategy will typically provide an employee referral reward – to the employee who is successful in referring the right individual for a position.
Employee referral programs are one of the most efficient hiring methods. Through referrals, employers can reduce the time spent on the hiring process and the cost per hire. This post explores the benefits that a business can receive from using an employee referral program in their business, and how to establish one in their organization.
What are the benefits of an employee referral program?
Increases the chances of a quality hire
Since the potential candidate is being referred by employees who understand the company culture and vision, they can factor in those qualities when making a referral. It can be difficult for employers to accurately gauge how a person will fit into a team through just an application and interview.
Furthermore, through employee referrals, employers gain access to passive job seekers. This candidate group is one of the hardest for employers to market to. Employee referrals can be a very effective way of breaking into that candidate segment.
Builds the company’s brand image
For many businesses, creating a brand image that attracts top talent can require ample time and financial support. But what if employees were the ones carrying the message? Job seekers are much more likely to believe the words of a fellow worker, than a business.
A key takeaway for employers is, create an amazing work environment for your employees. When people see or hear about staff having a great experience in their workplace, they’ll want the same experience!
Improves the company’s employee retention rate
Through employee referrals, a business can increase its chance of hiring an individual that not only has the right skills but is a proper fit for the organization. How well an employee fits into an organization is a major factor in how long they will stay with the company.
Candidates that have the opportunity to talk with a current employee about the work culture will have a better understanding of how they will fit into the company than candidates just applying online to a job listing.
Are you looking to set up an employee referral program in your business?
At Peninsula Canada, we specialize in everything HR and health & safety. Whether you want expert advice on implementing an employee referral program in your business or you have other HR and health & safety questions, our 24/7 advice line is here to support you. Call us today: 1(833)247-3652.