Finding the right talent for the niche job role is the crux of the matter for an organisation. Nowadays the recruitment strategy is a more data-driven process that optimises the talent, and experience of the candidates by eradicating irrelevant applications. However, employee referral programs come to the scene in terms of reducing the cost and budget of the recruitment process and finding effective talents without spending money on job advertising.
What is an employee referral program?
Employee referral is one of the most effective recruiting strategies that help the recruiters to encourage the current employees to refer qualified potential candidates for the job rules in the organisation. It’s a well-known strategy where the organisation asks their employees to recommend candidates from their networks. Employee referral is effective to source candidates through the personal connection of the employees. It reduces the cost and time of the recruiting process and brings down the tiresome work of sourcing and screening profiles. It has been found that referred candidates are more skilled compared to the general applicants from the job portals and online platforms. The referred candidates are more likely to negotiate and accept offers as they already know about the organisation’s cultural values from the existing employees.
Benefits of employee referral program
Enriching the employee brand
Referral programs help to enrich the employee brand of your organisation with word of mouth. It has been seen that 75% of the candidates go through the company brand before applying for the position. It can also be said that job seekers trust the testimonials of their employees more than the recruiters or CEO of the company. It is one of the most effective ways to attract talent for the job openings and make a talent pool faster way. In fact, the newly hired employees through the referral programs add 25% more value to the company than those sourced through The other channels.
Reducing cost and time
Employee referral is dependent on word-of-mouth marketing that reduces the cost of the recruiting process. Recruiters spend a lot of money on job advertisements on many recruitment channels. Here comes employee referral programs that are cost-effective in terms of attracting and hiring candidates. If the organisation incentivises existing employees for referrals, it still saves money.
Hiring qualified candidates
The employee referral program is an internal method to attract and onboard employees. It helps to hire more qualified candidates than other platforms as your existing employees understand the requirements for the vacant post. That’s why the employee referral is more effective in terms of finding the right match for the job role. As per the report, 88% of employees said that most of the qualified candidates and hired through referrals (Yello)
Increasing ROI
Director Employees Association recruiting strength survey says that employee referral helps to increase the ROI. According to this report, 82% of employees say that referrals generate the highest ROI”.
Boosting employee morale
When your company values your referrals and chooses them for the interview process you feel a sense of belonging. Moreover, when they are hired through the referrals, you feel an achievement that boosts your morale. It helps to foster a positive environment that enhances the company culture.
