There are a lot of stunning statistics that support the use of referral programs for hiring. People who are referred are four times more likely to get hired than other recruiting sources. 45% of referrals stay at the company for four or more years. It costs less than other hiring sources and yields a significant investment return. A good employee referral program is a goldmine that will give your business an opportunity to remain competitive in your industry. Here are a few of the benefits you can see in your company.
Improves the Quality of Hire
The quality of hire is an elusive metric that can be difficult to measure. But bringing someone on board through a referral can improve the overall experience for everyone. Your employees will not risk their reputation by referring someone they don’t believe will excel in the role, and you should trust your team.
Encourages a Better Employee Brand
Your employee brand is the way that outside candidates view your company. It’s influenced by your current employee experience, online presence, and how you treat incoming applicants. When your team is excited enough to send their connections through your pipeline, it will only increase your employee brand for the entire company.
Increases Employee Engagement
Referral programs work best when there is a monetary reward for suggesting candidates. You want your team to feel like they have ownership of the process, and they will be very invested when they have an opportunity to improve the company by referring someone great. You can tie the payment to retention and performance by not paying until someone has worked for 30 or 60 days.
Positively Impacts Retention Rates
As we mentioned earlier, retention rates are significant with referred employees. They are 42% more likely to remain at a company for four years or longer. This is due to many reasons, but much of it has to do with their connection to the company, overall engagement, and onboarding. By hiring referrals, you can improve the success of your company for a long time.
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