Employee referrals are something which have really begun to take off among many companies, while many others are still reluctant to invest in them.
Often this reluctance is a question of both time and money, but these same factors are also the two main reasons to invest in employee referrals. Whether or not you area already familiar with the idea, the following text explains why you ought to start investing in employee referrals!
Before, the majority of all new hires began with a job advertisement. Over the course of just a few years, there has been a marked increase in the number of hires from other sources. Today, less and less recruitment happens through job advertisements, while outreach recruitment (searching/headhunting) and employee referrals are both on the rise. A wide range of new tools has changed how we recruit.
But why specifically should companies work more with employee referrals?
First of all, because 92% consider that the best hires they ever made were through recommendations. Recommended candidates are generally 25% more productive and stay at the company 30% longer than employees hired through job advertisements. In addition, the recruitment process takes on average less than half the time compared with a traditional ad-based recruitment process. This is likely because one out of every ten hired via a tool such as irecommend, is recommended by an employee who is already at the company. The corresponding number in traditional ad-based recruitment is more like one out of every hundred. (HR Technologist, 2018).
In addition to a more efficient selection process, there are many other reasons why companies choose to adopt a targeted approach to employee recommendations:
You may find it makes more sense financially to reward your employees for referring relevant candidates from their own networks than to pay headhunters or similar in the case of specific positions for which a traditional ad-based recruitment process would not be sufficient.
Instead of waiting for suitable candidates to trickle in through your application forms, you can also access candidates in your employee networks who your employees have already assessed as being a good match for the position. This can save you a lot of time.
Giving your employees a say in who their new colleague should be is a great way to boost their engagement.
The likelihood that a candidate will match the existing culture at your company rises considerably when the person is referred and recommended by an existing member of staff. This is because your employee will have observed in advance that the candidate makes a good match. And if there is anyone who knows your company culture like the back of their hand, it is your existing employees.
Employee referrals are being used more and more often as a central part of a company employer branding strategies. If you remember to involve your employees by giving them a credible voice in the selection of candidates, not only will you see much greater quality in your candidate flow, but you will also demonstrate to potential and existing employees that you trust your staff and value their judgement. This strengthens your employer brand.
Learn more about lean recruitment through employee referrals here.