Did you know that having an employee referral program can help you to get more skilled employees who will stay at your organization longer and will be a better fit for your company culture? According to Dr. John Sullivan, “88% of employers said that referrals are the #1 best source for above-average applicants.” In this article, we discuss how an employee referral program can benefit your business.

Hiring Employees Faster

The process for hiring employees who have been referred is generally shorter than the process for hiring employees that applied online through the company website or through a job website. This is because, when hiring referred candidates, you don’t need to write and post job ads, sort through countless resumes, and screen a large number of candidates. The ability to hire employees more quickly can be especially important for jobs for which there are not many qualified candidates available in the job market. A faster hiring time also reduces hiring costs and helps you to spend less time on hiring and more time on other parts of your business.

Creating a Great Company Culture

A Forbes article on company culture notes that “One study found that 84% of recruiters surveyed agree that cultural fit — not the time and cost to hire for a role — is one of the most important recruitment factors, and nine out of 10 have reported passing on applicants who didn’t feel aligned with their companies’ cultures.” It has also been found that those who fit into an organization well culturally tend to stay longer and are more satisfied. In addition, when an employee does not work out, it is more often due to cultural fit rather than the skills of the employee.

Set Up a Process

Set up a clear process for your employee referral system that is easy to follow and create a written policy for it. This should include your terms for how employees can be referred, what constitutes a successful referral, and what incentive an employee will receive for a successful referral. You can also create an online tracking system.

Get Creative with Incentives

Monetary rewards are the most popular way to give an incentive to employees who refer job candidates. However, this is not the only way to compensate them. You can get creative by offering other benefits, such as trips and events.

Track Your Progress

Track and analyze the progress of your referral program. For example, you can compare the number of successful hires through referral compared to other methods of hiring, such as job boards. You can also track retention rates, speed to hire, and the cost to hire.

A coach can help you to create an effective referral program for your company. Get in touch today!