When it comes to recruiting and sourcing for candidates, there is something you can add to this mix; an employee referral program (ERP). There have been several surveys that imply that implementing a robust ERP in your recruiting process increases employee satisfaction when it comes to retention. Forty-six % of employees hired via a referral stay with you for more than a year, and 47% will stay more than three years*.
Not only that, but they are often the most productive employees, and tend to be an excellent fit for your company, because these candidates have been vetted by your current employees, allowing them to get an inside look before committing to work for you.
Some positions, of course, have a higher likelihood of building a viable candidate pool. Highly skilled positions such as management and executive do not have a good success rate for this type of recruiting. However, the positions on the other hand that have great success are entry-level, skilled labor, customer service (similar personality types and interest), and general office or support.
It is essential however to make this work for your organization that you recognize those employees who bring you the referrals. Doing so will ensure and encourage future interest in sharing more referrals. Cash rewards do the trick! Offer a referral bonus at the 90 days from hire mark, or for higher bonuses, split half and half. Half right away, and the second half at the 90 or the 120-day mark.
Many employees will stay away from ERP’s if the program is not consistent, or you don’t actually follow up with the reward system.
If you need help in determining how to shape your referral program, as well as a way to create a strategic plan to get everyone on board, just ask us! EthosHCS is here to help.