There are several different aspects involved when structuring your hiring strategy. Two of the most important being recruiting for the right culture fit and ultimately ensuring you have the best hiring pool. Although there are many ways to achieve this including better hiring within, we've seen great results with adding employee referrals as a pillar in hiring strategies.
There are many benefits to consider with employee referrals. Here are the top 3 that can have the greatest impact on your hiring and retention results!
1. Company Branding
A company's greatest asset is their people. Your employees are walking advertisements for your brand and product. There are many things candidates consider in today's job market. More often than not a candidate will take a lower paying job for a company or product they are passionate about, versus other competitive offers. Also, today's candidates always do their research. With so many sites like Glassdoor, Google Reviews, even Yelp; employees want to be heard and candidates are listening!
According to a study by CareerArc, 75% of candidates consider the brand's reputation BEFORE applying. Think about it. If you had employees sharing with their friends, colleagues, family about their (hopefully) great experience at your company, most of the recruiting is getting done for you.
This hopefully happens naturally, but sometimes if an incentive is in place, an employee who might not be so open at first might start considering people in their network who would be a good fit! If you can encourage a healthy company culture, employees will be your advocates. However this is also a double-edged sword, watch out. They'll also be sure to share anything negative!
2. Increased Retention and Quality
Oftentimes when employers implement an employee referral strategy they want more employees like the ones they have. It's human nature to have friends, connections or acquaintances who share our similar qualities and characteristics we possess. Odds are if you're happy with the success of your current team, they'll refer people equally as great as themselves.
Also, employees are likely to feel that their reputation is on the line. After all, nobody wants to be that person who referred the consistently late or poor performing employee. Additionally, it's been statistically shown that employees who are referred are up to 23% less likely to quit compared to other hires!
3. Better Company Culture + Increased Engagement
I know, I know you're always hearing about company culture and how important it is to your business but hear me out. Strong company cultures have more productive and happier employees.
Happier employees drive many benefits but when your employees have a strong understanding and connection with your company culture they will most likely send referrals with the same values and understandings.
An employee referral program can help keep engagement high. When employees are engaged, productivity is high and goals are being met. An estimated $550 billion is lost annually due to lack of productivity. Although there might be a variety of reasons for low productivity, company culture and employee productivity are correlated.
With an employee referral program employees are more engaged and feel like they are playing a role in the future success of the company, and have an increased responsibility and role within the organization. Engaged employees want to grow and thrive.
Partnering an employee referral program with your succession plan creates transparency, trust, and appreciation. Resulting in internal motivation and increased engagement.
Getting your employee referral program started doesn't have to be such a challenge. Schedule a free chat with our team to see how you can get yours started. Remember the initial effort will result in better hires, increased branding awareness, and a thriving company culture!
So what are you waiting for? Let's get your program set up, can't wait to chat!