Think you’re an employee referral rock star? Take our quiz to find out!
Companies prefer hiring candidates who answer job ads because it shows that they’re currently open to taking a new job.
Companies hire employee referrals about two-thirds of the time as compared to non-referral candidates. This is because referrals have an average retention rate of 46%, compared to only 33% from career sites. They are also easier to on-board, at 29 days, compared to those from career sites (55 days) and job boards (39 days).
Employees don’t like referring people because they want to keep all the company benefits all to themselves.
Sharing is caring when it comes to employee referrals. In fact, about 60% of employees have referred one friend or colleague to a vacancy in the company. They love referring so much that 38% of employees have even referred multiple applicants for vacant jobs. If employees love their jobs, they would be more than happy to invite other people into the fold, so they, too, can experience the same kind of fulfillment, current staff members get from their company.
You should prioritize entry-level referrals because these people do the small things that keep the ball rolling
Instead of entry-level candidates, you should prioritize top-level executives first because they can bring in the highest business impact in the organization. The good news is, referred executives get hired 91% of the time, as opposed to entry level candidates (53%).
Every employee referral program should have a form of reward for top referrers
You’re asking your employees to do a task (refer candidates) that’s on top of their normal work responsibilities. As such, you should reward their efforts with an incentive that could either be financial or non-financial. This will encourage them to work harder and refer more candidates.
Employee referral programs are a top source of hires or most companies
According to a Jobvite study, employee referral conversion rates account for up to 40%, while other sources only reach up to 7%. This means referrals get hired more than their non-referral counterparts from career sites and job ads.
Employee referral programs are just for big companies.
Employee referral programs are especially helpful for startups who have limited budget for hiring. Startups will spend about $4,285 to well over $18,000 per hire using traditional recruitment, while recruitment with referral programs only costs about $1,000 per hire.
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Want to know more about employee referral programs? Contact Firstbird today.