When it comes to recruiting, the word of mouth method seems like a long shot, but it is, in fact, the best method. Why? Because the entire process from advertising an open position and sending hundreds if not thousands of applications through a sieve to shortlist potential candidates to offering the job to the perfect person calls for an enormous amount of work. Even if you’re one of the best employers in the game, an easier and fool-proof recruitment strategy can have many perks.
That said, if you feel like you’re working around the clock but still not finding the perfect match for a certain position, these benefits will help you revamp your recruiting strategy.
What exactly is an employee referral program?
A long-existing recruiting strategy, i.e. an employee referral program, is a way of motivating your current employees to refer qualified hires to positions in your organization. By doing so, your current employees receive rewards, much like tokens of appreciation.
For referring trusted workers that last a certain period of time in your company and increasing the efficiency of your workplace, they receive referral rewards/bonuses ranging from $1,000 to $5,000.
Benefits of Implementing an Employee Referral Program
Recruiting through an employee referral program can save your time, money, and energy.
According to Glassdoor, as of 2014, the average length of the hiring process in the USA was 23 days. Imagine what it is like in 2022? In this hectic and fast-paced world, wasting almost a month on recruiting is inefficient. But when your current employees introduce new people to your company, you can cut your hiring time in half.
With no extra screening steps, negotiating, etc., you’ll have more time to build a better work environment for your employees.
Employee Referral Programs are cost-effective.
Recruiting new talent is quite expensive. Advertising job openings and paying for marketing tasks alone require top dollar. However, your employees can advertise your job openings using simple methods that will not require huge sums of money. Compared to the amount you’ll be spending on recruiting and traditional advertising, the referral bonus you’d pay your employee for successful hires is a fraction. The return on investment (ROI) is substantial.
It helps you find the best fit.
Your current employees’ professional networks are probably overflowing with similar-skilled candidates, so the probability of landing a suitable employee through this path compared to usual advertising methods is pretty high.
Your existing workers know the exact job requirements. They can sense similar skills and are more likely to bring the best fit for the company.
It increases employee retention.
Employee referrals bring recruits that tend to stay with the company for years, more than the ones that are hired through job boards and recruitment agencies.
Unlike paid advertisements, the impression your employees create is genuine and based on their own experiences, so job seekers step in with a clear understanding of the company.
This inviting culture in your company can elevate the percentage of employee retention.
It creates a hospitable and engaging culture in the office.
When you accept a referred recruit through one of your current employees, they feel more valued and trusted, not to mention, rewarded. That being the case, they’ll continue to work hard for the growth of your company.
Additionally, the new recruits will be rather engaged in their job from day one and won’t feel alienated, due to more familiar faces being around them. This will reinforce a positive work environment for everyone.
In a nutshell…
As a professional, it is important to know that your workforce is the key. They’re already making your company what it is, so don’t feel indecisive about using their strength to pull more one-of-a-kind people your way.