Employee referrals are clearly the best way to Hire. I know you think we are probably biased. You are right. We are biased and for good reason. In fact, here are 8 good reasons why we are biased.
1. Get more relevant profiles
Employees will very unlikely refer somebody who has used an ERP system for a ERP developer position. Relevance is hard to get. Most job portals fail in providing relevant profiles and that honestly is heart burn.
2. Employee Referrals convert more
Employee referrals have higher conversions. It is a combination of various reasons – better relevance, better candidates, better results. Employees actually only refer when they like working with the other person.
3. Ownership of candidates is more
The chances of a candidate absconding from your process is significantly reduced if he has been referred by an employee. That is one impressive reason especially where professionalism is hard to find.
4. New hire has a lunch buddy
This is my personal favorite. When a hire joins the organization, he has somebody on day 1 to go to lunch with. Why is this important? Well, majority of human beings struggle to build relationships quickly. This means that if you have a friend looking out for you, you are likely to find out what to do and more importantly, what NOT to do. The chances of your hire succeeding and staying with the company increase as a result.
5. You spend less
Employee referral pay outs are significantly lesser than external recruiting agency payouts. Additionally, it helps you distribute within the organization resulting in the next benefit
6. Your organization retention improves
If you can encourage employee referrals in the right manner, it is practically possible for you to get on a downward spiral of attrition. Existing Employees stay longer due to increased referral pay outs. Your recruiting spend can now be diverted to better employee engagement activities and drive more good will.
7. You spend less time and effort in this sourcing channel
The time to close a position is known to be least in employee referrals. This means it takes me less effort to get to shortlist, interview, hire and close a candidate. Isn't that sweet?
8. Greater cause inspires a great recruiting culture
Employees actually contribute to growing the organization in real tangible terms. This is especially true in services sector where People are the greatest assets for an organization. Employees that refer successfully feel more attached to the organization and become brand advocates to the external world.
We are big believers in Employee Referrals as a sourcing channel. What benefits do you strongly identify with based on your organization's employee referral program? Let us know your thoughts and comments below.