Should Your Business Have a Employee Referral Program?
Tap Current Employees to Find Great Talent and Reduce Recruitment Costs
Employees. You trust them with just about every aspect of your company. They’re the public face of your business that greets your customers each morning, and they are the stewards of your sales receipts until the money is safely deposited in the in bank each night. They warn you of problems and suggest excellent opportunities for change and growth. Indeed, a good employee is the lifeblood of any firm.
Therefore, it makes sense to garner the knowledge of those same employees and harness their contacts to find even more great employees. Not only does recruiting, based upon the referrals of current employees increase the likelihood that prospective candidates will prove a likely corporate fit, but tapping into an employee based network of contacts can seriously reduce recruitment costs.
It’s common knowledge that you trust someone you know more than you do a complete stranger. Equally obviously, it’s more likely that you can trust the credentials of someone who has been vouchsafed for by a trusted employer over the curricula vitae of someone who happened to wander in off the street.
Developing an effective employee referral system has the potential to turbo-charge your recruitment efforts at a fraction of the cost of other recruitment methods. You understand that in much the same way that you must give your employees the tools to succeed during the course of their regular workday, so too must you give them the tools to excel as roving ambassadors of your Human Resource Department.
For the ultimate tool in recruitment-based technology, companies are increasingly turning to mobile employee referral applications to allow employees the ability to share available jobs, identify a worthy pool of candidates, and have the capability of discretely vouching for the qualifications of any applicant who’s in the employment pipeline.
With the technology that is available, employee referral applications have the ability to manage a monthly referral program leader board, track and report on applicants and hires, and communicate any associated rewards directly to the referring employee.
Employee referral programs lead to an improved candidate pool, and the right “fit” of potential hires assures that retention levels remain high when they become actual employees. There is a reason why we go with known qualities; it is because they are known. Tapping into the verifiable social networks of existing employees is a truly excellent way to expand your applicant pool.
Attracting, hiring, and training new employees is perhaps one of the most costly, time consuming efforts you will engage in as an entrepreneur, and rationalizing that process through a qualified employee referral program is increasingly seen as a key component to reducing overall recruitment costs.