According to Jerome Ternynck, the CEO of SmartRecruiters, you are already connected to every single candidate you will hire next year. He believes that because we have unlimited leads via our social connections, the potential to source incredible candidates via our “employees’ network” is unprecedented. The idea being that each of your employees has a distinct network of talented friends, former work colleagues and family members, and you can tap into it when looking to fill open positions within your company at various stages of the recruitment process.
Your job as a recruiter is to “connect the dots” between the best potential employee for the job and your current staff members. And the best way to do that is by turning every employee in your firm in to a recruiter/sourcer, by giving them the opportunity to be apart of the recruiting process, and determining if you can leverage any existing relationships between potential candidates and your current employees.
Benefits of Hiring Referrals
- 1 out of every 5 referrals gets hired.
- Referrals are the No.1 source for diversity hires.
- The average retention rate of referrals is 46% versus 33% for career site hires.
- Referrals are the highest quality hire – they perform the best on the job when compared to other recruiting sources.
- Referrals are a better cultural fit, as they are pre-vetted by people familiar with how your company work.
Best Practice for Encouraging Referrals
- Ensure participation in the program is easy. 50% of employees will join on the first day if sign-up is simple and straightforward.
- Provide recognition for employees who refer potential candidates.
- 48% of employees say a reward would motivate them to participate in a referral program.
- Cash rewards ($2,500-$5,000) are the No.1 incentive for participation in referral programs.
- That said, 80% of companies are also using non-cash rewards e.g. public recognition, product rewards, holidays etc., to encourage referral program participation.
- Implement gamification to encourage participation in employee referral programs. 58% of employees believe it’s important for companies to be more fun and playful like this.