It turns out, employee referrals ramp up faster and have better retention. Not surprising that these hires fit into your company culture faster and want to stay longer, considering they are already connected to your current employees! In addition to all this, employee referrals often come at a cheaper cost-per-hire.
Wait, we could save money and hire a better-fit employee? Tell me more!
On average, 25% of company hires are a result of employee referrals. The best rate I have personally seen is 50%. What is your hire rate resulting from employee referrals?
Here are some tips on how to increase those valuable referrals:
- Always Reward. Reward employees for simply participating in your referral program (not just resulting in final hires). For example, if employees have referred 3 or more candidates, perhaps you enter them into a lottery for a prize or free vacation day.
- Empower Employees. Make sure your team understands that by referring candidates from their network, they are more empowered to have a say in who becomes their future colleagues and how the company culture can grow and improve (rather than having those decisions imposed upon them).
- Cash is not always king. Charitable donations or gifts can sometimes work better in motivating participation. You could even appeal to everyone’s competitive side. Try a company-wide contest for higher participation.
- Leverage the references of your candidates. At Checkster, we have seen for best-in-class customers, the ability to generate up to 5 passive referrals per candidate! And they’re easier to collect than you think. Listen here for more.