Employee referral programs are growing in popularity with 63% of companies having an active formal program, and it’s easy to see why. Not only do these businesses see more new hires, but also greater quality in new hires than those found on an employment site or at a job fair. The benefits of employee referrals are strong and wide reaching. Learn more about how an employee referral program can boost your business!
When an employee refers someone, they are doing so with an intimate knowledge of your business’ culture and needs. They’ll be able to quickly tell if someone will perform well and fit in. The referring employee will also share their knowledge of your business with the referred new hire, giving them an advantage from day one on traditional new hires.
A referred hire already has a connection to the company through the referrer and is likely to fit in with the company culture, meaning they tend to stay longer. Also, referred employees tend to have higher job satisfaction as they were hand-picked for the company. Not only does the referred hire stay longer, but the referring employee is also likely to stay longer. This is essential in businesses with high employee turnover rates.
On average, each of your employees have a social media reach of 150 people or more. Enabling employees to advocate for your business means they are reaching a wider and more targeted audience.
According to Jobvite, it can take an average of 55 days to hire a traditional candidate as opposed to an average of 29 days to hire a referred candidate. When an employee refers a candidate, you are able to cut through a lot of the processes that go into traditional hiring, such as writing a job posting, reviewing resumes, working with recruiters, and waiting for candidates to find you. Cutting down on hiring time saves employers money and stress.
The data doesn’t lie— employee referrals are a faster, more cost-effective way to find quality members for your team. When your employees are enabled to advocate for your business, everyone wins. Ready to get started? Click here to give your employees access to the tools they need to succeed!