If you’re looking to hire some new people in your team, and you want someone who’s been recommended by a person you already trust, you should consider implementing an employee referral program in your company. What does this program imply? Well, it implies current employees recommending relatives, friends, or colleagues who they think would be right for the job. This can be both a great source of employees for you, and a source of rewards for those employees whose recommendations are successful. Today, we’re going to look at the main benefits of an employee referral program.
5 Benefits of an Employee Referral Program to Keep in Mind
1. It Saves You Time
The process of looking for new employees can be a rather long and arduous one. Employee referral programs are more effective, and they can help you focus on things which are higher-priority instead. Such programs cut back significantly the time you would normally spend on the recruiting and hiring processes. You won’t have to go through all the steps anymore, and just go straight to interviewing the person.
2. It Saves You Money
It’s no secret that recruiting and hiring processes don’t only take a lot of time, but also quite a lot of money. With an employee referral program, you won’t be spending money on advertising the job anymore, because your employees will take care of that. You won’t need outside recruiters anymore either, since your employees know a lot of things about your company and the company’s culture. Even if you consider the rewards you’ll provide employees with after a successful hire, you’ll still be paying less.
3. It Creates a Nice Working Environment
When you use current employees to hire new people, both groups have reasons to be satisfied with your company. Your current employees will feel proud that they’ve contributed to the development of the company, and be aware of the fact that you value and trust their opinion. Plus, they’ll also get a reward, so all the more reason to feel satisfied. Future employees will start work feeling engaged and motivated, not to mention comfortable. That’s because they already know someone in the company, someone they can turn to for guidance.
4. It Brings You High-Quality Employees
Think about it, people who already work for you know what to look for in a new employee. As a result, they’ll probably only recommend people who have the necessary skills for the job and also align with the company culture. This means you’re more likely to hire high-quality employees than if you were to go through the recruiting process yourself.
5. It Helps You Keep Employees Longer
According to a study conducted by JobVite, 46 percent of the people who were hired because of a referral spent more than one year at the company, while the percentage of people hired using career sites who did the same was much lower (33 percent). Since all companies are looking for employees whom they can keep for a longer period of time, referrals are a great way to hire.
We hope these employee referral program benefits have persuaded you to give this strategy a shot.
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