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Why You Should Treasure an Employee Referral

Post by:The Reserves Network September 25, 2019

Every hiring manager knows just how challenging it is to find and keep talent in today’s market. They are pulling out all the stops when it comes to recruiting methods—social media, personal networking, branded ads, sponsored events, etc. While these are all important tools, one of the most effective methods of recruiting in any market is a referral program. Referrals from current employees result in the best hires, with referred employees performing better and staying longer than employees sourced through traditional means.

Over 25% of the candidates hired by each year are referred to us. It’s an honor when candidates choose to work for us because of a recommendation by a current employee.

The Undeniable Benefits of Employee Referrals

Who knows talented people? Other talented people. If you want great candidates to show up at your doorstep, one of the best places to turn is to your existing employees. There are a host of benefits that come with a formal employee referral program, including:

  • Closing the deal: Employee referrals typically only account for a mere 7% of all applicants, they close nearly 40% of the time.
  • Access to specialized skills: When you need unique or high-level skills, the talent pool can be limited. However, your employees have strong connections in their fields and know other professionals.
  • Cultural alignment: No one knows your culture better than your employees. They can refer people who they think would thrive in that culture.
  • High-quality candidates: Employees know that their own reputation is on the line when making a referral, making it more likely they’ll refer people with the skills, work ethic and personality to succeed.
  • Improved efficiency: Since referral programs generate fewer weak candidates, HR and management waste far less time on candidates who likely won’t be a good fit.
  • Better employee retention: Referred employees work longer at an organization than traditional hires and report higher job satisfaction.

The Value of a Formal Referral Program

Asking employees for referrals is nice, but a formalized referral program that incentivizes employees for recommending great employees helps you fill your pipeline. Offering a bonus for successful placements encourages people to actually make strong recommendations.

A thoughtfully developed, rewards-based program can pay dividends in lowering cost-to-hire, shortening time-to-hire and improving long-term retention rates. As a bonus, it boosts morale with your existing team and helps cultivate a strong culture.

What If You Need Referrals Today?

It can take a while to build a solid referral program. If you need excellent referrals today, it pays to partner with a staffing expert. If you are looking to improve the quality of your hires while controlling costs,  contact the recruiters of The Reserves Network today.

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      People-centered and purpose-driven, TRN offers access to top jobs as well as a true career partnership.
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