Have you ever conducted multiple hiring processes using various methods but still ended up with no suitable candidate? Well, you are not alone. This is a common challenge most hiring managers or employers go through. Employee referrals have proven beneficial to many organizations and have become one of the most preferred choices. With an employee referral program, you might just find the right talent that suits your organizational needs. 

A Complete Guide to Employee Referral Program

In this employee referrals guide, you will have a better understanding of what an employee referral program is, what its entails, and the importance to your organization.  Most employers do not consider using referrals to hire talent, maybe because they haven’t given it a thought. You will find yourself spending a lot of money to find a candidate that you could have just gotten through an employee referral.  One job position could attract thousands of applicants with the right qualifications. This requires time and money sifting through the deluge in the hope of finding the right potential employee. Having the proper qualification does not automatically mean that an individual will be the right fit.  Most employees foster relationships with other individuals who are in the same field as they are. This creates an exciting resource for the human resource manager, known as an employee referral.

What is an employee referral?

An employee referral is a method for recruiting individuals internally. This method calls for employers to ask employees for recommendations on candidates with the right talents. Evaluations are done to see whether these candidates can fill in an available position. The employee referral can strengthen the brand of the employer. This works in two ways, by encouraging employees to share their workplace, and by getting recruits who trust in what the organisation has to offer. There are several benefits of employee referral as a means to recruit positions including: -

1. Reaching customers who have excellent skills. These may be passive candidates who would not actively be looking for jobs.
2. Saving time and resources in the search process.
3. Elevating the rate of retention by finding the perfect fit.
4. Creating an environment for employees to actively engage in the company.
5. Opportunities for staff appreciation and celebration are created.

Employee Referral Programs

Employee referrals can have structure through employee referral programs. These programs form a part of the recruiting strategy and follow several stages. To begin with, an employee referral program is a tool for the beginning of the hiring process before any other strategies. Then, employees need education on how the referral programs work. This should include the way that referrals are done, how to submit them, as well as the requirements for the role to be fulfilled. For participation in the employee referral program, employees should have motivation for the rewards. The employee referral rewards can be given as bonuses when the right candidate is found and given a job in the organisation. In addition, a second bonus can also be given should the new employee remain with the organisation for at least six months. There are those who will provide the details for potential candidates, though these candidates may not get the position. For these employees, rewards could be smaller than bonuses. Items under consideration may include gift cards, additional holiday time or even tickets to popular events. Statistics show that employees recruited through employee referrals are retained with the company for longer periods of time. Employee retention rate should be key, with a clear system set in place for evaluations. The importance of employee referral for companies of all sizes should not be underestimated. However, it needs to have a good structure in place to ensure that it is not misused. Employee referral programs with clear outlines on expectations should be developed. There are digital applications and programs that can be referred to which make the entire process seamless.