Employee Referral

What is an employee referral?

An employee referral is a recruitment strategy where a company encourages its existing employees to refer people they know for job openings. 

Essentially, this referral program leverages an organization's current workforce to identify and recommend qualified candidates for open positions. 

This approach can be particularly effective since current employees have an understanding of the company culture and are likely to refer individuals who are a good fit.

How does it work?

To implement an employee referral program, a company can start by creating a formal process for it. 

This process can include guidelines for referrals, such as what types of positions are eligible for referral, how to submit a referral, and the timeline for the referral process.

Once a company has established the referral program, they can promote it to their employees. This can be done through company newsletters, meetings, or email reminders. Companies can also offer incentives to employees who make successful referrals, such as a bonus or time off.

When an employee refers a candidate, the company's HR team will evaluate the candidate's qualifications and suitability for the position. 

If the candidate is deemed suitable, they will be invited to apply for the position, and their application will be fast-tracked. 

Referral candidates are often given special consideration because they come highly recommended by current employees.

What are the benefits of employee referrals?

There are many benefits to implementing an employee referral program, including:

• Faster hiring process: Referral candidates are pre-screened, which means the hiring process can move faster than usual.
  
• Improved candidate quality: Referred candidates are more likely to be a good fit for the company culture and the job requirements.
  
• Cost savings: Employee referrals can save companies money on recruitment costs, such as advertising and agency fees.
  
• Employee engagement: Employee referral programs can boost employee engagement by making employees feel more involved in the hiring process and the success of the company.
  
• Retention: Referral hires are more likely to stay with the company longer than non-referral hires, which can reduce employee turnover.
  

Employee referral programs are a cost-effective and efficient way to recruit new employees. With the right process and incentives in place, companies can successfully implement a program and enjoy the many benefits it brings.