To have a successful work environment, your new hires not only need to fit in perfectly with your office culture but your existing crew as well.
So when looking for new prospective employees, maybe the best place to look and most effective resource is your already conscientious and contented personnel…what a powerful tool this could be!
An employee referral program can considerably strengthen your company’s talent pool, especially since your current employees have a clear understanding of what you expect.
There are many benefits to a well-organized employee referral program:
- Potential employees will most likely have the skills and personality you are looking for.
- The initial screening process is shorter, making up the whole process quicker.
- The recruiting method is less expensive for the company.
- 46 percent of employee referrals stay for three years or more, while only 14 percent of those hired from outside the company stay.
However, to get a steady and dependable contribution of the best employee referrals, you will want more than just a referral program, you want to develop a culture of recruitment in your organization.
Let your staff know that your company is always open to the best talent, and that referrals are always encouraged. When your workforce doubles as executive recruiters your potential talent pool is always primed with the best candidates.
Three factors will turn your referral program into a recruitment culture:
Motivating matters: Developing a system to reward or recognize employees for their efforts will keep people encouraged and create more discussion about the program.
A simple cash reward is an excellent and effective way to motivate employees. The amount should be fair for your industry and company size. Also consider enticing referral quality and retention by giving a second award after a candidate has worked 90 or 180 days.
If cash isn’t in the budget there are other options such as…a lunch, paid time off and recognition.
Ease of Use: Simplify the process as much as possible. If employees have to jump through hoops or fill out a lot of paperwork to refer someone, it won’t matter how great the potential reward, they won’t want to do it.
A metrics-driven policy: You need to monitor and measure your system so you can keep it strong and growing. Some metrics to think about including are: Who is sending you the most or the best referrals? Who is trying the hardest to send referrals even if they haven’t had any success in developing into a new hire? How much are you spending on hires? How does the quality of your referral hires compare to other hires? Which referrals turn into hires?
From sourcing to screening, interviewing to offering, enlisting the best people for your business is a skill that you will polish and perfect over time.
When determining whether a probable applicant is a good fit for your organization, the employees themselves might just be the best folks to decide what qualities new comers should have. Your team already knows what it takes to be successful at your company.
Remember, the benefits of an employee-referral program definitely outweighs their possible shortcomings and it’s no surprise they are linked to lower turnover rates and increased morale.
A well-designed and clearly visible employee-referral program should be an essential part of any company’s recruitment strategy.
Is hiring a team effort in your company?
[themecolor]Dave Baney is the founder and CEO of 55 Questions, LLC. We work with successful top executives with a driving ambition to crush their competition. We help CEOs and Entrepreneurs improve alignment, communication and accountability throughout their organization.[/themecolor] http://www.55questions.com
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