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A good employee referral program should be an integral part of any corporate recruiting plan. On average, forty percent of hiring comes from employee referrals. Referred employees fit the company culture better, are usually much more satisfied and stay longer at companies. However, generating a strong employee referral program is not something that can be done overnight. It takes time, commitment from leadership and it must be ingrained in a company’s DNA.
Here are 6 steps to get you on the right path:
1. Start by valuing your employees
It may sound simple, but no one is going to refer a person from their network if they don’t see their current job as a long term career. Engage your employees. Ensure that they see their career path. Gauge this in their annual (or ideally, semi-annual) review process. This first step is the most critical, and companies need to nail it on the head before even thinking about the remaining steps.
2. Design a plan and implement it
Cash rewards are the most common ($100 to $5,000+), but they aren’t the only option. Consider gift cards or other perks (free lunch, extra day of vacation, etc.). No matter what, design a plan and ensure everyone in the organization understands it. Talk about it often – include it in new hire materials, mention it in company newsletters and bring it up in reviews. You need to get your employees thinking like recruiters, which means always musing on how to attract top talent to the organization. To encourage this, consider rewarding the referral and not just the hire. Recognition is as important as the reward. Go beyond a personalized thank you note by broadcasting it on the company’s social media accounts, newsletter and/or corporate intranet.
3. It starts at the top
Executive and Management teams need to lead by example by actively participating in the program (though they may not be eligible for the rewards), and constantly encouraging employees to do the same.
4. Make it easy on the employee and the referral
Regularly communicate your active openings to employees and encourage them to direct prospective employees to the corporate careers page. If the candidate isn’t active, encourage the employee to a get a name and email address. If they can’t get their email, a name will likely suffice since a good recruiter can track the person down via social media. If the referral is passive about a career move, set up a casual conversation or coffee meeting with a recruiter or hiring manager to have them learn more about your company.
5. Be proactive and think outside the box
Make sure the managers, recruiters, and sales teams know about the openings outside of their own areas of expertise. These are your well-networked players – let them use their connections.
Request referrals from new employees right away. Implement this as a step in your onboarding process.
Think about non-employee referrals. Your clients, vendors, investors, board members, alumni, etc. should all know your organization well enough to be able to refer the top performers in their network to you. Track the results. Know who your good referrers are, and of equal importance, who has given poor referrals.
To generate a constant flow of talent, you must keep the program front of mind and keep people engaged in the advancement of the organization.
Remember that not everyone is looking for a new opportunity right now. Think of these people as long term investments. Some might be ready to move in two weeks, some might be ready in two years. Stay in touch.
6. Communicate and don’t forget to close the loop A primary reason that referral programs fail is slow or no responses to referrals or inquiries. Consider implementing the following process to avoid this problem:
- Report feedback or responses within 48 hours.
- Fast track referrals by having specific and/or separate deadlines for interviewing these candidates.
- Allow these referred candidates to choose the time and date of their interview, and/or offer online assessments.
These flexible options are enticing to candidates because it makes them feel valued and everyone is interested in saving time.
- If the referral gets hired, share the good news as soon as you are able. Of equal (and maybe greater) importance, if the referral doesn’t get the job, explain why to both parties in a timely manner.
Finally, remember that great employee referral programs aren't built in a day – they take time, dedication and participation. Start right away and continue to work at it until it’s a thriving and integral component of the company culture.
