3 Reasons You Should Implement an Employee Referral Program

With the rise of contract work, many organizations are seeking ways to attract skilled candidates. While many companies are diligent about their external recruitment efforts, ensuring their vacancies are posted far and wide, not every business examines their internal options the same way.

By implementing an employee referral program, you can access top talent quickly and efficiently.

Here are 3 reasons why these programs provide value to your business:

1. Better Candidates

One of the primary benefits of an employee referral program is access to better candidates. Since your staff is fully aware of what it takes to succeed in your environment, they are likely to refer only the professionals with the right skills, experiences, and demeanor to excel. Effectively, you are encouraging your employees to take part in the recruitment process. Typically, they will only recommend those they trust and feel could meet the requirements of the job, so they are functionally vetting potential candidates before you even learn their names. Additionally, high performers won’t risk their reputations by referring someone who isn’t suitable. They understand they are directly associated with any referred individuals, so they are only going to recommend the best and brightest people they know.

2. Decrease Costs

When you implement a referral program, you are creating a recruitment platform that doesn’t come with a significant price tag. Even if you reward workers for successful referrals, it will usually cost you significantly less than actively recruiting for the role yourself, such as by posting the vacancy on a job board. You can also save a significant amount of time with this approach. In most cases, a referred candidate already understands the basics of your business, as the employee who referred them likely shared information with the candidate in advance. This allows you to avoid covering certain information during the process as the job seeker is already aware of some of the introductory information.

3. Higher Retention

A referred candidate is usually actively interested in joining your company. They have learned about the position and environment from someone who already works with you, meaning they are privy to details other outside candidates might not know. When they apply, they do so from an informed position, increasing the odds they will be satisfied should they accept the job. Additionally, a candidate who is referred is more likely to be a good cultural fit for the company. Since they have prior knowledge and insider information, they can determine whether the environment would meet their needs in advance. If it doesn’t, they will usually decline the referral.

Boost Your Referral Program

Ultimately, by implementing an employee referral program, you have a lot to gain and very little to lose. If you would like to know more Award Staffing can help, contact us to speak with one of our knowledgeable team members today and see how our referral program expertise can benefit you.