Three Reasons a Referral Program is the Best Recruitment Tool
When hiring new talent, most organizations want to do so as quickly and effectively as possible, and one of the best ways to accomplish this is by implementing an employee referral program. By encouraging employees to refer their family, friends and acquaintances for open positions within the company, you can significantly enhance your recruitment efforts. Below are three reasons why an employee referral program may be your best recruitment tool yet.
- Improves Quality, Quantity, and Speed of Hire. Employees know an organization’s culture and what it takes to be successful. They also know the skillset and character of the individual they are referring. These two things combined often lead to bringing in a better-suited individual for the company, which results in a more qualified hire. By having employees assist in the recruitment process, you’re able to reach their networks, as well as their friends’ networks, expanding your recruiting efforts and the company’s network of talent. The result: an increased number of hires. And because referred employees often require less prescreening and analysis, this often speeds up the hiring process.
- Improves Retention. Hiring employees who have a good understanding of the company and a go-to resource internally can significantly reduce turnover. Not only do new hires tend to stay longer with an organization when referred, but so do the employees who referred them. Why? By working with friends and family, they are typically interacting with people they enjoy, trust, and consider to be more than just coworkers.
- Builds Engagement. Employee referral programs help increase engagement for both the referring employee and the employee being referred. By encouraging employees to play a role in growing the company, and therefore the success of the organization, they feel valued and trusted. And, as the referred employee, knowing you have a mentor in the individual who referred you allows you to assimilate into the company’s culture more quickly, which leads to a sense of engagement right away.
At Faith Technologies, we recognize the positive impact an employee referral program can have on the acquisition and retention of talent, which is why we’ve implemented the ACE (Advocate. Counsel. Educate.) Program. The ACE Program is two-fold:
- It empowers employees to help grow our company by helping us locate qualified candidates who share our same values and work ethic.
- It provides newly hired employees with the opportunity to gain knowledge and insight from fellow Faith employees, who serve as ACE Advisors, related to their experience, competencies, and career development needs.
Since the introduction of our ACE Program, roughly 50% of our new hires are coming from employee referrals. Additionally, we have a 20% higher retention rate with employee referrals versus non-referrals.
Is it time your organization considers implementing an employee referral program?