How willing are you to change the way you reach out to talent, to increase not only your success hire rate but also your staff retention? A decade ago, that was the million dollar question, asked by companies who were looking to hire high-end candidates through the expensive and—most often than not—disappointing services of recruiting companies(instead of asking internal employee referrals).
Today, with the advancement of technology, companies—independent of size—are relying heavily on their technological resources to reach out to candidates. However, despite having potential accessibility to a vast pool of talent, nearly two-thirds of employers prefer to use the more conventional hiring routes such as job boards, external recruiters and their company website.
How about the remaining one-third of employers? How do they manage their hiring process and how successful are they in recruiting top talent for their companies?
Simple: they hire nearly 40 percent of their staff from employee referrals. Employee referral programs allow your employees to take an active role in the talent acquisition process. Talent hired through referral programs are found to outperform other employees, as they tend to be pre-qualified, and they often have no trouble adapting to the company culture with ease, as the referrer offers guidance. In fact, referred candidates are considered to be the best ambassadors of your company’s culture and ethos.
- Candidates are usually pre-screened because the company’s employees are all too familiar with the hiring process and overall requirements and will be able to determine beforehand which candidate is more suited for the job.
- It offers access to a pool of passive talent that otherwise is inaccessible.
- Referred candidates will fit right in from the word go, due to their pre-existing relationship with their referrer.
- Employee referrals stay longer and work harder due to their high satisfaction with the company’s culture and recognition towards the success of the overall hiring processes.
The advantages of an employee referral program—coupled with an ATS such as TalentHire — are ample. As a matter of fact, employee referral programs have been around for many years. Organizations such as Google, Microsoft, L’Oreal, and Amazon have benefited from referral recruiting for years, like so many other companies in the USA, who have hired up to 50% of their candidates in this way.
Are you ready to recruit new talent? Here’s what steps you should take to build your own talent engine.
- Find a referral platform that works best for you
- Ask your network of colleagues, friends, family, and alumni for referrals
- Offer monetary or non-monetary rewards for successful hires
- Keep your hiring process transparent
- Utilize the power of social media platforms
- Keep your employees informed
- Simplify the application process for candidates
- Offer your feedback
Take these steps now and you’ll be well on your way to seeing 40% or more of your hires coming from employee referrals.