4 Reasons to Use Employee Referrals

Traditionally, vacancies have been advertised through recruitment agencies, job boards and in newspapers but more and more companies are relying on their staff to help find the right candidates, and here are the 4 main reasons for this trend. A recent survey has shown that 88% of American companies relied on their employees as the main source for providing a pool of candidates.

However word-of-mouth is just not enough. The rise of the internal referral is mainly supported by the importance of social media networks the employees belong to, whether personal or professional. These enable staff to simply share the job advert on their pages.

1.       Saving time and money with internal referrals

Motivating employees to refer people means saving money on recruitment agencies, newspaper adverts or career websites, and saving time as well.

There is no need to brief an HR professional about the company’s values and the job profile; employees know what the values and mission are, and generally have a good understanding of the roles to fill.

2.       Insuring high quality recruits

Because referring people more or less puts one’s credibility on the line, staff will carefully consider which people to contact; this is like a pre-selection made by someone who knows the business inside out, and does not base their judgement on qualifications and appearances.

3.       Strengthening bonds with existing staff

An employee will clearly only refer a friend or an acquaintance if he is happy with his position and with the company. He/she is then the best “brand ambassador” to sell the company to candidates. Being able to refer a potential recruit is very rewarding for the employee and may boost potential employee engagement, especially when there are rewards offered.

4.       Develop a corporate scheme

A succinct corporate scheme is very useful to ensure employees pass on the culture and vision of the company whilst referring potential recruits, as well as to be clear about what the incentive and the timeline may be (for instance after a successful trial period of the new recruit). The scheme gives the referral approach visibility and clarity. It will also make it easier to follow the success of the enterprise and if needed, amend some elements or add incentives.

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