8 Ways Employee Referral Programs Make Hiring Productive
One might wonder why a company would need employee referral programs when there are managers and HRs to perform the same functions. For the reason, businesses were skeptical of implementing an employee referral program as an integral part of their recruitment process. But that was until a few years ago. Brands are now adopting new measures to make their hiring process more effective. They are willing to go beyond the traditional approaches of finding the right candidate for their company. And they have rightfully succeeded in doing so. Brands around the world accept that they have integrated software for generating employee referrals to make the entire recruitment process simpler, effective and more powerful.
Why Companies Need Employee Referral Solutions
Most managers and HRs in organizations have multiple responsibilities, handling more than one function at a time. And though hiring is one of the most important responsibilities they handle, there’s a limit to their reach and the number of CVs they can scrutinize. An employee referral program works infinitely and performs multiple tasks at a time.
Ways Employee Referral Programs Make Hiring More Productive
- Greater Referral Reach: One of the ubiquitous difficulties in the hiring process is the limited reach of the job postings. The notifications stay valuable for as long as the medium sustains itself, for example: newspapers, or offers it visibility. A smart employee referral program comes with social widgets that let employees share job opening notifications with their contacts on multiple social networks, such as Facebook, Twitter, StumbleUpon, Digg, etc. Now consider all employees of a company referring a job notification to their friends, family and acquaintances. Don’t you estimate a huge reach accrued instantly? That’s the power of employee referrals.
- Greater Work Diversity: Once the employees have realized how a successful hiring will positively affect the workplace and task progress, they will have their objectives aligned with the company’s. Gone are the days when people had limited networks. Social media has brought people from different races and backgrounds close. It has now become easier for them to connect with people from different ethnicity, educational background, experience and skill sets. Here, we add another badge to employee referral programs for bringing diversity to businesses’ workforce.
- Motivate Employees: This brings us to the propellers of a successful employee referral program. It is the employees who carry the program ahead. Give your employees a reason to stay active. Align employee referral activity with opportunities to earn social recognition and exciting rewards. Give away small cash rewards or vouchers to keep them happy. Often it’s not even financial motivators. In fact, employees do not always seek cash rewards for their efforts. They look forward to tokens of appreciation or recommendations that might help them raise their status. Here are a few things brands can offer to motivate their employees:
- Social badges
- ‘Thank you’ notes
- Special mentions at company events or lunches
- Develop a hierarchical system where employees are ranked monthly and rewarded based on their performance
- Exciting Contests
A greater number of companies are now developing employee teams to foster competitive spirit among employees. Run a contest and set standards for winning, such as the team that generates most referrals wins. For better results, the team that gets the maximum conversions through referrals would win. It becomes easy to engage employees in groups and generates better results.
- Better Quality Candidates- There’s no reason an employee would think of referring an unworthy candidate. When their reputation is at stake, they will think of bringing only quality workforce to the company.
- Savings on Time: If we tell you an employee referral program expedites the entire hiring process, imagine days of hard work and planning reduced to hours. Consider an employee referral software scrutinizing tons of CVs based on the standards set by the company. This ensures only the most relevant employees are shortlisted for interview. Compare this against the huge effort and time managers and HRs have to invest in getting job posting published, shortlisting candidates and conducting interviews.
A smart employee referral program will also offer online tools to evaluate CVs and schedule interviews. Post evaluation, the referral program also automatically informs shortlisted candidates at once. Such features help businesses save a lot of time.
- Reduced Expenditure: Why spend on multiple sources to get prospects for your company when you have one software package to distribute job posts information, generate referrals, assess CVs, shortlist candidates and inform the interview schedule! That means with an employee referral program, businesses do not have to spend separately on seeking services on headhunters, online and print ads, and paying commission per hire. Small rewards or social motivators usually do just enough to boost employee morale and deliver results.
- Improvise for better results, everytime- However good the program features, unless employees get an insight to how they are being evaluated, the company will never be able to perpetuate the sense of responsibility and self-motivation. A feature-rich employee referral program lets employees track referrals. This way they can track results: referrals converted, email opens, and links clicked. Tracking allows them to monitor results and work on their shortcomings. If employees’ referrals are converting, they will try to send more referrals, so they can earn better rewards.
- Employee retention through a dash of gamification- Companies around the world aim at developing healthy competition among their employees. Embedding gamification features with your employee referral program not only makes it engaging but also delivers better results by motivating employees to contribute to building a stronger workforce. Leaderboards display a list of top referrers, and diffuse sense of competition through the workforce. Employees can further be motivated by raising their social levels or offering titles, such as Contributor of the Month.
Employee referral programs are designed to excite employees and build stronger bonds with them. Companies have realized that designating responsibilities to employees and offering happiness in the form of rewards results in employee satisfaction and retention as well. Of course hiring is an important, integral process of every company, but when there’s a more effective solution offering better management and savings on expenditure, it makes complete sense to rely on it. Better still, good employee referral programs developers offer 24×7 support and complete integration of programs with minimal IT work at the client’s end. Isn’t that a bonus?