It is a fact that employee referrals generate better quality and more loyal employees. It is pretty obvious, really. As they already know someone in the business, they are more familiar with it and they are more likely to be a cultural fit. Throw in the fact that hiring costs are lower, and it is a huge win-win. So, why do so few companies actively encourage referrals?
When a company does some great work, they often ask for a referral and this thinking should also exist when contemplating new hires. Success breeds success; confidence breeds confidence and great employees can breed great employees (occasionally, literally!).
It is not just the hiring costs that can be impacted by a bad hire. If they are a poor fit, there are also productivity costs with slower workflows and the extra time taken to train, an impact upon team morale and, if they exit, yet more hiring costs. Employee referrals will reduce the likelihood of bad hires.
Don’t just tell employee referrals how great your company is – show them
Word-of-mouth is still a fantastic way to sell anything, including encouraging talent to get on-board. However, this needs to be backed up by some evidence that you are a modern, forward-thinking organisation. In this digital age, people always do their own research and so it is important that you have a talent attraction portal that is fit-for-purpose. Employee referrals will talk the talk; a great talent attraction portal will help prove that you walk the walk.
Three things you can do to encourage employee referrals:
- Through your company values and employee engagement programmes, ensure all colleagues know what type of person is a cultural fit for your organisation
- Encourage colleagues to refer friends and family that they know fit the bill through a referrals-incentive programme
- Ensure your talent attraction portal portrays your brand in the best possible light.