Developing a strong employee referral program gives you an excellent complement to your current recruiting efforts. These initiatives allow you to turn hiring into a total-company effort. By involving your current employees, you make building the team everyone’s business, leading to better hiring outcomes and developing a more cohesive company culture.
Benefits of an Employee Referral Program
Employee referral programs offer a number of essential benefits. You can lower the cost of recruitment and bring in more passive talent. Meanwhile, using one of these systems can increase your retention rates and shorten your training times.
But how do you make sure you create the right kind of referral program? How do you develop a program that will bring you all these advantages? As with most projects, the details matter. Here are a few steps to keep in mind as build your employee referral program:
Build the Right Program for You
The structure of your referral program will depend on your situation. Before launching a program, outline your goals, and conduct the appropriate due diligence. Look at your industry and at the particular jobs you are trying to fill.
Also, consider the kinds of rewards that will make your employees take the program seriously. You want them sufficiently invested in the outcome to put in the appropriate effort. Cash incentives are the most common form of reward offered by companies as part of an employee referral program. The amounts vary greatly on the situation. Still, more than two-thirds of firms (69%) set aside an amount between $1,000 to $5,000.
However, there are other options as well. If you are trying to save cash, you can offer other types of rewards as well. Additional vacation days or other fringe benefits can also incentivize your referral program.
Set Clear Qualifications
Let your employees know what you are looking for. Detail the qualifications you expect to find, and the job requirements you want to fill. This way, your employees can focus on the right candidates.
Also, a high level of transparency lets you avoid any confusion down the road. The purpose of the program is to find talent and improve team building. The last thing you want is to foster bad feelings among your current staff. Clear rules and guidelines help sidestep this potential trap.
At the same time, clearly define what constitutes a referral. You’ll need to create a formal process for making referrals and issuing the rewards. Otherwise, you’re just inviting complications and bad feelings in the future.
Sell the Program to Your Staff
You want your employees enthusiastically on board with the referral program. As such, take the time to sell them on the project’s merits. You should be prepared to discuss the details at length with interested people. At the same time, be ready to answer whatever questions they might have.
Moreover, stay responsive to employee feedback. They are the ones who will have to connect the program. If certain aspects aren’t workable, you’ll want to revise the program as you go. Your workers will be on the front line of the initiative, making them your best source of information.
Build a winning team
Along with internal efforts, like an employee referral program, consider using a staffing firm. A top-ranked recruiting partner, like LaborMAX, can bring you the perfect workers to take your company to the next level.
Contact LaborMAX today to find out more.