Think of the considerable time it takes for your HR team and an external recruiter to find the perfect fit. And now think about the money it costs your company to post on job boards, promote on social media and other expenses they must make in order to get the word out about open positions within your business.
Something to consider? A referral program. Referral programs can save you time and money both in the long and short term – and it’s easier to implement than you think.
Still not convinced? Here are the top 3 benefits of a referral program.
1. Time to Hire
An employee will refer a candidate on two grounds – they like their employer, and they trust someone enough to put their reputation on the line. A referral is as much a recommendation of your company as it is a recommendation their referred connection.
The referred candidate will already know exactly what they’re getting into based upon what they know from their friend. They will come prepared to the interview with the qualifications they think best align with the position’s needs based on what they’ve heard from their connection – often speeding up the interviewing process as there’s slim opportunity for misunderstandings. Depending upon the good word of your current employees, it is likely their connections will be just as happy in your company.
2. Shorter Sourcing
Talented people tend to know other talented people – more about that later – and can spread the word about your organization better than any job ad you might place. Think of a referral program as free marketing. Not only does it speed up the interview process, it can speed up the sourcing process – reviewing recommendations rather than an ongoing pile of resumes can save your HR team or external recruiters from spinning through the same candidate pool.
3. Access to Passive Candidates
Perhaps the biggest advantage of a referral program? Access to passive talent: those not actively looking for work. Sometimes, the best talent is already employed, but the right opportunity could persuade them to consider looking elsewhere – like a highly praised referral from a friend. Considering today’s low unemployment rate, it’s no secret talent can be hard to find, so access to passive candidates could be the key to placing the right people within your company when you need them. Next to offering a competitive salary, this is your fastest track to the markets best talent.
Whether your gearing up for ramp season or looking for just one new member for your team, consider a referral program. By trusting those you’ve already screened and hired, it’s likely they know the next best fit for your company.
