A Linkedin research showed that referrals improve the quality and retention by 45%. They also reduce the cost to hire by over 20%.
Why do referrals work?
Referrals work because the social value is critical in terms of building trust. Potential talent is more likely to trust the word of their friend/connections working in an organization, than what your marketing material tells them.
People like it when you think of them, especially for a job. The candidate may take the job seriously and is more likely to apply for the same.
Referrals offer a degree of personalisation, impact and comfort which is unparalleled compared to other sources of applications.
What problems with employee referrals?
There are two pain points with employee referrals
First, your employees are not aware of all the jobs that your organisations posts.
Second, they do not know who in their networks is having the desired skillsets for the job role.
They will not go out of the way to find, reach out and convince the right connection to apply for the job.
What motivates employees?
Most of the companies set up a direct cash reward to motivate their team to refer to talent. While cash is a useful reward it may not be the most desirable.
According to LinkedIn research:
35% of employees refer to help their friends.
32% do it to help their company.
26% do it to be seen as a valuable colleague.
Only 6% do it for money.
Rewards are not just for giving back to your team for their efforts, this should be used as an opportunity to acknowledge your employees. Your rewards are also a sign of the encouragement you show to your coworkers.
Here is where being innovative and offering a variety of rewards becomes important.
How Suitable helps?
Suitable automatically lists the relevant details of your employees’ connections in your potential talent pool.
It takes the burden off your employees to actively scout for good talent.
Suitable also offers a curated reward platform for your employees to choose from.
Read more about how suitable automates employee referrals.