There’s a better way to recruit. It takes less time, less effort, and improves your employee retention. In the words of pretty much everyone you’ve ever met, “It’s all about who you know.”
With entire social media platforms dedicated to building professional networks, that phrase reigns truer than ever before.
Hiring the right people is often a company’s steepest challenge. It’s time consuming, expensive, and, even after all the hard work and money spent, what are the odds these strangers, recruited off of a job posting website, don’t jump ship after their first year? Slim.
There’s gotta be a better way!
But wait–there’s more!
Hiring through employee referrals also enhances your company culture by improving employee engagement and increasing employee happiness.
All the Cool Kids are Doing it
So why isn’t every company recruiting through employee referrals?
Well, according to an annual report by Silkroad, a lot of them are. After analyzing data from 1,000 small, midsize and large companies, Silkroad determined that referrals bring in 30% of new hires, and 45% of those hires were internal referrals.
Google, Amazon, Apple, and Facebook are a few of the most successful and recognized companies today. Another thing they have in common? They hire largely on an employee referral basis.
But if you’re not the kind of person who is going to jump off a bridge just because your friends did, then think of employee referrals less like jumping off a bridge and more like climbing a ladder. There’s risk, sure, but there’s also someone beneath you to make sure you don’t fall on your head–your employee.
Your employee acts as your recruiter by providing this lead, but also as an insurance policy. Since they have a clear understanding of the company and the prospect, you’ll be able to feel good about their tip.
And your current employee will feel good, too!
Liz Ryan, Forbes Magazine contributor and Human Resource expert, said in her article The Truth About Employee Referrals,
“When you hire the friends of your friends, the original employee gets a bonus, and he or she gets something else. S/he gets to say ‘Yeah, I got my friend a job’ which is a pretty cool thing to say and a great feeling to have. You build glue in a company that way.”
Referred Employees are Happy Employees
Maybe it’s because they already know someone who works there, or perhaps their friend who referred them knows their values align with the company’s, but one thing is certain: referred employees are happy employees.
65% of referred employees love their jobs. They are very satisfied with how they fit into their role at the company and their ability to succeed in their new position.
The onboarding and transitioning process is smoother, because your new hire already has a connection to the company.
The hiring process is improved too.
Silkroad’s annual report said that compared to internal sources of candidates, external sources required twice as many interviews and four times as many applicants to reach the interview stage.
According to JobVite, applicants hired from a referral begin their position quicker than applicants found via job boards and career sites. Not only that, they have greater job satisfaction and therefore stay at companies longer. About 46% stay over 1 year, 45% over 2 years and 47% over 3 years.
An employee referral is the best recruiting channel out there. It shows your employees you trust them, saves time, money and energy all while acquiring the right kind of talent.
What more could you want?