Your employee referral program shouldn’t be scary. It’s one of the most valuable pieces of your candidate pipeline. If not one of the highest converting sources of hiring at your company. Everyone loves referrals and people love making them… until someone starts getting spooked.
It’s the time of the year to give thanks. We want to give credit where credit is due. In recruiting, employee referrals are pretty awesome for a bunch of reasons. So we are joining hands, going around the table, listing the reasons we’re thankful for referrals.
Here’s what was said at the Drafted dinner table.
1. Referrals move through the hiring pipeline quickly.
On average referrals take just 29 days to make it to the hire stage.
Every day you spend on converting a candidate to a hire matter. A lot of pressure rests on the shoulders of recruiting. The faster roles fill the faster the sales team can close more deals, the product team can build more features, or the customer service team can resolve more issues.
2. Once hired, referrals stick around.
Referrals are 2x more likely to stay at your company when compared to someone who wasn’t referred.
They’re not easy to get rid of. Once hired, a referral weaves within the company seamlessly because they already have a champion on the inside showing them the ropes. Being referred also means someone else stuck their neck out for you and is extra motivation to really show up and perform.
3. Referrals have a high conversion rate.
Around 7% of candidates in the pipeline are referred, but they make up over 30% of total hires on average.
For one of the smaller pieces of your inbound candidate pie, referrals end up making up for it when it comes to the entire makeup of your company. When taking a step back and looking at what sources of hires are the highest converting, expect to see employee referrals among the top three.
4. Referrals save money. The ROI is undeniable.
Employee referral programs help save $3k in costs per hire.
An agency placed hire can set you back almost $20k in most cases. When you have an employee referral program you get to control the reward bonus. That $20k per hire can quickly shrink to $4k and you get the added benefit of rewarding your own team. This makes everyone, even those not in recruiting, thankful for employee referrals.
Thank you for reading. Check out our SlideShare below for more exciting employee referral program statistics.