Employee referrals are known to result in more efficient hiring. U.S. companies hire 29 percent of their workforce through referrals—and at least 88 percent of employers love employee referrals. At companies like Ernst & Young, referrals can account for up to 45 percent of non-entry level hires, according to The New York Times.
Hubspot, the inbound marketing and sales software for social media marketing, content management, web analytics and search engine optimization, has one of the best employee referral programs in the industry. Devon Brown, Recruiting Manager at Hubspot, is one of the secret forces behind this success.
When it comes to hiring, timing is everything. How many stories have you heard about the right person getting hired because they were in the right place at the right time? Or even more common, the right person was referred at the right time. Finding and sending referrals isn’t always the clearest and easiest process for people. And the only way to start getting a consistent flow of referrals is by making the process as easy as possible. Follow these 3 steps to simplify your referral hiring.
Referral parties tend to go something like this… A department of 20-30 people hangs around the office for a couple of extra hours to be fed pizza by the talent team. While eating a slice of pie they search through their LinkedIn connections to find some people that they can refer. Referrals are found, maybe even contacted, and recorded in an ATS, spreadsheet, or hopefully somewhere.
Everyone involved here knows perfectly well that the people on a reference list are expecting your call, and they’re probably prepared to sing the candidate praises. So if you already know exactly how this conversation is going to go, why bother picking up the phone? The truth is, reference checks can be extremely valuable.
We already know that references provided by candidates tend to be skewed positive, and that’s not always particularly helpful to the person trying to decide if a candidate is the right fit. So how do you get a more balanced picture of what this person is actually like in the workplace?
Forward-thinking companies leverage their entire referral network. Hiring is the top challenge for startups and Fortune 500 companies alike. Thinking about hiring in a holistic way through referral networks can help you win at employer branding, recruitment marketing, and referral hiring.
At Drafted we really love referrals and the people that send them, so we are constantly thinking of great ways to reward our best referrers. Here are some of our all-time favorites.
In three years, Yotpo’s staff has grown over sixfold — from 50 employees in Tel Aviv alone, to over 300 with offices in New York, London, and soon, Salt Lake City. Rapid scaling at a startup is notoriously challenging. It’s expensive, time consuming, and presents a range of operational challenges. But Yotpo’s company wide bingo-themed Recruitathon saved the company $70,000, and brought in over 500 referrals, plus 16 new hires in the Tel Aviv office In 2016, the Yotpo New York City office grew from 30 to 90 employees. In 2017, they hired another 20 people in just 44 days during their February 15 challenge. And if you think there must have been a quality versus quantity trade-off, think again.[…]
Earlier this year, we launched referralprograms.org as a free community resource to share data about referral programs. (Here’s a link to the announcement) Based on community contributions and other publicly available data, we surveyed 145 companies to create a benchmarking report for referral programs. We’re kind of obsessed with referrals at Drafted. We noticed that when speaking with talent leaders anywhere, the same kinds of questions kept coming up: Does a referral bonus actually help get more referrals? What’s a good referral % to aim for? How can we structure our program and bonus to be the most effective? How does our referral program compare? Now that we’ve compiled the information for you, you can stop Googling referral programs and start browsing[…]