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.
On average referrals take just 29 days to get hired, which is faster than almost every other source of hire. Every day you spend on converting a candidate to a hire matters. The faster you hire 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.
Referrals are 2x - TWICE as 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.
On average, 7% of candidates in the pipeline are referred, but they make up over 30% of total hires. It's one of the smaller pieces of your inbound candidate funnel that pays outsized returns on your investment. 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.
Employee referral programs can save upwards of $3,000 in cost per hire. An agency placed hire can set you back almost $20,000 in most cases. With an employee referral program you get to control the reward payments. 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.