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 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.
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.
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.
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.
At Drafted, we believe that your company network is your single biggest competitive advantage when it comes to hiring. Our mission is to make it easy for you to leverage your network in the hiring process to find the best candidates. Your network is already powerful, it’s just too much work to make it a priority over the day-to-day of recruiting. Companies that use Drafted see their employee referral numbers go up by 2x, their time to hire drop by 30% and their overall hiring efficiency increase significantly within just a few months.