As we’ve written about before, employee referrals are a valuable, powerful tool for building teams. There are several types of employee referrals, and companies with referral programs have higher retention rates and are overall more effective than other sources of hiring.
But many companies just incentivize their employees to make referrals - and stop there. In doing so, they’re ignoring a much bigger network of potential talent from which they could be getting introductions to candidates. Even without an external community referral program, 41% of referrals come from outside of your company already.
A robust, community-sourced referral program should extend to clients, vendors and business partners. This extra level casts a much wider net across a much larger and more diverse pool of candidates.
Let’s look at one example of a new group you could tap into by opening up your referral program – job-seekers. The graphic below illustrates the findings of a study by Talent Function Group, LLC, on how many people are involved in each stage of the hiring process:
Only 20% of everyone who sees your job posting will begin an application, and just 50% of that number will actually finish it. 75% of those applications will be screened and 33% of those will be seen by a hiring manager. About 20% will be further considered, and just one will be hired. Right now, that one hire is all you’re adding to your referral network. The other 999 people who engaged in the process are a ‘dead network’ of potentially valuable connections that you’re neglecting.
But what if if you extended your referral program to everyone who’d ever seen the job in the first place? You could encourage external referrals by including a reward alongside the job post for anyone who refers someone who gets hired. Know someone who would be a great fit for this job? Make a successful referral and get rewarded.
You do this, and your opportunities exponentially increase:
You could tap into those original 1000 who saw the job posting, and 1000x increase the chance of a getting a referral for a great candidate.
Ready to take the leap? Here are two of the primary keys to making your community referral program a powerful tool:
Your next top software engineer is somebody that somebody knows. It might be a friend, a client, or a business partner. An external referral network helps you connect with top talent quickly. Recruiting is marketing for people, and you want your marketing campaign to hit as many of the right people as possible. When scouting for talent, cast the net wide.
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.