This post was originally published on the Lever blog and updated January 15, 2021
Back in 2017, Lever published an infographic from their recruiting benchmarks research for startups and SMBs with insights into how referrals dominate the recruiting process. They uncovered some best practices around employee referrals:
With these findings they ask the CEO of Drafted, Vinayak Ranade, to offer up his expertise to establish some employee referral best practices. Below is what he had to say to the Lever team —
When you start tracking your recruiting process in your brand new applicant tracking system (ATS), you realize that the number of hires you get through referrals has steadily declined. You find yourself relying more on expensive outside agencies, hiring just seems to get harder, and more expensive. Then you have a brilliant idea. What if we just took a fraction of the money we pay to headhunters and give it to employees instead? It’s like crowdsourcing our new hires! Duh.
Your new Employee Referral Program (ERP) is launched with a simple email to all employees announcing a referral bonus for anyone who introduces the management team to the company’s next hire. You get an uptick in resumes in your ATS that week from submissions. There’s some buzz going around the office about it. “It’s working!” you think. But by Day 10, all you hear is crickets.
The Talent team starts periodically reminding everyone about the referral program. But after a while the referrals dry up again.
Give a shot of adrenaline and 1,000 volts to resuscitate your ERP with these tactics:
Everyone knows referrals are the #1 hiring strategy and produce incredible results from a cost, quality, and retention standpoint. Simply starting an ERP without using best practices is like putting a Band-Aid on internal bleeding. Don’t be stuck with a lackluster employee referral program. — We happen to make tools that help with setting and adhering to employee referral best practices. If you want to have the best ERP (BERP?), the Drafted + Lever integration might be able to help.
This post was originally published on the Lever blog and edited for the Drafted blog. Lever is a Drafted partner that focuses on streamlined, modern recruiting technology.