Stats to prove you need a better referral hiring program

January 24, 2020
Vinayak Ranade
CEO at Drafted

Sometimes the hardest things to prove, are the ones that we already 'know' to be true. In talent acquisition, there's no better example of this than the value of employee and community referrals. While it's universally understood that referrals are valuable, it can be quite challenging to quantify the value of them.

Does this sound familiar?

You're a talent acquisition leader who wants to build or bolster a referral program at your company. This requires team buy-in and a budget for rewards and a referral management software. While your executive team is on board with the concept of referrals, they won't greenlight your 2017 plan to increase referrals.

Your CEO says something like,"We already get lots of referrals. We don't have a referral problem. Why would we need more?"

Employee Referral Value - Without a formal business plan in place, it can be easy to simply concede and go back to manually asking for referrals when you need to hire. But, think about it: Would sales leaders ever get asked the same question? "We already have a lot of customers. Why would we need more?" Logic like this hinders a talent leader's ability to build their best team possible, but you can't blame your CEO or executives for not fully embracing your plan if you don't have the data to support it. Most executives don't know the quantifiable value of building or expanding a referral recruiting program.The Slideshare (see below) breaks down the most impactful employee referral statistics. It's also (hint hint) easy to share with executives interested in seeing the data-driven side of referrals.Or get all of the email templates and the customizable presentation and build your own deck to get executive buy-in on referrals.

Quick Hits: Shareable referral hiring stats

Referrals get placed fastest.

  • The average referral candidate takes 29 days to place. Job board candidates take 10 additional days, and career site candidates take 16 additional days.

Referrals stay at their job at more than twice the rate of job board candidates

  • While 45% of referrals stay at least two years at a job, over 80% of employees sourced through job boards leave.

Referrals make up 40% of your workforce.

  • Only 7% of candidates are employee referred, but 40% of hires are employee referred.

Referrals come from inside and outside of your company.

  • While 59% of referrals are sourced through employees, 41% of referrals come from outside of your company.

People make referrals

  • 35% to help friends
  • 32% to help their company
  • 26% to be seen as valuable
  • 6% to make money

Referrals are:

  • A great culture fit, according to 70% of employers.
  • 25% more profitable than peers.
  • The best hires, according to 88% of employers.

Top companies hire through referrals:

  • Facebook - 60%
  • Deloitte - 49%
  • Ernst & Young - 45%

About Drafted

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.