5 Benefits of Hiring ReferralsAdmin
1) People who are referred to your company stay longer.
According to theundercoverrecruiter.com, on average 47% of referred employees stay longer than 3 years at a company compared to 14% of employees placed through a job board. Referred employees most likely know someone else within the company who is able to introduce them to the company and help build relationships.
2) Referrals are less expensive to hire.
Less money spent on job boards, advertising, and the hiring process. Spending $500- $2500 to pay out a referral bonus is far less costly that the time spent to manage a search by your internal HR staff.
3) Candidates who are referred to the company also speed up the hiring process.
According to theundercoverrecruiter.com, it takes 29 days for a candidate to be hired from referral vs. 55 days from a job board. Hiring managers are able to spend less time advertising, screening, and interviewing candidates.
4) Better fit with company culture.
Chances are if an employee gives a company a referral, they are equal or above the caliber of that person. It is unlikely for an employee to give a referral who is not qualified for the position or who doesn’t fit in with the company culture.
5) Referrals can be motivating for current employees.
Money, vacations, extra benefits, bragging rights, depending on the referral program what more could employees want? Current employees could build a good rapport with their current company. Current employees can give great testimonials about the company to their referrals. Remind employees that referrals are a great opportunity for them to choose the people who they work with.