How To Build An Employee Referral Program That Works

employee referral program

Finding that perfect new hire can be a challenge and that’s why most companies use a range of methods in their search. More often than not, a company will use technology, head hunters, university advertisements, or traditional job postings to get the skilled personnel they require.

However, more companies than ever before are focusing their efforts on establishing a robust employee referral program to complement their overall strategy. The popularity of employee referral programs goes a long way in showing just how effective and useful they can be; if executed correctly and when complemented with the right technology.

We’ve listed our top tips to give you the best chance of nailing your employee referral program and hiring staff that will truly make a difference at your company. So, have a look at our list now or simply head over to the HR page in order to find more of our recently articles and blogs.

  • Make sure your properly educate your hiring managers

The success of your employee referral program is going to rest on whether your hiring managers really know what’s happening in the now and in the future too. Communication is vital and adequately educating your hiring managers may seem daunting, but it’s importance can’t be overstated.

When educating your hiring managers, make sure you provide them with the latest data and teach them how to use all the essential software tools that make the job easier. By doing this, you should see that your time-to-hire, cost-of-hire, retention rates, and employee turnover stats improve considerably.

  • Clearly define all job requirements

While this may sound obvious, many employees won’t know the exact requirements your company may have when looking for new hires. It’s easy to know if a friend of colleague is a good fit culture wise, but actual suitability in a specific role can be a bit more elusive to work out without proper advice.

So, if you’re looking to receive referrals by sending out emails, always include detailed job descriptions to make things as clear as possible. However, in addition to this, it can often be useful to include information that covers exactly what you’re not looking for too.

After all, a bad referral can reflect negatively on the employee who made it and cause them to experience a drop in productivity if they feel awkward afterwards.

  • Update your employees during the process

It seems like an obvious point to make, but you’d be surprised how many companies put up an unintentional wall of silence when it comes to their referral program. Let your hiring managers know that they need to take the time to send updates to any employee that has made a referral.

Failing to keep referrers updated can put them off referring again, which could cost you hiring an absolute superstar. To counter this, simply let your employees know if their referral has been selected for interview and what’s going on at every stage of the hiring process. But, if it doesn’t work out, send them a thank you email anyway and encourage them to continue referring candidates.

  • Praise and reward good referrers

First and foremost, you can’t ever pass on the opportunity to financially reward your employees for referring suitable candidates your way. However, that’s not to say you can’t include non-financial incentives too. Think about mixing up your rewards with money and experience-driven awards to keep things fresh and exciting.

But, while rewards go a long way, nothing really conveys appreciation quite like a good old fashioned “thank you”. Public praise from managers or even the CEO can inspire the referrer in question as well as those around them.

  • Work with your marketing team at all times

If you’re trying to fill an opening at your company, you should be aiming for the very best in terms of employee suitability, experience, and quality. So, it shouldn’t come as a surprise to learn that social sharing and word-of-mouth advertising will come in handy.

Thankfully, this is where your marketing team can really come into play as they can communicate their strategy with your employees. Almost all your employees will use social media platforms of some kind, so it’s vital that your marketing team encourages them to share company job posts when there’s a role to fill.

Do you need expert assistance to get your technology up to scratch in order to truly support a modern employee referral program? To learn more about how we can help, simply contact a member of our team now.