What is referral recruitment?
Referral recruitment is a modern recruitment strategy that employers use to find the right candidates. HR professionals typically offer perks to employees so that they recommend new hires for open positions. The employees then act as ambassadors of the organization. Usually they promote the organization to a friend, family member, or someone else from their network. By focusing on referral recruitment you ease the workload of the HR department.
What are the advantages of a referral strategy?
With a referral strategy you can recruit talented employees. Because you make use of your employees' network, they will generally recommend other people with the same characteristics. There is a good chance that the new candidate will fit the company just as well as the current employee. Labour market data from the Intelligence Group shows that the recruitment of a new employee costs an average of 4,494 euros. A referral strategy significantly reduces these costs. The other benefits are:
Higher quality new employees
Your current employees understand the company's mission, values and culture. That way they can look within their network for people who align with the company's culture and have the skills needed for the job. There is a greater chance that the referral candidate will fit in at the company and perform well.
Save time and money
By using a referral strategy you spend less money during the recruitment and onboarding process. You get information about potential candidates faster, which entails lower costs for posting vacancies. With a shorter hiring time you spend less money on attracting talent and improve the productivity of your recruitment strategy.
Employee branding
With a referral strategy you can improve your company's reputation. During their search, job seekers, for example, look at company reviews before they apply for the open vacancy. Because your current employees recommend your company within their network, you can attract talent more quickly for open and future positions.
How do you set up a referral program?
Referral recruitment is a useful tool to improve your recruitment process. Keep the following points in mind when drawing up a referral recruitment strategy for your organization:
Choose the right strategy
Your referral program won't succeed without a solid foundation. It's important to draw up an action plan. That way you can work in a targeted way to bind the right candidate to your organization.
Think about an attractive offer
To encourage your current employees to look for the right candidate, it's important that you offer something in return. What's in it for me? The offer must be attractive enough that your employees want to recommend the organization within their network. Think, for example, of a financial bonus.
Draw up guidelines
Transparency is a must. To prevent confusion among your employees, it's smart to draw up guidelines regarding your referral strategy. That way everyone knows not only the benefits but also the conditions and rules of your referral strategy.
Keep your employees informed
Make sure your employees are aware of what your referral strategy entails. Provide space so they can ask questions. If an employee refers a candidate, it is important that you keep him or her informed of the progress of the application process. If they hear nothing more, they will be less likely to refer another candidate to the organization.
Measuring is knowing
After you have mapped out the strategy, it's important to find a way to measure progress. You can do this, for example, using a tool. The right software can help you analyze the data and see what does and doesn't work.
