Recruiting is an uphill battle for many employers. Many find it to be costly and time-consuming and they still have to deal with the never-ending issue of turnover. That’s where an employee referral program comes in. It can be incredibly helpful for streamlining recruiting and offers several distinct benefits.
Reduce Hiring Time
Research has found hiring time in the United States took an average of 22.9 days in 2014. This can pose problems for employers because a vacant position tends to create stress for other team members and can lower productivity. Employee referral programs are great because they have been found to reduce hiring time by nearly 50 percent.
That’s a substantial number and can have a huge impact on your company, especially in the long run. Going this route allows you to quickly get a position filled and can save you a lot of time, money and stress.
One of the top goals for most employers is having a solid employee retention rate. This makes a company more stable and prevents a lot of recruiting headaches. According to Zao, “Referrals are number one in employee retention rate after one year at 46 percent, which is considerably higher than the 33 percent for career sites.”
If your company’s retention rate isn’t where you would like it to be, there’s a good chance that an employee referral program can help you raise it. This is primarily because it tends to result in a higher quality of hire and a better understanding of a referral’s knowledge and skill set. After all, if a trusted employee can vouch for a referral, there’s a good chance they possess the traits needed to succeed.
Strengthen Your Culture
Another benefit is it encourages employees to think about all the positives of working for your company and then spread to word to people they know. Existing employees tend to feel like they have a stake in your company and the direction it takes, which creates a sense of inclusion. Offering incentives can increase engagement even more. Put all of this together, and it should result in a stronger company culture with a highly motivated staff.
If you’re looking for an effective way to recruit new talent, you should definitely consider creating an employee referral program. Besides the immediate advantage of finding qualified workers, it can help you in some other key areas as well.
Looking to improve your company’s recruiting? Get in touch with PrideStaff DFW today to see how we can help.