guide to a successful employee referral program
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ZALP enables organizations to automate and streamline every aspect of their employee referral program while at the time same integrating it with the potent potential of social recruitment using its advanced social media capabilities.TRANSCRIPT
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Guide to a
successful Employee Referral Program
Guide to a Successful
Employee Referral Program
Questions to ask for
• Why should your company go for a referral program
• Whom to invite for participation in the program
• How to ensure continued engagement and interest in the referral program
• What results to reward
• How to build momentum and increase participation over time
Successful Referral program
Nearly 3 in 10 employers have caught a fake reference on a job application
Guide to a Successful
Employee Referral Program
Why should you go for a
• Employees hired through referrals have the highest retention rate -46% vis-a-vis 33% for employees hired through job portals
• Rated #1 for diversity hiring
• 1 out of every 5 referral gets hired. Saves time spent on recruitment efforts
• Highest quality of hires among all recruitment channels
Referral program
Referral employees have a better cultural fit and turn out to be better team members
Guide to a Successful
Employee Referral Program
Whom to invite
• Current Employees
• Past employees
• Network of past and present employees
In the Referral program
to Participate
Referrals are 5 times more likely to be hired
Guide to a Successful
Employee Referral Program
Successful • Mobilize participation by rewarding employees with both
cash and non- cash incentives
• Ensure continuous flow of communication on the employee referral program to ensure top- of-the-mind awareness
• Harness the power of social media
• Take feedback and review effectiveness for continuous improvement
• Introduce gamification within your referral program to boost participation
Employee Referral programs
Guide to a Successful
Employee Referral Program
Incentivising referral
Cash Incentives • Cash rewards are decided based on
• industry and company size • position for which the candidate is being referred. • Skill set required, for E.g. some skills may be hard
to find in the market or conversely might be in great demand in the industry
• Cash incentives should be paid out in 2 tranches
• Half the amount when the referred employee joins the organization
• Remainder should be paid out when the referred employee completes the mandated probation period and is confirmed
Mobilizing participation by
Offering employees socially responsible gifts like donations to their favorite charities also acts as a
powerful motivator
Guide to a Successful
Employee Referral Program
Non- Cash Incentives • This is now increasingly being used by company’s to
build engagement and motivation for the referral program
• Recognize employee contribution in employee referral programs through acknowledgement at public functions, badge of honor, personalized notes etc
• Award non-monetary benefits like an extra paid vacation day, reserved parking space, time out with significant other etc.
Incentivising referral
Mobilizing participation by
Offer a small incentive for the very act of referring an employee
Guide to a Successful
Employee Referral Program
Communication plays a very important part in building understanding among employees regarding : • Why should they refer - referral program and its
associated benefit
• How to go about Referring a Candidate
• What to expect, the process steps once you have referred a candidate
• The referral program should be communicated in various ways during the entire employee life cycle starting from onboarding and induction right through appraisals and team events, going down to ensuring exiting employees act as brand ambassadors to refer candidates
Ensure continuous engagement with
Communication
Participation is likely to spike when employees are made to experience that their contribution makes a
difference
Guide to a Successful
Employee Referral Program
Build a Buzz around the referral program through Promotional Events – Contests, Competitions and Jackpot Prizes Conduct periodic contests and competitions, bumper draws and reward the winners with coveted prizes like tickets to a popular match / event, opportunity to participate in events / conferences, electronic gadgets etc Generate competition within departments and teams – the team that generates the most referrals converted into hires within a given time period is awarded a team prize like a day out at a resort etc
Ensure continuous engagement with
Communication
Employees should not only be aware of your referral program, but also excited about it.
Guide to a Successful
Employee Referral Program
Ensure job opportunities are communicated and updated regularly and displayed in prominent gathering places so that it becomes a topic of discussion among employees Build comprehensive job descriptions for open positions containing all relevant information to reduce the number of queries for employees Conduct an employer branding exercise and build the referral program around it. This will help you and your employees sell the company to potential candidates on the key differentiators of your company as an ideal employer.
Ensure continuous engagement with
Communication
Not every referral will turn into a hire, but each referral contributes to the notion that your
organization is an employer of choice.
Guide to a Successful
Employee Referral Program
Maintain a consistent messaging across all recruitment efforts to promote a unified brand. Ensure that employees have the material available to sell the employer brand to potential candidates Ensure that your referral site is easy to access, navigate and extremely user friendly. It will help to have the site architecture displayed at prominent notice boards to facilitate top of mind awareness One of the most important aspects of a successful referral program is to ensure that employees are regularly updated regarding the status of their referred candidate. This can be through an automated system where the employee can log in to check the status or it can be through mails to employees informing them of the status of their candidates.
Ensure continuous engagement with
Communication
These initiatives help employees feel valued and involved in the entire process and subsequently
builds ownership and positive word-of-mouth for the program
Guide to a Successful
Employee Referral Program
Harness the influence of
Social media The following steps will help you use social media effectively to build a successful employee referral program • Educate employees on the do’s and dont’s of social
media, what to keep in mind when creating a profile, protocol of sharing information , online networking, and converting network contacts to referrals.
• Build your social media strategy to create easily shareable content to market your employer brand. This can include link to interesting blog posts or articles, posts to Facebook and Twitter, sharing company updates, major events, team outings, open positions etc.
Social media has now become one of the most potent tools to use both externally to build a
connect with end users as well as internally with your employees and their connections
Guide to a Successful
Employee Referral Program
• Training employees on building and managing a stronger, more robust professional network will in turn help them refer more and better quality people.
• Educate employees through workshops on how to identify valuable contacts, make solid introductions, establish mutually beneficial dialogues, and determine if and when they should consider referring someone to your organization
Harness the influence of
Social media
Its time for you to Stop resenting the time your employees spend on Facebook
Guide to a Successful
Employee Referral Program
Continuous Improvement through
Feedback & Review
Measure and Monitor Program effectiveness through • Analyzing new hire matrix
• What percentage of hires come from referrals?
• What is the turnover rate of referred hires? • How does a referred hire’s on-the-job
performance compare to that of hires obtained through other sources?
• Capturing Employee Feedback on • Level of awareness on the incentive program • Ease of using the site • Incentive Rate • Suggestions for improvement
Nothing is constant and hence even the very best employee referral programs need to be updated to keep pace with technological innovations, macro
economic changes, changes in workforce dynamics and company growth curve.
Guide to a Successful
Employee Referral Program
• Efficiency of Referral Program • Evaluate and benchmark turnaround time from
when a candidate is referred to when the candidate is hired. Explore ways to reduce the time lag to increase the efficiency of the program
• Analyze employee participation trends (spikes and drops) in causes for the same
• Track trends in technology and linkage to hiring
• Cost of hiring through Referral and other recruitment channels • Average cost per hire for hiring through the
referral program • Average cost per hire for hiring through other
sources like job portals or agencies • Measure ROI
Continuous Improvement through
Feedback & Review
The key question to ask yourself is whether you are getting the best value for your investments in the program, and what is the scope for improvement
Guide to a Successful
Employee Referral Program
The Future lies with
Gamification • Gamification spends will grow to as much as $2.8bn
by 2016
• 70% of Fortune 500 company’s will use game mechanics at the workplace in some form or the other by 2014
• Gamification offers the flexibility to recognize and reward in a small way for committed efforts to bring in quality profiles that are interview worthy
• Majority of employees today would like to work for a brand that is perceived to be fun and playful
As per Wikipedia, Gamification is the use of game thinking and game mechanics in a non-game context
in order to engage users and solve problems
Guide to a Successful
Employee Referral Program
Unleash the potential of your Employee Referral Program with ZALP–The Socially Intelligent Employee Referral Tool
ZALP enables organizations to automate and streamline every aspect of their employee referral program while at the time same integrating it with the potent potential of social recruitment using its advanced social media capabilities.
Each of ZALP's features have been specifically developed to give organizations a new and innovative referral platform that drastically accelerates employee participation which in turn results in a considerable reduction in the cost per hire and time to fill.
The unique aspect about ZALP is that it gives employees not one but five easy and convenient ways to refer jobs to their connections. Interesting features like the ZALP Match ensures that even if employees do not have a top of mind connection to make a referral, the built-in intelligent match feature suggests the most relevant matches for a job out of his/her own social network connections.
Advanced features like the ZALP Track ensures that employees are kept well updated on the status of their referrals by giving them real time updates on the entire referral progress. The interesting thing about ZALP is that it is a highly scalable tool and can be seamlessly used by organizations having 100 to even 10000+ employees. Considering ZALP operates in the SAAS model (software -as-aservice) organizations do not have to go through the cumbersome hassles of integration and implementation. Organizations with even a global presence can effortlessly adopt ZALP without having to go through any elaborate integration process.
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