Top 10 Reasons to build an effective Employee Referral Program

The benefits of a well designed and executed employee referral program are innumerable, with some directly measurable benefits and many indirect benefits relating to better employee engagement and morale as well as higher retention rate.

Here are 10 top benefits of a robust employee referral program which might help organizations provide more support and impetus to their referral program.

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1. High Quality Candidates

The most immediate benefit of

employing a referral program is that

organizations get access to a pipeline

of high quality candidates resulting in

better quality of hiring and in turn a

more productive workforce.

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Higher interview to hiring ratio A higher interview to hiring ratio is

possible as employees act as partners in

the process.

Since they are in the best position to sell

the job and company to the candidate

and satisfactorily answer candidate

queries, the conversion ratio is much

higher.

2. 1 2 3 4 5 6 7 8 9 10

Lower Cost per Hire

A very big benefit that directly impacts

the bottom line of organizations is that

the cost of hiring through referral is

significantly lower compared to other

traditional sources of hiring like external

agencies and job advertisements.

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Culture Fit Since referred candidates are mentored by

the referring employees, they are able to

assimilate into the culture of the

organization faster and better.

This leads to more productive employees

who stay engaged with the organization

much longer bringing down employee

turnover and by extension reducing the

burden on the recruiting team.

4. 1 2 3 4 5 6 7 8 9 10

Global Reach

A big advantage of a referral program

is that it can be administered at a global level enabling organizations to maintain a global database of high quality talent.

Incorporate social media in your employee referral program to maximize your reach.

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A well run employee referral program increases the efficiency of the HR and recruiting team. Since employees are made partners in the process of hiring, the burden of sourcing and hiring gets shared among many leading to higher and faster closure rate.

Recruiting made easier 6. 1 2 3 4 5 6 7 8 9 10

A robust employee referral program can

go a long way in building and promoting

your employer brand within the talent

community.

As employees act as brand ambassadors

promoting the company and the job, they

indirectly help to create a positive brand

image for the company.

Employer Branding 7. 1 2 3 4 5 6 7 8 9 10

A major indirect benefits of a well run

employee referral program is that it helps

to build a pipeline of quality candidates

who do not fit the immediate

requirement.

These referred candidates constitute a

valuable pipeline available for immediate

capitalization for future openings.

Candidate Pipeline building 8. 1 2 3 4 5 6 7 8 9 10

Referral programs constitute a powerful

engagement tool as it empowers employees

to participate in the process of building the

organization with high quality talent.

A well communicated and implemented

employee referral program helps to keep

employees motivated and engaged with the

organization leading to a positive and

enabling work culture.

Employee Engagement 9. 1 2 3 4 5 6 7 8 9 10

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Improved ROI

A robust employee referral program

helps an organization realize better ROI

on its investment both in terms of lower

cost of hiring, faster filling of open

positions as well as higher productivity

of referred employees.

10.

ZALP is just a click away (www.zalp.com)

Hope these reasons clearly highlight the benefit of employee

referral programs in organizations. If you need any help in setting

up your employee referral program,

You may also opt for a free consultation on improving your referral program results. Our employee referral specialists would be glad to help.

For more information, visit

www.zalp.com To book a consultation appointment, drop a mail to

info@zalp.com You may also call us for any other assistance

1-866-217- 1267

The Employee Referral Booster