Dive Brief:
- Done right, employee referral programs remain a fantastic way for employers to fill talent needs, according to Business News Daily.
- Because existing employees may already have strong professional networks, many employers already use referral programs for good reason: they actually work. Many employers under-use their programs, however.
- The article cites several reasons why referral programs are effective, including: candidates are essentially already pre-screened; they often will be hard workers; they are typically "passive" candidates; they usually stick around longer; and finally, they often are a better fit because they already know someone in the workforce.
Dive Insight:
Business News Daily offers a strategy for creating an effective employee referral program. For example, anyone referring a friend or relative should have a strong performance record.
Other ideas include waiting for a relatively long period before giving an award (6 months or longer), and varying awards to fit the position. In other words, if a job is tough to fill, an employer could make that award higher than for an entry level, unskilled job. Finally, Business News Daily says be sure to thoroughly communicate the program's specifics within the workforce, so there is no confusion about how it works.
Once a referral program is created and established, employers must be transparent about incentives, make the program easy to use (for both referrer and referred), and prioritize communication with referred candidates, even giving them them the "VIP treatment," Business News Daily reports. That way, if it doesn't work out, they will still have a positive view of the employer.
