Dive Brief:
- Employee referrals have always been a good source of new talent, but a report from Gallup describes such programs as "a talent gold mine" if structured properly.
- According to Gallup, employers searching for talented employees, whatever the geographic location, can't afford to relax standards and hire below-average or average candidates to fill jobs. But in today's labor market, finding the best people is getting even tougher.
- Unfortunately, a frequently overlooked strategy is developing that internal referral program. Gallup reports that encouraging referrals from current employees can be very cost-effective compared to sourcing methods such as LinkedIn, newspapers and other print advertisements, television commercials, radio announcements or head-hunters.
Dive Insight:
Gallup's article explains that current employees typically have large social networks (classmates, ex-colleagues/co-workers, neighbors, professional connections, family members). And they both understand their organization's culture and often know a role's talent requirements. In effect, they represent the perfect pre-screening process as to whether or not someone might be right for an open job.
Employees who make referrals are afraid of risking their reputation, so they are unlikely to make poor referrals. Gallup also notes that engaged employees want their employer to succeed, another potentially motivating factor in referring the right person.
Gallup offers some suggestions for an effective employee referral program, including ensuring that the interview process is objective (internal referrals need to be treated as any other job candidate); ensuring that the referring employees understand the interview process, and finally, keeping employees informed on how their referrals are progressing through the interview process.
