How to Build a Great Employee Referral Program

Posted on 02/02 by Erin Helms

Implementing an employee referral program is a fantastic way to save hiring resources and improve the quality of your new hires. Employee referrals produce better candidates who perform better and usually stay with companies longer. Do you have an employee referral program? If not, here are tips for starting one.

Get Management Involved

Before implementing an employee referral program, it is essential to get approval from management. Try to get management to understand the value of these programs and encourage management to participate. You can also use management as a resource to set hiring goals and allocate resources toward the referral program.

Make the Referral Process Easy

For employee buy-in, your program must be straightforward. The rules and rewards need to be easy to understand and apply. To keep it simple, try the following: Use an online employee referral tool Create a simple online form Put a resume drop box in your HR department’s office Create an email template for referring candidates

Set Goals

Try to identify specific, measurable goals for the new employee referral program. A program must be time-bound, so you know what timeframe you need to achieve these goals.

Offer a Variety of Incentives

The program must offer an incentive, be it financial, non-financial, or a combination of both. The best way to determine incentives is to ask your employees what motivates them the most. Consider these ideas: Hold contests. Contests between employees build excitement and encourage teamwork. Go beyond money. Poll your team and ask what incentives will motivate them to refer employees. Customize based on location. Research the best area to customize your program. Consider special services available only in your area. If you choose to give money, consider a tiered system, such as offering more money for harder-to-fill positions.

Provide Instructions for the Program

Announce the program to everyone in the organization. Put out the incentive structure and highlight the most desirable awards. Include clear instructions so everyone knows how they can make a referral. Deliver instructions in a video or on a webpage, or place them in areas where employees typically congregate. Detail the program in your new hire onboarding process too.

Recognize Employees for Referring Candidates

If an employee refers a candidate you hire, recognize them for their impact on the company. For recognition, consider the following: Post a profile of the employee in the company newsletter Post about them on the company’s social media sites Announce their contribution on the company’s internal website or communication channels.

Track the Success of the Program

You must track your results to identify whether the program works and determine improvement areas. Evaluate referrals based on quantity and quality. Consider the number of referrals made, the number of referrals hired, whether you filled positions with referrals or other methods, and how long the candidate stays with the company. Let the professionals at LaborMAX provide your organization with dependable, well-screened individuals who show up on time and are ready for work.

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