If not, then why not? Your team currently (if, of course, they are hard-working, skilled, and competent) is in the ideal position to recommend employees who are like them!
And as they’re on the front line every day, they all are very familiar with your market, culture, and industry – and hence know exactly what kind of person you need.
There are so many ways that an organization could benefit by hiring people referred by its existing employees and save millions in costs incurred during regular recruitment or cash drains due to the wrong recruitment.
5 Benefits Of Hiring Referred Employees
Referral Hiring Saves Time
How many hours does your HR team spend on recruitment? Don’t they try every possible method of recruitment which includes listing on various platforms, ensuring its SEO is at par, and then scanning through the zillions of applications; many of which are irrelevant.
One of the major reasons you end up saving time is because you only study the resumés of applicants who have been selected by your own employees to suit your needs. This eliminates the need for too many screening processes since the referring employees already know about the company leaving no scope for unwanted surprises.
Also, you will obtain your referrals as and if a member of staff thinks that they would be a great fit. This is on par with other best recruitment practices.
Referral Recruitment Saves Money
How much do you think a recruitment agency would charge you for this service that your employee would do willingly and efficiently. Add on other costs like employee orientation, briefing, high turnovers, etc. that build up the cost of recruitment.
Instead of all this, if you give a portion of this money saved as a referral bonus to your employees, it will also boost their morale. Tempt your staff with that bonus and see what wonders it can do for your business.
Referred Candidates Are More Convincing
Joining a new company is like choosing a new roommate. One has to be extremely careful, dig deep and know all the dark secrets, and be familiar enough for a successful long term association.
Thus, when a potential employee gets this extra validation from someone you know and trusts, half your job of assessing a candidate is done. This familiarity would add credibility to your hiring significantly.
Referral Hiring Draws Better Candidates
Every time your employee is going to refer someone, he knows that his reputation is at stake. Thus, he will not refer any Tom, Dick, or Harry. He will only refer someone worthy and capable of the said profile. Consider this as your employees are screening candidates for you.
You can now say goodbye to problems where the employee underperforms or quits because he thinks he cannot adjust to the work culture or cannot keep up with the expertise required. While regular recruitment may also get you candidates with good qualifications, you will need to screen through heaps of resumes to find that one shining profile. Referral hiring ensures that every candidate referred is worthy of consideration.
Referral Programs Boost Employee Morale
Everyone loves it when they get more important than usual. Referral programs give a reason for your regular employees to be involved in decisions not only beyond his work profile but also those that are considered “Management’s Decisions”.