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Employee Referral Programs Essay

974 Words4 Pages

Employee referral programs are important tools for building a strong backbone of an organization. In fact, the success of such programs can never be ignored or overlooked. Employees who are hired through referral programs mostly exhibit excellent levels of performance and engagement. In addition, in comparison to employees hired through traditional hiring techniques, those hired through employment referral programs shows higher retention rates.

However, the benefits associated with employee referral programs still appear insignificant in front of the gap that exists between the potential of this tool and its execution. In fact, it is estimated that referrals only account for a total of 7 percent applicants, much less than what is should actually …show more content…

Intentionally or unintentionally, companies often end up making common mistakes that prevent them from deriving the +maximum benefits of an employee referral program. By correcting the following five mistakes, you and your company can kick-start the employee referral …show more content…

By showing them the data, you can provide a concrete proof of what impact it makes to execute an employee referral program.

Mistake 2: Low Employee Engagement

An employee referral program is a big fail if it is not able to drive employee engagement and participation. A majority of companies fail to recognize the importance of employee participating and its role in strengthening the program. Employees who refer individuals for hiring are just rewarded bonuses and that usually comes after the candidate has been hired and has already spent quite an amount of time, for example three months, within the company.

Instead of bonuses that take so long, companies can try to drive engagement by providing small incentives that acts as a source of instant acknowledge. A simple shout-out in front of everyone is enough to motivate employees. You can even try and gift a company T-shirt as a part of referral recognition.

Mistake 3: Complex Referral Submission

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