How to design a good Employee Referral Program.
Buddy referral is the need of every successful recruitment hiring of any organizations these days.
When you have so many recruiters and a fool of resources or employees who are actively interested in such employee referral programs then it helps to have a great referral program in order to empower all of your resources to help in sourcing or hiring.
Research shows if candidates hire via right employee referral program then it helps the recruitment team to help candidates to stay at their jobs longer than traditional hires and a great referral program improves a business overall retention rate.
Research also shows if the strategy to build a strong referral program turns out to be weak then a lot of hurdles can even ruin the employee referral plans.
This is the reason why the need of good employee referral program is needed;
Step 1: Determine the Goal.
- The first Step in creating any perfect employee referral program is to have a clear vision of what it should accomplish and is not always just to get more referred candidates.
- For example, research shows that some companies that have sought to improve their diversity via referrals always focus on some selected group of employees to refer more. Such firms always try to increase referrals in specific areas of their company such as for sales, testers, junior consultants, etc.
- Once your team has agreed on the broad goals, then it’s time to get specific. For e.g. current hiring of fresher’s with engineering background may be at 30% and the goal is to get that up to 50%.
Step 2: Create an exceptionally user-friendly process.
- You have design your employee referral program and your next step is actually to create it, which should
- The less work an employee has to do to refer a candidate, the more successful the referral program will be. The simplest and the best way to provide the recruitment team with a name and some way to contact the referred candidates, and the recruitment team take it ahead from there.
Step 3: Train your workforce.
- You have designed your goals with a user-friendly process and now it’s time for people to use it.
- One of the best ways to use employee referral program is to train your employees on how to use their referral program, much easier and this training should cover three major aspects;
A) The practical nature of how to use the system.
- When a system is designed, it’s necessary for its successful working for which people need to know how to use your employee referral system. If you do so, it’s easy to carry ahead the rest of your plans for its success.
B) What your company is looking for in referred candidates.
- The goal of this second aspect is to teach the employees, what the firm is looking for. It also feels the need to talk to the candidates in order to understand the leadership team values in them.
Step 4: Continue to keep your employees engaged.
- One of the biggest reasons why some employees don’t refer candidates is they don’t know what jobs are open and the bonus earnings they will earn. (Especially in case of urgent requirements) So, it’s also important to promote the number of open positions via some sort of marketing promotional team members with a proper tap on the live update status on the same.
- To understand this live updates we can either buy employee referral software, else if possible design a step-by-step manual approach to making it smarter. In case of manual approach, it’s must have a weekly email session like the “Friday Employee Referral Openings” or the “Bonus Employee Referral Openings”. Special employees who engage quality profiles should also be appreciated annually in order to support and promote employee referral for the upcoming days as well.
Step 5: Understand the importance to Recognize.
- Employee referral program is setup and now well active. You update the right open position numbers and gets referrals. Congrats – It’s the time to appreciate or share “Kudos” with the employees who helped hire the right employees
- One of the most preferred ways these days is to recognize employees who refer the right candidates with either cash i.e. via referral bonus or even recognized in the form of points which is sum-up for the employee’s annual hike as well. An employee who refers a good candidate and gets positive recognition is more likely to refer again, and it will inspire others to follow the same as well.
Step 6: Measure your efforts.
- In order to understand the success rate of any employee referral program, it is must to measure the efforts required within the same process as well. Apart from individual goal metrics, it is must know some other basic metrics as well which are;
- Overall percentage of hires via referrals
- Percentage of the referred candidate who hears from your company.
- Percentage of qualified referrals.
- Quality Hires via referred hires
- Workforce’s participation rate in the referral program
So these are the 6 step guide, which will ensure you to get the most out of your program, which will help to reduce the burden of your recruitment team and improve the overall talent within your company.