How Employee Referral Program Helps With Retention

Keeping employees for the long term is important for companies that want a strong and stable workforce. One way to achieve this is through an employee referral program. This program encourages employees to recommend qualified candidates for job openings within the company. It helps with hiring and also improves employee retention. In this article, we will explore the benefits of employee referral programs and provide insights on how to implement and maximize their potential.
 

What is an example of an employee referral?

An employee referral happens when a current employee suggests someone they know for a job in the company. For instance, if a company needs a marketing manager, an employee who knows a talented marketer from a previous job can recommend them. The preferred candidate goes through the normal hiring process but has an advantage because a current employee recommended them. If the candidate succeeds in their role, it benefits both the employee who made the referral and the organization.

 

How to ask an employee for a referral?

Asking employees for referrals can be done effectively. Here are some steps to follow:

Let employees know about job openings: Make sure employees are aware of the open positions in the company. You can share this information through email, company newsletters, or internal communication platforms.

Explain the benefits: Highlight the advantages of employee referrals, such as referral bonuses, recognition, or the chance to work with trusted colleagues. Emphasize how their referral can positively impact the company's growth and success.

Provide clear guidelines: Clearly define the criteria and qualifications you are looking for in referred candidates. It helps employees understand the kind of individuals they should refer.

Make it easy: Simplify the process of submitting referrals. Use an employee referral platform or an online form where employees can quickly provide the necessary information about the candidate they are referring.

Recognize and appreciate referrals: Show appreciation for employees who make successful referrals. It can be done through public recognition, referral bonuses, or other incentives. By showing gratitude, you encourage employees to continue participating in the program.

 

Advantages of this program

Implementing an employee referral program has several benefits for employees and the organization. Here are some key advantages:

Quality candidates: Employee referrals often lead to hiring high-quality candidates. Since employees refer individuals they know and trust, there is a higher chance of finding candidates who fit well with the company culture and possess the required skills.

Time and cost savings: Employee referrals can significantly reduce the time and cost involved in the hiring process. Referred candidates usually have shorter recruitment cycles since they have already been pre-screened by the referring employee. Additionally, the cost per hire is often lower than traditional recruitment methods.

Improved retention: Candidates who come through employee referrals are likelier to stay with the company longer. They already have a connection within the organization, which fosters a sense of belonging and loyalty.

Increased employee engagement: Involving employees in the hiring process and giving them a role in bringing in new talent boosts their engagement. The organization values and trusts them, leading to higher job satisfaction and commitment.

Larger talent pool: Employee referrals help expand the talent pool by tapping into the networks of current employees. It is precious for reaching passive job seekers who may not be actively looking for opportunities but could be interested if referred by someone they know.

 

How do you email an employee referral?

 

Email subject line: [Introduce the employee referral program] 

 

[Greeting], 

 

[Opening statement about the purpose of why the organization wants to do a referral program] 

 

[Write details of the position that’s open along with job responsibilities] 

 

[Ask employees to refer the position to a qualified candidate]

 

[Include the link to the job posting] 

 

[Provide questions for employees to answer regarding the candidate they are referring]

 

[Call to action such as replying with candidate’s contact information and resume] 

 

[Next steps in referral process] 

 

[If applicable, share details of the reward employees will receive] 

 

[Sign off] 

 

[Your name] 

[Your signature]

 

Sample Email of Employee Referral Program

 

Email subject line: Help us find great talent!

 

Hello,

 

I hope you're doing well. I am sharing an exciting opportunity to help our company grow even more vital.

 

We currently have an open position on our team, and you might know someone who would be a great fit. The role is for a [job title], and the primary responsibilities include [list key job responsibilities]. We would greatly appreciate your referral if you know someone with the skills and experience for this position.

 

You can find more details about the position and how to apply in the [job posting/link]. If you have someone in mind, please answer a few questions about the candidate you're referring to. It will help us understand their qualifications better.

 

Once you have gathered the necessary information, please reply to this email with the candidate's contact information and resume. We will take it from there and reach out to the candidate for further assessment.

 

We value your contribution to our employee referral program and want to show appreciation. For each successful referral, we have a [reward] for you. It's our way of saying thank you for helping us find exceptional talent.

 

Please don't hesitate to reach out if you have any questions or need assistance with the referral process. We are here to support you.

 

Thank you for your ongoing commitment to our company's success.

 

Best regards,

 

[Your Name]

[Your Signature]

 

Frequently Asked Questions (FAQs)

Q1: What is an employee referral?

A1: An employee referral is when a current employee suggests someone they know for a job in the company.

Q2: How can I ask an employee for a referral?

A2: Inform employees about job openings and explain the benefits of referring someone. Provide clear guidelines and make the process easy.

Q3: What are the advantages of implementing an employee referral program?

A3: Finding high-quality candidates, saving time and cost in the hiring process, improving retention, increasing employee engagement, and expanding the talent pool.

Q4: How can an employee referral program help with hiring and retention?

A4: Referred candidates tend to stay with the company longer due to their existing connections and sense of loyalty.