The more you research on it, the more it becomes clear that employee referral can be one of the best recruitment techniques to hire job candidates. Why? Researchers have revealed that hiring a referred candidate is much more accessible as well as cheaper. It also produces a better hire and lowers the turnover rate for your company.
Industry experts opine that an excellent referral program allows your entire workforce to become a recruiter and of course, enables you to get the very best regarding new job candidate hiring. When as an organization you have so many recruiters and so many resources, it helps in developing an excellent recruitment technique – that is a good employee referral program and end up empowering all of your employees.
So, what are the exact benefits of having an employee referral program in place? Well, some of the top benefits of an employee referral programs as recruitment techniques are explained in the paragraphs below:
#1. A referred candidate is less costly to hire than a conventional one
It has been proven that hiring an already referred candidate is always cheaper to hire because, as an employer, you do not have to indulge in more significant expenses like recruitment outsourcing, and others – such as advertising costs on job boards, agency fees or any other expenses. It also implies spending less on your organizational labor costs.
#2. A referred candidate is faster to hire than the ones that are not
Among all other recruitment techniques, when you engage a job candidate through an employee referral program, it becomes a much faster process to recruit candidates. You do not have to craft a job posting or spend money on anywhere else in tapping a job candidate. According to a study by Jobvite, it has been concluded that hiring a referred employee takes roughly 30 days while a traditional hire might take more than 60 days at times.
#3. “It is much easier to onboard a referred hire than a traditional one.”
Some researchers also claim that a referred hire even on-boards faster. This is because they feel that they have someone known within the workplace, whom they can turn to. It also gives new hires a sense of belongingness and helps them gel faster within the new environment.
#4. A referred hire is expected to stay longer within an organization.
The next significant benefit of such recruitment techniques happens to be the fact that a referred hire is expected to stay longer within an organization. While organizations often deal with increased turnovers, a referred candidate has been found to stay longer with an organization. It is a clear indication of a higher quality hire.
From the above information, it can be concluded having an employee referral as one of the recruitment techniques happen to be one of the best. And if an organization can leverage the power of the same, correctly, they will be able to tap some of the best possible talents.