Your Employee Referral Program Can (and Should) Do Better!
The hype around employee referral programs has hit peaks and valleys over the past few decades. While it’s frequently acknowledged that referral programs outperform other recruiting methods in actionable leads, time-to-hire, and time spent in a new position, those pluses have historically been balanced out by the need for greater HR involvement in running and monitoring the program. Additionally, some companies have found that their employee engagement levels are difficult to maintain over time, leading to less effective referrals.
We’ll let you in on a little secret: today’s employee referral programs are different. Companies such as JobShakers have made innovative updates to the traditional referral program, harnessing the power of technology and mobile connectivity to blaze new trails. The result? An employee referral program that continues to thrive without hours of weekly attention from HR and recruiters.
Overcoming Labor Shortages with Referrals
Here’s another secret: Your current employee referral program is not producing the kind of results it needs to create an impact on overcoming labor shortages, but it can! Studies have consistently shown that referrals perform better than other recruiting methods in terms of producing qualified new hires. But they also show that on average 24% of total new hires result from employee referrals, up to 40% at some companies.
[Related Insight: Sources for Talent Acquisition: the Good, the Bad, & the Ugly]
The bottom line is this – your employee referral program should (and could) be contributing over 40% of your candidate pipeline in order to keep your company staffed with qualified talent. Skilled workers are becoming harder to source due to low unemployment and increased competition, but this doesn’t have to mean an uphill battle for HR and recruiters. As we wrote recently in regards to the projected labor shortage in many vital US industries, “It’s possible to strengthen your recruiting strategy to find and engage skilled, quality talent while also reducing the expense of recruiting (both in time and money).” Here’s how:
Make Your Referral Program Work for You
Too many companies are caught up in “old model” employee referral programs and growing frustrated with their results. However, it’s not the referrals that are stuck in the past – it’s the program. JobShakers has reinvented the employee referral program with a comprehensive solution that addresses the ways in which “old model” programs fail.
Here are some of the signs that your referral program isn’t working for you the way it should:
It’s inconvenient to use.
Making a referral should be intuitive and reflexive, like a handshake. When a new position opens or a new contact occurs, your employee referral program must be easily accessible to become part of the conversation. That’s why JobShakers harnesses mobile technology to meet potential applicants where they already are – on their mobile device. There’s no paperwork involved, so nothing stands in your employee’s way when they encounter a qualified contact. Referrals can fill out a streamlined application from their mobile device and become part of the pipeline immediately.
[Related Insight: Reaching Today’s Mobile-Minded Job Seekers]
It’s hidden in the background.
Your referral program should provide a steady flow of applicants to your recruiting pipeline, but that doesn’t mean it should become background noise. Successful programs are front-of-mind, so there’s no doubt about making a referral when a possibility arises. How do you keep your referral program in the forefront? Create a culture of employee referrals in which employees are automatically notified of open positions and publicly recognized for their referral efforts. JobShakers’ custom-branded referral program and accessible user interface ensure you won’t want to keep your program in the dark.
It’s lacking compelling incentives.
As Simone Smith writes on Recruiter.com, if “employees lose motivation to participate, you lose out on quality hires through their referrals. Shake things up from time to time to keep employees engaged.” Incentives and engagement are a vital part of the longevity of any referral program, which is why JobShakers provides built-in promotional materials, games and contests, and employee recognition. Active participants drive successful referrals, so we’ve created a program that places engagement at the forefront.
It’s eating up your time.
For HR and recruiters, the employee referral program killer is all the time spent encouraging employees to make more referrals and then engaging with potential applicants, all while exhaustively tracking and monitoring the process and results. With such a people-heavy process, it’s no wonder that many referral programs begin to fall apart! Luckily, that’s an outdated model. JobShakers’ dashboard automatically collects all the vital information you need to assess and manage your employee referral program. With automated messaging, follow-up, and employee recognition, it’s never been easier to manage a successful referral program.
Embracing the Modern Referral Program
Your employee referral program should work for you, providing a steady stream of applicants and enabling you to quickly fill open positions with qualified workers. If that’s not the case, or if less than 40% of your recruiting pipeline comes from referrals, it’s time to ditch the outdated model for an innovative, tech-savvy solution.
Contact JobShakers today to schedule a demo and see what the future of employee referrals programs looks like!