The Value of Employee Referrals

By: Sarah Sanborn, Eide Bailly Recruiter

While it may seem like recruiters have an endless supply of candidates just waiting in the wings to be called, this isn’t quite true. You, and every member of your team, are a valuable resource that is vitally important to attracting top-notch employees.

Did you know that the average employee will have 150 contacts on social media networks? In other words for every 100 employees, there are 15,000 contacts and potential candidates (according to Hebberd). Need some more proof? Jobscan notes that “research has shown that acquaintances whose social and professional circles don’t have as much overlap with yours are more likely to connect people to new jobs.”

Chances are you, or someone you know, has many exceptional referral candidates waiting in the wings collecting dust.

Perhaps you can’t think of anyone you know who is actively seeking out a new job. Or, maybe you think there’s no one in your network that would have the skills you are looking for. Recent research has shown that more than 83% of candidates would consider leaving their current company if another company with an excellent reputation offered them a job (Hebberd).

There are a lot of great reasons for encouraging your employees to refer hires:

  • “Referral hires are widely known to stay longer on the job, perform better and have greater job satisfaction as well as have shorter time-to-fill periods.” (Jobvite) In other words, referral hires can make doing your own job easier.
  • A referred candidate is faster to hire than a traditional candidate. “On average it takes 29 days to hire a referred candidate, compared to 39 days to hire a candidate through a job posting, or 55 days to hire a candidate through a career site.” (LinkedIn)

So, how do you move forward from here? Share your network and refer, refer, refer!

  • If you haven’t already done so, connect with your company’s recruiters on LinkedIn. Share your social network – if you don’t have the time to dig through your contacts for referrals, connect with your recruiters, and they can do it for you. (PS, if your company doesn’t have recruiters, or feels too small to hire recruiters, we can help! Our HR team is always ready to help you recruit top talent for your business – just ask!)
  • Actively think about the people you are connected to. Who’s the best accountant (or engineer or administrative professional) you know? Who attended college classes with you? Who do you see at your professional networking events? Who works in your industry? Who’s up and coming?       Think of anyone and everyone you’ve had professional contact with or worked with – you never know where that talent may be hiding!
  • Most importantly, don’t forget to refer those that you think might not be interested. Recruiting includes reaching out beyond the initial candidate and expanding to include their network! If they aren’t interested, they might know someone who is.

Your company hired you, and they want to hire more people like you! With your help, recruiters can confidently identify and hire top talent. The ultimate goal of a recruiter is to help you with your staffing needs so you can remain focused on your business. Help them help you!

2 comments on “The Value of Employee Referrals

  1. This is a great post. Gets you thinking differently about recruitment and where the best candidates might be.

    Like

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