Employee Referral Programs: Can Branding Them Really Boost Recruitment Success?

Hi, I would like to have your views on branding and promoting an Employee Referral Programme in the company. Would that really help a company to attract people?

Thanks in advance.

No second thought, an employee referral program is a very useful and economical tool for hiring the right people. It also helps in retaining employees and finding passive candidates. According to me, it is a must for organizations.

The Benefits of Employee Referral Programs

Employee referral has lately become a popular trend in companies because of all the benefits it offers at a low cost. You can get referrals from employees who already know the company inside out and obviously think positively about it, which is why they refer new people.

Secondly, the cost involved is not that high. HR should drive it in a manner that yields maximum results. Most of the time, I have seen people who refer a new employee also motivate and mentor them. In the long run, it works as a retention tool as well.

Employees who refer others receive gifts, vouchers, or monetary rewards. This acts as a motivating and retention tool for them. Hence, proper branding and positioning can make this tool very successful in the organization.

I feel this is one of the best ways to brand your organization and attract key talent. However, referrals will fall through if your employee satisfaction is scoring low. In simple terms, you will not get any referrals.

Benefits of Employee Referral Programs

Employee referral is definitely the best means to brand your organization because:

• It is a highly economical means to get new employees.
• It is an easier way to receive resumes, rather than getting a whole lot of irrelevant resumes from other sources.
• The referring employee also benefits monetarily.
• It motivates current employees to stay with the organization.
• Most of the time, the current employee acts as a buddy/mentor to the new joiner whom they have referred. Therefore, HR need not emphasize appointing a buddy separately.
• The current employee of the organization will speak well about the organization (provided they are satisfied), indirectly or directly contributing to branding the organization.

Benefits of Employee Referral Programs

Employee referral programs are definitely worth investing in due to their benefits when compared with other sources of hires:

- Cost efficiency
- Highly qualified candidates
- Higher engagement
- Lower turnover
- Longer tenure
- Better cultural fit
- Less recruitment time and effort

However, turning employee referral practices into a competitive advantage is not easy at all. If you are wondering about its real effectiveness, remember that successful people tend to associate with other successful people.

Best Practices for a Successful Employee Referral Program

Here are some best practices I recommend to guarantee a successful employee referral program:

1. Build a strong employer brand
2. Be transparent in the recruitment process for all participants
3. Set an attractive reward policy for referrers
4. Integrate the employee referral program with social media

For those interested in further details: http://4 Best Practices to Generate ...ferral Program.

Regards