I have always been amazed by the power of a well run Employee Referral Program (ERP).
It’s a simple concept that rewards employees for recommending people within their network to the Talent Acquisition team within their organisation, for a specific vacancy. When I was contracting as a Corporate Recruiter it was the first thing I asked about – where’s the ERP? And if there wasn’t one – I would implement it!
With white hot demand for staff globally, never has there been a better time to review or implement an ERP for your company – no matter what the size. A successful program is remarkably cost effective in that the employee reward – usually between $2,000 and $5,000 USD per hire – can result in the hiring of a talented people who may never have applied roles had they not been approached by an existing employee i.e someone they know and trust.
LinkedIn, job boards and direct search are traditional methods that target passive candidates but being approached by someone you know from within an organisation is compelling.
Simply put, an ERP should be a key component of any Talent Acquisition strategy and should be driven and managed by the TA team.
Here are our Top Tips to get the most out of your company’s ERP
Regularly promote the ERP
The golden rule is to regularly and consistently remind staff of the ERP. TA should drive this and can, for example, release an email every Friday with a link to the ERP rewards and terms, current vacancies, newsworthy items and draw specific attention to hard to fill roles – ‘Hot Jobs’.
Explain the job requirements
When promoting the ERP make sure the is a clear link to vacancies on your careers site – employees can describe the culture or an organisation but need to know the essential requirements of a role.
Recruiters should keep the referrer updated
As recruiters we need to nurture the referrer! Keeping the referrer updated as to the progress of their referral is important and should ensure a positive recruitment experience for all concerned. Remember that there may be many other contacts within the employee’s network and you want to keep them engaged and informed in order to receive more referrals in the future.
Celebrate success!
A recently filled role from an employee referral is a real win for the employee, the hiring manager and TA – call out the success and recognise the referrer in the regular weekly email!
Consider a mix of monetary and non-monetary rewards
Money is a popular incentive but an experience (e.g. trips, vouchers, or airfares) can help to market your ERP. And some of these incentives, like time off and gift vouchers can be less expensive than cash awards. I personally favour a combination of cash and ‘experiences’ as the total reward for referral – particularly in terms of hard to fill roles.
Just get Started
If you don’t have an ERP in place, don’t overthink it – just start one – the value of such a program should be clear to your leadership team. It may not be perfect to start with, and can be tweaked depending upon success. Regardless of company size or geographic location, you will fill more roles.
Ben Dodd – Director, Corporate Recruiters
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Looking to implement an ERP and fill more roles? We have a number of accomplished Corporate Recruiters who can help you quickly and efficiently set up or review your ERP. Contact us for further details here.