Employee referral programs are a great way of hiring new employees. Many employee referral tools can be used while making your own tailor-made best employee referral programs that will be suitable for your company.
The following information will help you in making an employee referral program software, an epic recruiting tool for your company.
1. Encourages Greater Employment Brand
Employees are the backbone of the company, and they need to talk about the company. According to a study, 75 percent of people applying for a job first consider the employer brand and reputation. A company needs to give a platform to its employees, former employees, and applicants through forums to make an effort to interact with them.
Employees can be motivated to consider the gains for working in the organization through the best employee referral programs. It will not only help in spreading the network through them but can also lead to large scale social media promotion with the help of the right motivation.
2. Hiring Quality is Improved
Employee referral program software helps in improving the quality of hires as the employees referring their network do it keeping in mind the qualities required for the job and referral’s strengths and weaknesses. The employees referring also keep in mind that the referral’s performance will reflect on them. It is found in a study that referred employees are 23 percent less likely to quit their jobs than the other hires.
The referred hires are guided throughout the hiring process by the current employee as to how best to put themselves forward through advice and mentoring.
3. Company Culture is Maintained
Culture is one thing that holds people together in the world. It is introduced in the companies as well to improve the productivity and turnover of the employees of a company. According to a study, an organization having a strong culture has a turnover of less than 14 percent and helps in making a happy and more productive staff. Whereas companies with poor culture have a turnover of more than 48 percent and is known to have an unproductive staff.
Good company culture is made through many steps like introducing the company’s goals, vision and values during the interview itself.
4. Attachment Should Be Built
Disengagement in work by the employees leads to a loss in both money and potential. According to a study, because of disengaged employees, the U.S. loses $550 billion in productivity each year. The workers not working up to their potential are as high as 70%. It is a major problem for companies to deal with.
Fortunately, employee referral tools help in overcoming this by making the employees realize that they have a role in the company’s future. Employees can feel motivated with the right incentives as what employees want is growth, and the right motivation can lead to the employees being attached to the company and fully engaging in work.
Implementing an employee referral system yields huge benefits to the company, according to many studies. An increasing number of companies are implementing employee referral systems.