Your employee referral program isn't attracting top talent. What can you do to fix it?
Employee referrals are a great way to source qualified candidates who fit your culture and values. But if your referral program is not delivering the results you want, you might be missing some key elements that motivate and reward your employees for their referrals. In this article, we'll show you how to fix your employee referral program and attract top talent with these four steps:
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Brian Miller
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Rinku ThakkarFounder & CEO @ Huptech HR Solutions | Entrepreneur | Helping Companies to Hire the Best Talent.
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Shubam Tripathi- -Hiring/HR Automation /DEI Advisor /Public Speakerll Talent Hiring & Campus Head || AI/ML/RPA || Leadership Hiring || HR Transformation || HR Process & Policies II TA…
Before you ask your employees to refer anyone, you need to clearly communicate what kind of talent you are looking for. Create a detailed job description that outlines the skills, experience, and personality traits that match your role and culture. Share this with your employees and explain how they can identify potential candidates in their network. This will help them focus on quality over quantity and avoid wasting time on unqualified referrals.
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Defining your ideal candidate is crucial before seeking employee referrals. Craft a detailed job description outlining the required skills, experience, and personality traits aligned with your role and culture. Share this with employees, guiding them on identifying potential candidates in their network. Emphasize quality over quantity, ensuring focused efforts and avoiding time wasted on unqualified referrals. Clear communication sets the foundation for effective employee referrals in alignment with your hiring needs.
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Clearly defining your ideal candidate is crucial before seeking referrals. A detailed job description ensures employees understand the criteria, enhancing the quality of referrals. Emphasize alignment with company culture to foster effective matches and optimize time and effort.
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Communicate Clearly: Ensure that your employees fully understand the details of the referral program. Clearly communicate the specific roles you are looking to fill, the qualifications needed, and any rewards or incentives offered for successful referrals. Promote the Program: Actively promote the employee referral program through various channels. Use internal communications, company newsletters, and meetings to raise awareness. Align with Company Culture: Highlight your company culture and values to make the program more appealing. Offer Attractive Incentives: Review and update the incentives offered for successful referrals. Gamify the Process: Introduce gamification elements to make the referral process engaging.
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Your employees are always ready to help you - We just need to clarify the requirements, what skillset we are looking, qualification or certifications etc. Once your employees get familiar with the requirements, they will add the top Talent in your referral program.
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It's important to note that while Hiring Managers, Executives, and Recruiters really appreciate Referral Programs, these policies are extremely outdated ad inequitable. These practices, if left unchecked, can further exharbate any DEI issues the company might be facing. Before getting started with these programs and before identifying what an "ideal" candidate is/means - a biased definition on its own - I invite you to assess how a referral program might harm your company culture and DEI efforts, and focus on addressing those issues first.
One of the main reasons why employees refer candidates is because they want to help their friends and colleagues find a good opportunity. But that's not enough to sustain a successful referral program. You also need to offer incentives that reward your employees for their effort and contribution. These can be monetary, such as bonuses or gift cards, or non-monetary, such as recognition, feedback, or career development. The key is to make them relevant, timely, and fair for your employees and your budget.
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For our employee referral program to shine, we need to invest in it. Think CocaCola– it's not just about ads; people love it because it tastes good. Similarly, for our company, it's not just about looking good outside. We must genuinely make it a great place to work. When employees love their job, they'll naturally tell others about it. Let's focus on making our company a fantastic workplace. This way, employees will naturally become advocates, spreading the word without needing all the details about the referral program.
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Offering an incentive for your employees to refer the right candidate is undoubtedly a brilliant strategy. However, to ensure its credibility and value, it is always better to provide the incentive after the probationary period. This approach will ensure the probability of having the appropriate fit and, secondly, will keep the referral focused solely on searching for the right person.
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Often companies default to monetary incentives. When it comes to a referral program, employees are often willing to refer their friends if they have a strong engagement with the company. In this case, look at offering credit to a company store for swag (shirts, jackets, mugs, etc.) or experiences. It is also helpful to create a scorecard and create some healthy competition of who has referred the most hires. This encourages a focus on candidate quality.
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You should always ask what the referrers want/ need. Be creative but make it meanigful. One example is tying it up with a charity or foundation. For every successful referral they will also help a charity. Recognize also the top referrers of the month or the quarter. Another tip is the incentive should be based on the level of the role. Example, a higher reward is given if you successfully referrered an executive/director.
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Just employee referral recognition will not attract the top talent through this process. We should look for combining scenario based hiring along with employee referral schemes. Communicating about the upcoming hiring plan to people managers and employees will bring in Talent hiring alertness across. And staying informally connected with those Talent Leads will help to reengage whenever there is a new opening. In this way you are creating a talent attraction ecosystem.
Another reason why your referral program might not be working is because it's too complicated or cumbersome for your employees and candidates. You want to make it easy for them to submit and track referrals, as well as to follow up and provide feedback. Use a referral software or platform that integrates with your existing systems and allows you to automate and streamline the process. Provide clear guidelines and instructions for your employees and candidates on how to use the tool and what to expect from the process.
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Start on the first day! During the onboarding process provide a one-page document that outlines the referral process inclusive of the link or the primary point of contact for referrals, rules of engagement, the dollar amount per referred hire, and a timeline on when to follow up. There should also be SLA's put in place for two reasons: 1. So that the referrer can share an estimated timeline on when the recruiter/team will reach out. 2. So that there is accountability. While these are just a couple of process improvement items to consider, it is a positive step in the right direction to build out an engaging referral program.
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Ich denke, das ist der Grund, warum viele Mitarbeiterempfehlungsprogramme nicht funktionieren. Mein Motto ist: Keep it short and simple. Kein Mitarbeiter will 100 Details über die Person, die er empfiehlt eintragen. Mein Vorschlag ist, dass man sich an das ATS anbindet und dort nur die notwendigen Angaben abfragt wie Name, Telefonnummer, Bereich oder auch einfach Felder, wo man auswählen kann und nicht viel selber schreiben muss. Das nimmt die Hürde und motiviert auch die Mitarbeiter, wenn es nur 30 Sekunden statt 5 Minuten dauert. Der Recruiter kann dann in einem kurzen Kennenlerngespräch alle Informationen direkt vom Bewerber erfragen.
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Referrals work best when it’s for your own team - the bonus will not matter a lot when one can vouch for someone’s performance and has closely worked with the person. Hence simplifying the process of referrals along with taking immediate action post referral is shared is key. For a referral, the best result would be either to work with the person on the same team or getting the feeling of finding the right person for the right job.
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It is a taxable bonus, so make sure it is a large enough take home incentive to the internal employees! Instead of a lump sum, make it a 3, 6, 9, 12 month bonus, increased per jump. As long as the referred sticks around, the better the bonus.
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Usual reasons why employee referrals become ineffective is because its just too complicated, making employees feeling its just waste of time. To make it more attractive, make more promotions on internal websites about success rates and stories.
Finally, you need to promote and celebrate your referral program to keep it top of mind and generate enthusiasm among your employees and candidates. Use different channels and methods to communicate the benefits and success stories of your referral program, such as newsletters, social media, meetings, or events. Recognize and thank your employees who refer candidates, as well as the candidates who accept your offers. Showcase the impact and value of referrals on your organization's growth and culture.
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To elevate your employee referral program, think about ways to increase visibility and promote the program internally. Begin by creating compelling promotional materials that highlight the benefits of the program, using visuals and success stories to make it enticing. Leverage internal communication channels, such as company newsletters, intranet, and team meetings, to consistently promote the program. Introduce periodic challenges or contests to spur friendly competition among employees, encouraging them to actively participate in the referral program. Implement a recognition system, publicly acknowledging and rewarding employees who make successful referrals to reinforce the value of their contributions!
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Promote your referral program actively and celebrate success stories. Feature the accomplishments of referred hires, acknowledging both the referring employee and the new team member. Positive reinforcement boosts morale and encourages continued participation.
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This is critical- First we must promote the referral process and then we must celebrate everyone who refers anyone, NOT just those that are hired. I often find that most employees have heard about the companies "referral program" but only when they were going onboarding; this message needs to be ongoing and repeated. Additionally, 1 "size" perk may not hit everyone's needs. So how about trying a few different perks not just $$$, maybe an hour off, a donation to their favorite charity. Asking the referrer "what" would they like. As long as it is benefical to them; you will see more referrals. Get creative with the referral incentives
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To encourage participation in the referral program it is key to celebrate referral hires and if possible reward the staff who made these. Even if a referral does not get hired it is important to acknowledge the referral with the staff and thank them for their engagement. My recommendation is to have a tiered reward system such that any referral who is invited to participate in the selection process would result in a reward and acknowledgement to the staff who made the referral. A bigger reward for a hire will make sure that employees are engaged and rewarded for their work as employer brand ambassadors. Just as TA professionals take pride in the great candidates they find for an organization so will your employees.
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A referral program only works if people know about it! Burying it in company newsletters or in the new employee manual doesn't find talent! Promote your program by recognizing and celebrating others who have taken advantage of it. Demonstrating the existing use of the program and the value it has added to your organization incentivizes others to want to participate!
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Consider why the referrals aren't coming in - are the rewards not worthwhile? Is the culture toxic and people don't want to expose their friends to that? Are you promoting the program enough? These are just a few of the top considerations. It is also critical to respond to every referral that you receive, even if it's not a fit! Let the employee know that you are appreciative of their referral. When employees refer people and they don't receive any feedback or response, it tells them that the recruitment team isn't actually serious about referrals - and they will stop sending them. As with most things in life - communication is key.
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If the referrals are not coming as frequently or in volume you expect, figure out why employees are being hesitant. Make tweaks/changes in the policy based on the feedback. Also important to remember that your culture & work (alongwith perks/benefits) are the main factors so ensure that they are not compromised upon. Also to note that many employees need that extra push/reminders so have the frequency of referral policy increase.
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Anytime and anywhere, referrals are always the key strength of any organization. This is to bring in a high conversation ratio from the offer to the onboarding stage and get more passive job seekers. And the employee referral program is one of the best recruitment channels.
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If the existing program is not attracting talent or in other words not motivating the current team to bring in their friends and colleagues… then there may be two fold issues here 1 ) the existing employees are not motivated to work or feel lower motivation in the company 2) the referral program is not well understood or employees feel it’s not going to be rewarding for them
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If the referrals are not coming as frequently or in volume you expect, figure out why employees are being hesitant. Make tweaks/changes in the policy based on the feedback. Also important to remember that your culture & work (alongwith perks/benefits) are the main factors so ensure that they are not compromised upon. Also to note that many employees need that extra push/reminders so have the frequency of referral policy increase.