How to Grow Your Company Through Employee Referrals

For employers seeking to grow their business, turnover can be the most detrimental obstacle in the process. The total cost of losing an employee can range from tens of thousands of dollars to roughly two times the employee’s annual salary. By creating a successful employee referral program, your company can help combat these costs. In order to do this, Skywalk Group offers these important guidelines:

Step 1: Understand the Benefits of Employee Referrals

When surveying employers, LinkedIn Talent Solutions found that 39 percent of respondents agreed that quality of hire is the most valuable performance metric when measuring the success of their recruitment. Of that, 32 percent said that employee referral programs are the top source of quality hires.

Step 2: Enforcing a Positive Work Environment

Utilizing an employee referral program not only saves time and money during recruitment but it reinforces your company’s culture. Your employees are an advantageous resource when it comes to finding outside talent. Investing in them through benefits, additional training and advancement opportunities, as well as employee recognition is key to creating a successful work environment. This benefits both the company and the employees. Due to this, they are eager to recommend open job positions. Then, when they refer a potential new lead, that candidate is already motivated about the company’s goal before the interview has even taken place.

Step 3: Implement an Employee Referral Program

To construct a successful employee referral program, it does not simply come down to a payout bonus. The employees need to be made aware of all hiring opportunities in the company and then updated on the process throughout the year. For the employee reward, bonuses are the typical incentive. However, it is beneficial to speak with your employees about other possible rewards as well, to find out what motivates them. Above all, the referral program must be easy to use for both the applicant and the employee. Incorporate online applications which include a referral section and prioritize communication with referred candidates. This way, even if that candidate does not work out, the employee is not dissuaded from making recommendations in the future

Investing in your employees is a vital step in growing your business. By incorporating a referral program, you can attract new talent while creating a constructive and positive workplace environment. To learn more about how you can avoid turnover cost and enhance your business, Skywalk Group offers employee training and development, as well as human resources management. Contact us today to find out how we can benefit your team.