Conventional wisdom may have you thinking the best way to fill your open positions is by advertising. And while career sites and job boards certainly have their place, it turns out that employee referrals may be your most effective play when it comes to hiring top candidates.
A recent report from Jobvite, a recruiting technology firm, supports the idea that employee referrals generate a greater percentage of hires and that these individuals remain with their firms longer. Using aggregated data from 2007 to present from its 600+ company client base, including Whole Foods Market, Starbucks Coffee Company and Zappos.com, the latest edition of Jobvite Index documents some eye-opening stats to consider:
- Job boards (42.9%) and career sites (32.1%) represent the overwhelming majority of applicants for Jobvite customers, with employee referrals clocking in at only 6.9%
- When it comes to hiring, however, employee referrals result in a whopping 39.9% of all hires. Also worth noting: employee referrals are hired 55% faster—saving precious down time and wasted recruitment effort.
- Candidates hired through referrals stay longer: 46% of these individuals were still at their firms three years later (compared to just 14% of those hired via job boards).
The Takeaway: If you don't currently have an employee referral program, consider starting one! It could be one of the savviest investments you make when you're looking to hire.
And for a review of other key HR tasks related to hiring, performance reviews, and discipline, be sure to check out our "Must-Do" HR Checklist, available free for download.
Image Credit: Victor1558