We’re talking about employee referral programs and why they just may work wonders for your business.
As a hiring manager, you may think the best way to fill your open positions is by posting job openings online. And while career sites and job boards certainly have their place, they’re only a part of the picture. It turns out that employee referrals may be one of your most effective options when it comes to hiring top candidates.
A 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 data from its client base of more than 600 companies, such as Whole Foods, Starbucks and Zappos, Jobvite offers up some eye-opening stats.
Job boards and career sites represent the overwhelming majority of applicants for Jobvite customers, with employee referrals clocking in just under 7% of applicants. But, when it comes to hiring, employee referrals result in almost 40% of all hires. It’s also worth noting that referrals are hired 55% faster—saving precious down time and wasted recruitment effort. Finally, candidates hired through referrals stay longer: 46% of these individuals were still at their firms 3 years later, compared to just 14% of those hired via job boards.
So, what’s the takeaway? If you don't currently have an employee referral program, consider starting one! It could be a smart investment that will pay off when you’re ready to hire. To review the data in more detail, visit Jobvite.com.