Not all recruitment practices are created equally, and few offer a win-win-win opportunity like a well-run employee referral program. But before drafting a company-wide email, it is important to clearly identify and state your objectives to ensure you and your employees are working towards the same goal. As galvanizing as this strategy can be, if poorly organized, the results can do more harm than good. Let’s look at what you’ll want to consider in your employee referral program to generate the highest quality leads….

The Basics: Understanding Employee Referral Programs

An Employee Referral Program is an incentivized strategy that encourages existing employees to recommend qualified candidates for open positions. Incentives range from bonuses to additional vacation days that “pay out” for a successful hire. At its core, employee referral programs capitalize on the idea that current employees are well-positioned to identify individuals who not only possess the necessary skills and experience but also align with the company culture – who else would know better than?

A well-run employee referral program leads to quality hires who naturally fit within your company culture, produces buy-in from current employees who now have a say in building and maintaining company culture, and is highly cost-effective, reducing the overall time, cost, and energy put into finding strong candidates.

Manage Expectations & Relationships

Leveraging employee referrals into quality hires seems simple enough on the surface, but a haphazard strategy can lead to a string of unqualified referrals and reduce current employee buy-in. Take the time to clearly identify who you are looking for, keeping in mind that each referral is a relationship your employee values; maintain a fair and transparent process for the referred candidates. Thank your employees, regardless of results from their referrals – appreciation and acknowledgement can go a long way. Finally, make sure you clearly communicate your incentive program, including when and how incentives will be paid out.

Maximizing Your Employee Referral Program

Now that we’ve covered some basics, let’s look at steps you can implement to yield the best possible results:

Promote the Program: Awareness and understanding are the two most important steps you can take to get the most out of your employee referral program. Remember, most people need 5 or more touchpoints before acting – don’t rely on email alone. Make sure your leadership team is prepared to communicate how the program works with their respective departments, mention it in company meetings, and openly celebrate successful hires from the program.

Offer Appealing Incentives: Monetary incentives can be great motivators, but these are not the only ones to consider. Reflect on what your employees value: is it recognition? PTO? A customized gift? Make sure your incentives align with your employees’ values.

Simplify, Simplify, Simplify: We’ve all filled out forms that seem to drag on. For an employee referral program to be successful, you want to minimize the barriers to entry. Focus on a simple submission process and form to maximize participation.

Measure and Evaluate Performance: Don’t overlook the data, tracking metrics such as referral submission rates, conversion rates, and the quality of hires can help focus efforts, improve your process, or make needed changes. An employee referral program is an excellent strategy to find high quality candidates for your open positions, strengthen your current employees’ buy-in and your company’s culture, and reduce your expenses during the search process.