The Value Of Referrals
Written by Geoff Newman on 5/8/2012
When it comes to hiring, it has been shown repeatedly that job referrals are one of the best ways to find new employees. Recent recruitment research has shown that 44 per cent of all new hires are employee referrals and that employee referrals are likely to get hired 55 per cent faster than people unknown to anyone within the company. When asked HR executives replied that referrals are the number one source for finding quality candidates, so even in this technologically-drive world, finding new employees can be as simple as speaking to the ones you all ready have working at your company.
Speaking about the research, an industry expert said, “Employee referrals help employers find new talent by broadening the reach for any opening. While an HR manager often has more than 500 contacts, getting more staff members involved in hiring exponentially improves the process. For example, if a company has 100 employees and each employee has an average social network of 150 friends, the potential reach for an open position becomes 15,000 people.”
If a company is failing to focus on employee referrals then they are missing the possibility of tapping in to a huge market resource. Future workforces can be built around job referrals alone and it offers a less time intensive way of finding the employees that you need to ft with your company’s image and ethos. As many as 69 per cent of companies now offer bonuses to employees for referring new staff.