I think employee referral is one of the most important and cost effective method of recruiting, however, sometimes it gets overlooked by a lot of recruiters and managers and does not get as much importance or coverage as the sign on bonuses, networking, or job postings! A few of the advantages of ER are:
- It is the least costly method of recruiting- does not require any subscription, posting cost, etc. All it needs is aware and happy employees willing to recommend the company to their family and friends and a couple hundred dollars in referral incentives! and voila, you have a great candidate ready to be interviewed!!!
- Takes lesser time to fill the positions- existing employee sends you the referral, probably gives you a completed application, best time to reach the candidate and a synopsis of their work history, work ethic, etc. What else does a recruiter need!
- Gives you an opportunity to recognize and strengthen your relationship with your existing employees-appreciate them, thank them and recognize them for their referral and faith in the company.
- Lower turn over- study suggests candidates that are referred by an existing employee stay longer with the company than a non-referred employee---therefore, helping out with the company's retention startegy as well.
So, all the recruiters out there, get out of your cabins and speak to your top performers and get yourself some referrals!!!
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