{"id":50001,"date":"2021-05-15T19:42:19","date_gmt":"2021-05-16T02:42:19","guid":{"rendered":"\/us\/en\/blog\/?p=50001"},"modified":"2023-11-20T23:15:47","modified_gmt":"2023-11-21T07:15:47","slug":"creating-an-employee-referral-program-to-get-the-best-talent-for-your-team","status":"publish","type":"post","link":"\/us\/en\/blog\/creating-an-employee-referral-program-to-get-the-best-talent-for-your-team\/","title":{"rendered":"Creating an employee referral program to get the best talent for your team"},"content":{"rendered":"<p><b>Highlights:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An employee referral program encourages employees to refer qualified candidates for the job.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employee referral programs increase the likelihood of finding top talent while reducing the cost of hiring and onboarding.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Organizations can easily launch a referral program by convincing upper management, setting goals, identifying incentives, and using a referral program software. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most recruiters know that it can be difficult to find the right talent for the position. Around <\/span><a href=\"https:\/\/content.randstadsourceright.com\/top-10-hr-trends-for-2021\"><span style=\"font-weight: 400;\">40% of human capital leaders<\/span><\/a><span style=\"font-weight: 400;\"> believe that their organization has struggled with talent scarcity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, every organization wants to attract the best employees to succeed in the long term. But it can be difficult to stand out among numerous organizations in job ads and recruitment sites.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good news is that creating an effective employee referral program is one way you can attract the best possible candidates for your team.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How to launch your own employee referral program? Here, we\u2019ll introduce you to all the steps that you need to know.\u00a0<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">What is an employee referral program?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An employee referral program is a recruiting strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here, employers encourage their employees to refer qualified candidates for the job. In exchange, employees can receive rewards for successfully referring a friend,\u00a0 a family member, or anyone to a specific role.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><span style=\"font-weight: 400;\">Immutable\u2019s employee referral program<\/span><span style=\"font-weight: 400;\"> lets people earn a referral bonus worth $2,000 when their referral gets hired and stays for six months.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-50002\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/11\/Immutable.png\" alt=\"\" width=\"846\" height=\"364\" \/><\/p>\n<p style=\"text-align: center;\"><em>(Image Source: <a href=\"https:\/\/www.immutable.com\/\">Immutable.com<\/a>)<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Employee referral programs can bring a lot of perks to your organization. Since candidates are more likely to trust the advice of their friends,\u00a0 family, or someone they know personally, they are more likely to accept the offer and have a positive perception of the business.\u00a0<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">What are the benefits of an employee referral program?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some of the notable perks that you need to consider when launching your referral program.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Referrals increase the likelihood of finding capable hires<\/span><\/h3>\n<div class=\"quote heading h3 blockquote-author\"><span style=\"font-weight: 400;\">Current employees are familiar with the job role and company culture. They understand the organization\u2019s mission and values, so they know the ideal type of employee that would fit in with the team. Hence, referrals increase the likelihood of <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/hire-remote-employees\/\"><span style=\"font-weight: 400;\">recruiting talented candidates <\/span><\/a><span style=\"font-weight: 400;\">that can perform well and get the job done.<\/span><\/div>\n<h3 class=\"quote heading h3 blockquote-author\"><span style=\"font-weight: 400;\">Referrals have higher retention\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Referred employees have <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/employee-retention-strategies\/\"><span style=\"font-weight: 400;\">a higher retention rate<\/span><\/a><span style=\"font-weight: 400;\"> because they are more familiar with the culture and values of the organization. After all, they have been evaluated by their peers who work in your organization prior to submitting their application. They may also be recommended to the job because the referrer knows that they would fit right in. In fact, <\/span><a href=\"https:\/\/clutch.co\/hr\/resources\/5-employee-referral-program-strategies-hire-top-talent\"><span style=\"font-weight: 400;\">49% of companies with referral programs<\/span><\/a><span style=\"font-weight: 400;\"> found that referred employees stay at the company longer.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Referrals are a cost-effective recruitment strategy\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Employee referral programs can be cost-effective.\u00a0 According to <\/span><a href=\"https:\/\/www.prevuehr.com\/resources\/insights\/sourcing-through-networks-why-employee-referral-is-the-new-way-to-hire\/\"><span style=\"font-weight: 400;\">Prevue HR<\/span><\/a><span style=\"font-weight: 400;\">, hiring through referrals is 55% faster. By empowering employees to help source candidates, companies won\u2019t need to rely too heavily on recruitment specialists. They don\u2019t spend too much time and resources vetting resumes from jobseeker database services. Due to the reduced time to hire and improved productivity, organizations reduce costs for talent acquisition.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Referrals make it easier to fill roles\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sometimes the job requires a specific talent or skill that is limited in the market. You won\u2019t be able to find the right candidates easily through job boards or recruitment websites. However, employees are likely acquainted with people equipped with rare skills in their professional network.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, mobile app developers may have attended conferences and networking events with like-minded professionals. While you may have a hard time comparing resumes and finding the right candidate, they may already know qualified professionals who can fill in for the role.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Referrals bolster employee engagement\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An employee referral program gives companies an opportunity to engage with their employees. After all, employees have the ability to recommend highly qualified candidates for their team or department\u2014and get the credit for it too.<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">How do employee referral programs work?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Much like a <\/span><a href=\"https:\/\/www.referralcandy.com\/blog\/47-referral-programs\/\"><span style=\"font-weight: 400;\">referral program for retail stores<\/span><\/a><span style=\"font-weight: 400;\">, employees that refer people get incentives or rewards. These referral bonuses are usually cash incentives that cost <\/span><a href=\"https:\/\/resources.workable.com\/stories-and-insights\/employee-referral-bonus\"><span style=\"font-weight: 400;\">$1,000 to $10,000<\/span><\/a><span style=\"font-weight: 400;\">. However, other companies may offer gadgets, giveaways, and vacation experiences as potential rewards.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reward is usually given after the referred employee is hired for a full-time role. Some employee referral programs give tiered rewards like offering 50% of the reward when the candidate passes the interview. Then, the other 50% is offered after the referred employee remains with the company for 90 days.\u00a0<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">How to create an employee referral program<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To start off, here\u2019s the step-by-step process you can take for launching your own employee referral program.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Make it simple<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To boost the participation rate, the referral process must be clear and direct. Let participants know the incentives, the step-by-step process, and how they can get their promised reward.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We highly recommend <a href=\"https:\/\/referralrock.com\/\">using a referral program software<\/a> that can seamlessly onboard employees and their referred candidates. An alternative option is to create an online form where people can submit the necessary details and resumes of their referrals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also give employees some recruitment resources such as employee testimonials, company achievements, and details on organizational benefits. Keep the <\/span><a href=\"https:\/\/sixads.net\/blog\/how-to-create-about-us-page-ecommerce-store\/\"><span style=\"font-weight: 400;\">\u201cabout us\u201d page<\/span><\/a><span style=\"font-weight: 400;\"> on your website updated and share your company\u2019s vision and values there. These can help them convince their personal network to apply for the job and explain the company\u2019s mission and values.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><a href=\"https:\/\/help.smartrecruiters.com\/Interviewing_and_Hiring\/Referrals\/Make_a_referral\"><span style=\"font-weight: 400;\">Smartrecruiters<\/span><\/a><span style=\"font-weight: 400;\"> has a dedicated page for referral program instructions. This way, employees and their friends know how to make a successful referral.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-50003\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/11\/Smart-Recruiter.png\" alt=\"\" width=\"850\" height=\"423\" \/><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Determine goals and objectives<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">How much will your referral program contribute to the organization? How can you tell whether the budget allocated for referral programs is worth it? Determine the appropriate metrics for monitoring the success of your employee referral program. Set a reasonable time limit for achieving these goals so that the employees have enough time to find referrals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some sample goals and objectives that you can consider:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get at least 15% of employees to participate in the employee referral program\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get 30% more qualified candidates for available positions\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decrease time to hire by 2 weeks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Boost employee retention rate by 25%\u00a0<\/span><\/li>\n<\/ul>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Identify incentives<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Of course, people won\u2019t participate in the referral program if the incentives aren\u2019t promising.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brainstorm potential rewards that can motivate employees such as referral bonuses, valuable prizes, or more leave credits. If you have a limited budget, you can host giveaways or offer interesting rewards (i.e. free spa day or <\/span><a href=\"https:\/\/www.candybar.co\/blog\/best-restaurant-names\/\"><span style=\"font-weight: 400;\">restaurant promo<\/span><\/a><span style=\"font-weight: 400;\">).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before finalizing your referral reward, we highly recommend getting in touch with employees and asking their opinions. That way, you won\u2019t waste money on expensive rewards that won\u2019t generate results. An <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/employee-engagement-apps\/\"><span style=\"font-weight: 400;\">employee engagement tool<\/span><\/a><span style=\"font-weight: 400;\"> can help make the complex process of soliciting and structuring employee feedback quite easy. You may also be able to discover affordable rewards upon receiving their feedback.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, San Mateo County is offering employees a <\/span><a href=\"https:\/\/hr.smcgov.org\/employee-referral-program\"><span style=\"font-weight: 400;\">$500 incentive<\/span><\/a><span style=\"font-weight: 400;\"> to refer qualified candidates. Since cash is practical and useful, these referral bonuses may motivate employees to refer people in their network.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-50004\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/11\/SMCGov-1024x195.png\" alt=\"\" width=\"1024\" height=\"195\" \/><\/p>\n<p style=\"text-align: center;\"><em>(Image Source: <a href=\"https:\/\/hr.smcgov.org\/employee-referral-program\">smcgov.org<\/a>)<\/em><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Announce the program to the organization<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Employees won\u2019t join your referral program if they don\u2019t know it exists. As such, you\u2019ll need to announce its launch to everyone in the organization.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can create a PDF file, a social media post, or a video to spread information about it. You can also <\/span><a href=\"https:\/\/www.ringcentral.com\/webinar-software.html#ring-s\"><span style=\"font-weight: 400;\">host a webinar<\/span><\/a><span style=\"font-weight: 400;\"> to explain the referral program instructions. Post the reference materials on the internal site or mass email everyone on the team.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><span style=\"font-weight: 400;\">Wellstar<\/span><span style=\"font-weight: 400;\"> created an Instagram post to announce the launch of their employee referral program.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-50005\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/11\/IG.png\" alt=\"\" width=\"576\" height=\"367\" \/><\/p>\n<p style=\"text-align: center;\">(Image Source: <a href=\"https:\/\/www.instagram.com\/wellstarcareers\/?hl=en\">Wellstar&#8217;s Instagram Page<\/a>)<\/p>\n<p><span style=\"font-weight: 400;\">To keep it in the back of people\u2019s minds, create a referral program poster and display it in areas where people frequent such as the break room or meeting room. This is a subtle way you can remind people to keep recommending people in their network.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Make referrals a part of your company culture\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your referral program shouldn\u2019t feel like a mere extra to your recruitment efforts. Rather, you should include it in your company\u2019s culture and onboarding progress.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Host recruitment happy hours or get-togethers where employees can bring people that they want to refer. This is a great way for recruiters to get to know potential candidates and subtly introduce them to the perks and company culture.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-50006\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/11\/Glip.png\" alt=\"\" width=\"761\" height=\"459\" \/><\/p>\n<p><span style=\"font-weight: 400;\">To stay safe during the pandemic, you can host a virtual event to celebrate the wins of the referral program on an annual or quarterly basis.\u00a0 You can highlight referred employees and express your gratitude to the employees who recommended them. Tell employees the in-depth details that they need to know about the referral program. <\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\">Ready to create your own employee referral program?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An employee referral program can have a big impact on your recruitment efforts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your employees likely have a network of like-minded professionals. They\u2019re not only qualified, but they also align with your brand\u2019s values and culture.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Launching your own employee referral program is easy with the proper resources and tools. With referral program software, you can even build and launch your own referral program within minutes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s hoping that you\u2019ll be able to attract and recruit top talent faster and simpler. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights: An employee referral program encourages employees to refer qualified candidates for the job. Employee referral programs increase the likelihood of finding top talent while reducing the cost of hiring and onboarding.\u00a0 Organizations can easily launch a referral program by convincing upper management, setting goals, identifying incentives, and using a referral program software. Most recruiters &#8230;<\/p>\n","protected":false},"author":29,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-50001","post","type-post","status-publish","format-standard","hentry","category-customer-experience"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Creating an employee referral program to get the best talent for your team | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"Highlights: An employee referral program encourages employees to refer qualified candidates for the job. 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