Is your Employee Referral Program as good as you think
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TOP TEN REASONS YOUR REFERRAL PROGRAM MIGHT NOT BE AWESOME 10) Most of your referrals have quit. 9) Your CEO just announced that telecommuting is no longer an option. 8) Your company is outsourcing recruiting. 7) Your attrition rate is increasing and company revenue is decreasing. 6) You give Blockbuster gift certificates as a referral award. 5) Your company only pays a fee if your referral stays for a year. 4) Your competitors are paying higher external referral fees to your employees. 3) Your company is on a hiring freeze. 2) Your recruiting team is too busy to follow up with referrals. 1) Every employee thinks their referral is a “Must Hire” or “Rock Star.” Is your Employee Referral Program as good as you think
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Why This Topic? • Finding great talent is harder than ever • Referrals deliver talented candidates • Generate low cost, high quality pipeline • Speed up the recruitment process
• Yield higher productivity workers
Is your Employee Referral Program as good as you think
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Current Scenario • Current State of Employee Referrals
• Employee Referral Pitfalls • Trends and Best Practices • Next Step Recommendations
Is your Employee Referral Program as good as you think
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Five Facts About Employee Referrals Referred applicants:
1. More likely to be offered and accept job offers 2. Achieve higher pre-job assessment scores 3. Are a better fit vs. non-referred 4. More productive 5. Less likely to quit
Source: “The Facts About Referrals: Toward an Understanding of Employee Referral Networks� - Stephen Burksy, Bo Cowgill, Mitchell Hoffman, Michael Housman; December 11, 2013 Is your Employee Referral Program as good as you think
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Programmatic Referral Challenges: Standard Rewards
Less Targeting & Personalization
Failure to Acknowledge
Lack of Change
Lack of Tracking & CPI
Effective Sourcing of High Quality Talent
Spam Issues
No Source Linkage
Is your Employee Referral Program as good as you think
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Employee Referrals: Pitfalls 1.
Being slow or non-responsive with referrals
2.
Delaying payment
3.
Communicating too much; e.g., spam
4. Failing to update, target, refresh program 5. Failing to track results
What are you going to do differently?
6. Lame rewards 7.
Using a confusing, difficult or manual process
Is your Employee Referral Program as good as you think
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Best Practices in Employee Referral Programs 1
•Streamline and simplify referral programs
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•Target communication; keep the referrer in the loop
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•Flex terms and program targets
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•Close the loop with the candidate and the referrer
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•Manage top referrals; build a pipeline
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•Seek new hire referrals
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•Track, recognize and reward sources
Is your Employee Referral Program as good as you think
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Some Adjustments Are Simple . . . Sample Target Communication Date: XX/XX/XXXX Dear XX: I would like to personally thank you for your referral of XXXX for the position of XXXX. Our employee referrals are the most reliable way we find quality hires, and we truly appreciate your efforts in helping us attract Manhattan's most important asset-our people. We look forward to meeting XXXX, and we encourage you to continue to be on the lookout for your future co-workers! Sincerely,
Is your Employee Referral Program as good as you think
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Source
Candidates
Hires
Hire Ratio
222
58
26%
302
41
14%
College
222
120
54%
Job Fair
23
1
4%
Staffing
5
1
2%
Employee Referral
Recruiting
Agency
Is your Employee Referral Program as good as you think
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Next Step Recommendations • Realistically evaluate the current state of your business: Financials / stability Culture Growth Outlook Pay / Perks
• Develop an elevator speech and share it broadly • Align your referral program with your business strategy
Is your Employee Referral Program as good as you think
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