Is an Employee Referral Program Right for You?

January 5, 2017
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Employee Referral Programs

Did you know that a significant number of successful hires are candidates who come via employee referral? Did you also know that time to hire may be reduced by as much as 55% when the candidate is referred by one of your employees? Do you consider employee referrals an integral component of your recruiting strategy? Do your employees make referrals? You may be able to reduce overall recruiting costs and reward employees by introducing an employee referral program.

Top-performing employees often associate with other high performing individuals. Your employees know what it takes to be successful at your organization and they also know the strengths and weaknesses of the people in their network. There is a good possibility your employees will recommend someone they know can perform at the level you require and who will be a good fit for your organization.

Things to Consider in Creating an Employee Referral Program

There are some advantages to introducing an employee referral program apart from reduced time to hire and fit with the organization.

  • Improved retention rate for those referred by your employees;
  • Brings in high-quality candidates; and
  • It can be an avenue to reach candidates for specialized and hard-to-fill positions.

There are also some disadvantages to consider when creating your plan.

  • It can alienate others in the referring employee’s work group if there is any perception of favoritism;
  • There can be potential impacts to diversity hiring efforts that can lead to claims of discrimination if EEO or AAP are not considered consistently in hiring decisions; and
  • It can limit creativity if the referring employee and the hired employee think too much alike.

Mercer PeoplePro can help

Think an employee referral program is right for your organization? Schedule an appointment today and enjoy a two-hour consultation FREE. To set up your free consultation, visit — we’re standing by and ready to help.
Is an Employee Referral Program Right for You?
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