Think for a moment where your new hires come from. Probably you put out a want ad, or maybe browse LinkedIn for potential candidates. Now think about where your best employees come from. They might be from those sources, or they might be referrals from other employees. Someone an employee refers to you is more likely to stick around. In fact, 47% of referrals stay with a company 3 years or longer.
If you like those statistics, it’s time to start creating an employee referral system that will make it simple for your staff to point you in the direction of qualified future employees.
Step 1: Define What’s In It For Your Staff
People often need a little motivation, and to that end, you need to establish incentives for referrals. If an employee refers someone you end up hiring, will you give her a monetary bonus? An extra few days of vacation time?
The incentive needs to be appealing enough that your staff is eager to uncover your next hire, and yet reasonable enough that it won’t break the bank. Ask yourself: what is it worth to you to find an employee that you know will work hard and give years to your company?
Step 2: Outline the Rules
Just like with any program, you need rules. Will you give that incentive if an employee just refers someone to you and you end up hiring them, or do you want to require that the person has to complete a 90 day trial run before you hand over that bonus?
Make your employee referral network rules clear and easy. Your staff shouldn’t have to jump through hoops to refer someone.
Step 3: Build the System
If your company is big, you should consider building a software platform for employees to submit a potential hire. Otherwise, decide how you’ll get that referral. It could be as simple as an applicant mentioning the employee’s name with their application. Whatever it is, keep it simple!
Step 4: Spread the Word
Once your system is in place, make an announcement to your team, encouraging them to start thinking about their network in terms of who would be a good fit at your company. But don’t stop there. Do what amounts to a marketing campaign to ensure that your staff never forgets about that referral program — or that enticing bonus.
Consider spreading the program beyond your borders to past employees, vendors, customers, and other contacts to cast the widest net possible. Share your program with your social media contacts as well.
Keep everyone motivated by sharing monthly updates on who’s topping the charts on the number of referrals. This will help create a little friendly competition.
Getting your employees in on helping you find the best hires for your company will result in you having better staff and lower turnover.
This article was syndicated from Business 2 Community: 4 Steps to Setting Up an Employee Referral Network
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