- Hi there.
In today's bite,
we'll highlight some of the benefits of employee referrals
and how they can improve organizational outcomes.
Let's dive right in.
Employee referrals can add substantial value
to your organizations, and as a consequence,
they are on the rise,
all the more reason to get started
with an employee referral program
if you haven't done so yet.
All right, first thing's first though.
Why do employee referrals work?
Let's be honest.
If a colleague says he or she knows the perfect candidate
to fill that position
you so desperately need to find someone for, what do you do?
Chances are, you invite them for an interview straight away,
and as the biased human beings we are,
you may see the referred candidate in a more positive light.
After all, the fact that he or she comes recommended
means they've already been vetted, right?
Yes.
As weird as this may seem, in a way,
referrals have been preselected by the simple fact
that if your current employees weren't convinced
they would be a good fit,
they wouldn't have made the recommendation.
Of course, this is in no way a data-driven
or objective selection method, and yet, it works.
Research shows that new hires
that come via an employee referral program
are more likely to stay with your company.
It also shows that referred employees start their job sooner
than hires from other sources,
and that they tend to be fully operational faster.
Apart from these research-based findings,
there is a myriad of other reasons
why employee referrals work.
Let's go through the most relevant ones.
Number one: referrals are a better culture fit.
Again, if your employees thought their referral wouldn't be
a good fit, both for the job and for your company culture,
they wouldn't put them forward as a potential candidate.
As such, your staff preselects the candidates for you,
and who knows better what your company culture is like
and what type of person it takes
to excel in your organization than your current employees?
Besides, an employee that refers a candidate
will want to make sure
they only present the best possible person for the job
because they'll personally feel responsible
for the success of the referral in the company.
Number two: they are more engaged.
Since referrals are more likely to be a good culture fit,
they'll probably feel at home right away.
They'll get along well with your other employees
because they'll know at least one person already
who will introduce them to the rest of the team
and show them the ropes.
Number three: referred employees are happier,
less likely to leave, more productive, you name it.
As a logical result, referred employees are happier,
less likely to leave the company prematurely,
and more productive than people who've been hired
via a different source.
Needless to say,
this can drastically improve your quality of hire
and the organizational performance overall.
That's it for today's bite,
in which you've learned what the benefits
of employee referral programs are
and how they can improve organizational outcomes.
Stay tuned for our next bite
in which you'll learn what elements
every successful employee referral program should include.
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remember to subscribe so you can always stay up-to-date
with our Learning Bites,
and if you liked this video, please like and share it,
and I'll see you soon in our next Learning Bite.
(bold music)