Of the many things that appear to be a challenge for employers, recruiting the right candidate for a particular job opening could very well be the most difficult. It takes at least a couple of weeks for a company to promote an open job position with the help of their HR department. But their work does not end there. Post the closing of the recruitment process, the company also has to filter through the hundreds, or sometimes thousands, of applications that have been submitted by potential candidates. All this effort goes into the recruitment process to find the perfect person for that one job!
After all these efforts, the company is also given the task of creating a welcoming environment for the potential candidates to make them feel right at home! Well, the great thing about a well-structured referral marketing strategy in a company helps brilliantly when it comes to reducing the effort and time that goes into the hiring process as a whole. If you have employees who genuinely are fond of the job they are doing, then you will have no problem attracting potential hires with the help of those employees!
Essentially, any good employee referral program ends up doing half the work of the recruitment process flawlessly. Employees who enrol under such referral marketing programs help in referring potential candidates to the company, keeping in mind the job position that needs to be filled and the work culture of the company.
There are of course quite a few benefits of implementing a well-structured referral incentive program. Have a look at some of them here.
Time is always of the essence, especially for big companies who work on deadlines. More often than not, a closely monitored recruiting process takes a lot of time to come to fruition, however, this is definitely something that the right referral marketing strategy can change. A referral process essentially enables a company’s employees to reach out to their peer group in search of potential candidates. Through this, a company can safely assume that the employee knows the candidate(s) in question well enough, to approach them for the job.
As a result of this, the time that it might take HR to screen and eliminate candidates who are not suited for the job goes down to a bare minimum. A company, of course, has to be sure to brief the employees, who are a part of the employee referral program, about the kind of candidates they want and don’t want. This will in turn help the employee to zero in on a few people from their peer group instead of approaching a majority of them, further reducing the recruiting time.
Where there is more time being used, there is more money as well. Time is money! So it will only be safe to assume that if a referral program helps save time in job search, it also helps save money for the company! Imagine the money a company might funnel into advertising when it comes to broadcasting job openings! Your employees, as a part of the referral incentive program, become the company’s advertisers, thus cutting down on the costs drastically. Even if one ends up rewarding the employees for having worked hard in the recruitment process, a company will still end up saving quite a lot as far as the recruitment process is concerned.
In such a case, the cost that a company gives to an outside recruiter or a third party, like websites, can also be cut, since no one knows about your work environment better than your current employees anyway!
Employees feel encouraged:
When you provide the employees with means to help bring new people onboard the company from within their peer group, you also instill in them a feeling of confidence. The employees in turn feel like they are truly being valued and made a genuine part of the company functioning, helping create a more engaging workforce in the long run.
Since most employee referral marketing programs offer employees a reward to bring on new recruits, they feel valued and trusted. What adds to this feeling is if their referral gets recruited as a part of the company. To top that off, referred candidates, who eventually get employed, feel more at ease in the company as they already know another person inside the company. This helps in building better bonds among the many employees and encourages them to be more active as well.
Retain the recruits
There are many things that a job seeker looks for in a particular company when they are applying for a job there. Sure the remuneration and the work itself take top priority, but there is one other thing that employees can be very particular about; the work environment and culture of the company.
Under the referral incentive program, however, a company can rest assured that its employees can put across the kind of culture that they work into their peer group in the best manner possible. This in turn helps the referrals understand the kind of work culture they would be signing up for when they apply for the referred job. If a candidate from among the peer group of an employee is willing to apply for the job opening, a company can safely assume that they are happy with the employee’s review of the company environment and know what they are signing up for! As a result, such potential candidates, if hired, have a higher chance of sticking with the company for a longer period.
Referral marketing is truly a powerful tool in the arsenal of any company that is looking to hire new people to their team. One just has to ensure that the referral strategy in place is well structured and the current employees feel happy about helping the company grow by referring them to their peers!