By Jean Roque, Trupp HR.

Looking for an easy way to ramp up the effectiveness of your company’s hiring activities? Whether managing recruiting in-house, relying on a recruiting agency, or leveraging a recruiting process outsourcing (RPO) firm, an employee referral program is a low-cost, highly impactful method for taking your company’s recruiting to the next level.

1. Optimizes alignment with your company culture and work environment

Employees are the most effective ambassadors for your employer brand. They understand the company culture and what it takes to succeed in the work environment. Your employees want to work with people who are competent and enjoyable to interact with, which likely aligns well with your company’s recruiting strategy.

2. Increases effectiveness of recruiting activities

Applicants from employee referrals are much more likely to get hired. In fact, on average only 7% of applicants come from employee referrals but almost half of new hires come from these referrals. So, our referral applicants are exponentially more likely to get hired; and, we can infer from the data that these applicants are perceived by employers to be of higher quality than other applicants.

3. Contributes more quickly to your business strategy and needs

Most often, an employer’s job opening represents an eminent or current gap in expertise or available capacity, so filling this gap is a high business priority. Unlike applicants from job boards and career web sites who on average take 39 or 55 days (respectively) to start in their new position, referred applicants start working for you sooner—usually within 29 days.1

4. Increases your return on investment

Employers want employees who are productive, motivated and committed to the success of the organization. That’s why it is helpful to understand that hires from employee referrals stay with your company longer and have greater job satisfaction. In fact, after three years, 47% of referral hires are still with their employers—compared to 14% who were hired from job boards1, which is probably why 82% of employers rated employee referrals above all other sources for generating the best ROI.2


1 “Why Employee Referrals are the Best Source of Hire” by Undercover Recruiter
2 Direct Employers Association