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Data-Driven Employee Referrals In Action

Posted by Dominic Barton

29-Apr-2015 11:00:00


The age of the Cloud is upon us, and it means changing the way we use the information therein. It’s not a question of “if” your department will adopt big data practices, but rather “when.” Employee referral programs and social referrals even experience the broad handle big data is quickly gaining throughout the recruiting and HR departments. Currently, only 8% of companies who don’t already have one, plan to put an employee referral program into effect. Tracking your data can help. By sifting through connections, a recruitment platform that uses big data, can boost employee referrals (already the best source of hire).


broadbeantwitter-01 Only 8% of companies who don't have an employee referral program plan to put one into place.



The question is, how does this plethora of information affect the role of employee referral and social referral programs? Big data deepens talent networks intertwined by current employees. Let’s take a look at how these two extremely viable recruiting options work together. Here’s how one organization has merged big data into their employee referral programs. 


ThoughtSpot - Bounty Headhunting

No, not medieval bounty hunting. ThoughtSpot has taken a whole new outlook on rewards for employee referrals. Their headhunting practices use big data to find candidates in their market. ThoughtSpot offers $20,000 to anyone who is connected to a ThoughtSpot employee on LinkedIn (data can help show employees who they’re connected to and create a larger referral pool) and refers a candidate who gets hired. It’s not just a matter of if they get hired. The newly appointed employee must stay with the company for at least 3 months before the reward is distributed. 

This isn’t an uncommon practice among companies who use employee referrals as part of their recruitment effort. In a WorldatWork survey, participants were asked:

“Does your organization typically split the referral bonus payout to the referring employee so that part of the bonus is given upon hire of the person referred (or shortly thereafter) and the remainder of the bonus is given after a set period of time?”

28% answered positively; so ThoughtSpot isn’t the only company that doesn’t entirely (if at all) pay the reward immediately in full. Some organizations reward for the referral and then for the quality of the hire. The average payout time is about 1.5 - 3 months after the team brings on the new hire.  


broadbeantwitter-01 A data-driven employee referral system can lead to a targeted and much more strategic talent pool.




Matching through Technology

Employee referral programs are a popular (and extremely effective) way for employers to find their next best hire. The rise of data-driven employee referrals poses a change. For example, many companies still thrive on their employee referral program, but they have integrated the use of data to augment the system. The technology gathers information from their employee’s social channels to scan for connections that might be fit for an open position within the organization.  Then, encourages their employees to contact these connections. The goal is to make the referral process easy for their employees and more effective for the organization. Leverage data driven referrals to benefit your company with the quality of hires and help your employees find people to add to your team. 

Data and employee referral programs don’t have to work alone. Simultaneously, they grow your talent networks to sustain a deeper candidate pool. Many companies use employee referral programs to find like-minded candidates and decrease recruiting costs. This can all be more effective with big data by screening employee social contacts through sources like LinkedIn and recommending individual employees for employment. Employee referrals can lead to a plethora of candidates, but with the use of data-driven referrals, the field is narrowed, targeted and much more strategic.

Looking to create a cohesive, data-driven employee referral system? Ask about CSP, the Candidate Sourcing Platform that allows your employees to recruit, source and refer, boosting the efficacy of your entire recruiting team!


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Topics: Big Data Conversations with Dominic , Employee Referrals , HR Data , Employee Referral Programs