Want to give your recruiting a boost? Then look to the desk nearest to you. If you work at a company filled with talented people, it’s likely that many of your employees would have someone in mind if you asked them “Do you know anyone who could fill this role?” And as the numbers show, employee-driven recruiting has a multitude of benefits that could give your recruiting the boost it may need.
It’s Better For Efficiency
Hiring employees based on referral can get you results before your new hire even begins their first day. Referrals cut through a lot of the excess of the hiring process and are also one of the most reliable ways to ensure you have a good employee on your hands. Currently, referrals account for 6% of the candidates applying to jobs but make up between 30 and 50% of the hires. So when your employee brings someone in on their recommendation, they’re more likely than most candidates to be a fit for the job.
There’s also a good chance they’ll go through the process a lot more quickly. SHRM reports that referred employees can reduce time-to-hire by up to 55%. This makes sense, since referred job candidates don’t have to go through as much sourcing and vetting as other kinds of candidates. So not only are referred candidates more reliable, they’re faster, too.
It’s Better For Productivity
A more efficient process doesn’t always lead to better results, but that’s the case with referrals. Studies have shown that referred employees are more productive than their non-referred counterparts. So not only do you get to hire employees faster, you get better employees as well!
There’s also another results-oriented benefit of hiring employee referrals: they’re more creative. Referred employees are 53% more likely to innovate at work than non-referrals, which means that not only are they accomplishing the tasks assigned to them, they’re thinking about new ways to get things done every day.
These two aspects of their work ethic make referred employees one of the best bets in hiring, not just because you’ll hire them more easily, but because they’ll also make working easier.
It’s Better For Retention
Your referred hires are not only more engaged, but will stick around longer, too. Research shows that referred hires have a 45% retention rate after two years. This makes employee referrals one of the best ways to ensure employees like their job, which leads to engagement, which then leads to retention. This means you save money on voluntary turnover as well, since you won’t have to train another new hire right away.
You’re also less likely to get rid of them since most referrals come from someone who can vouch for their skills on the job, their attitude towards work, and act as a de facto mentor in every aspect of the company the new hire needs to know. So not only will your referred employees produce better results, they’ll produce them for much longer, too.
Of course, there’s always a chance that when you ask your employees if they know someone who could help fill your next position, they’ll come up short. But all you lose then is a few seconds of conversation. And with the gains of employee referrals as plentiful and rewarding as they are, it never hurts to ask, does it?
Broadbean’s software can get you the best employees in no time flat. Sign up for a demo today and see how our network can get you candidates you never even dreamed of.