What Makes A Successful Employee Referral Program

December 29, 2016 Deb Broderson

What makes a successful Employee Referral Program?

Before we can discuss what makes an Employee Referral Program successful, let’s set the stage about WHY they are needed.  We live in a business world where organizational success is increasingly reliant upon our ability to attract and retain talent. The most “in-demand” talent wants more visibility into the organizational culture of prospective employers. The facts are that a well-designed Employee Referral Programs helps you “double down” on Employee Engagement.  You are both engaging your workforce while enlisting them to attract new talent. 

So, what makes an Employee Referral Program successful?  Here’s just a quick recap.  For more details, you can access one of our resources.

  • The use of social media for recruiting
  • Dashboards and analytics for managers and recruiters
  • Visibility to the progress of referrers
  • The right funding of the program
  • Recognition as part of the referral process
  • Timely payouts
  • A strong communications strategy

A Framework of Engagement

A thriving Employee Referral Program should exist within the overall framework of Employee Employee Engagement and Employee Referral ProgramsEngagement. Unless and until your employees are engaged with your organization, they will not start actively referring qualified candidates.  Retention is one of the strongest arguments for Employee Referral Program within your overall talent strategy. The gap between retention rates of referred hires vs. non-referred is not only strong during the beginning years, but accelerates in successive years.

The direct result of an Employee Referral Program is that the time and expense of bringing new hires up-to speed is more easily recouped, as the referred hires hit their career stride with your company, rather than defecting to a competitor once you’ve trained them.

A successful employee referral program should leverage new social tools, integrate to key HRIS technologies and help make everyone in your organization a recruiter.

 What are you doing to make your Employee Referral Programs successful?

Tell us!

About the Author

Deb Broderson

Deb Broderson comes to Perks with 30 years of diverse experience leading channel marketing, marketing operations and program management teams within the technology industry. Deb has provided strategic direction to Fortune 500 clients, developed and executed global, multi-channel, go-to-market strategies and created worldwide field marketing organizations. Deb has worked on both the agency and client-side of the business, providing a well-rounded perspective to client challenges. Deb was honored as one of the Top 50 Channel Chiefs in North America by CRN.

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