Focussing on employee referral programs
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RAISING YOUR EMPLOYEE REFERRAL PROGRAM RESULTS TO 50% OF ALL HIRES “50% is the new ERP target” © Dr John Sullivan 1 www.drjohnsullivan.com
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Today there is a growing importance of engagement and relationship building with potential candidates. With the modified communication patterns, candidates expect two-way interactions with recruiters. And this is possible by leveraging the power of social media with the employee referral program of an organization. Using socially intelligent tools that engage employees and use them as recruitment ambassadors is the need of the hour.
Transcript of Focussing on employee referral programs
RAISING YOUR EMPLOYEE
REFERRAL PROGRAM RESULTS
TO 50% OF ALL HIRES
“50% is the new ERP target”
© Dr John Sullivan
1 www.drjohnsullivan.com
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What are the business reasons
for focusing on referral programs?
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Referrals produce the highest volume
Referrals are #1 in volume
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Source popularity Volume
1. Referrals 28.0%
2. Job boards 20.1%
3. Career site 9.8%
4. Recruiter initiated 9.1%
5. College 6.6%
6. Rehires 4.3%
7. Social media 3.5%
8. 3rd party 2.8%
9. Print 2.2%
10. Temp to hire 2.1%
11. Career fairs 1.9%
12. Walk-ins 0.8%
Source: CareerXroads 2012
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Referrals are a high volume source
Reached 90% of it’s hires from employee referrals
Ernst & Young and Deloitte’s ERP’s both reached
approximately 50% of all hires last year
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Referrals produce high
quality applicants
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#1 in quality of applicants
In a survey of 73 major employers… 88% said
that… referrals are the # 1 best source for above
average applicants
Source: 2006 DirectEmployers Association/BoozAllen Recruiting Trends Survey
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High quality applicants
Although only 7% of job applicants came from
employee referrals
A whopping 40% of ERP candidates get hired
Source: 2013 JobVite Survey
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High quality applicants
Referrals have the highest interview to hire ratio
Data analysis by SilkRoad reveals that 17% of referral applicants are interviewed
And 25% of those interviewed are hired (#1)
Source: Silk Road 2013 http://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=email
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Referrals produce quality hires
Referrals are #1 in quality hires
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Source effectiveness /quality of hire
1. Employee referrals
2. Large job boards
3. Niche job boards
4. Temp to perm
5. Recruiters
6. Trade media
7. Staffing services
8. College recruiting
9. Career fairs
10. Co-op education
11. Mass media
12. Military
Source: staffing.org 2011
Referral produce more profit
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Referral hires produce more profit
Hires from referrals produce a nearly 25%
higher profit… than hires from other sources
Source: “The Value of Hiring through Referrals” (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
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Referral hires have
high retention rates
Retention results
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Referral hires have higher retention rates
Referred workers are between 10% and 30% less
likely to quit than workers hired from other
sources
Source: “The Value of Hiring through Referrals” (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
