Busting Five Myths About Employee Referral Programs

How can you get the most of your professional network when hiring? The answer is employee referrals.

Five Myths About Employee ReferralsIn a recent blog post by Heather Huhman for BusinessInsider.com, she busted a few of the myths of employee referrals. In the piece, she reminds readers that employee referrals provide better workers, as well as loyal employees who stay with the company longer than the average outside hire.

The sad thing is that despite evidence employee referrals are a powerful recruitment tool, many organizations remain skeptical.

If these companies can only see referrals in a new light, they will not only gain more candidates, but also a wider range of quality candidates from which to choose.

The best thing about an employee referral program is that it doesn’t have to be limited to just one group.  The best referral programs distinguish the kinds of candidates you receive.  You will get better results if you open up your referring group to include a variety of contacts.

Human Resources: Free live ovation demoLook to external networks, former employees, business partners, and vendors for referrals. Nearly half of referral hires will come from non-employees, which includes trusted business contacts, friends and other connections. Keep in mind that referrals work best when rewards are offered.

This infographic from Zao, the social employee referral program, answers doubts an organization might have. It exposes five common myths about referral programs; this fear only holds back a business from finding better quality hires.

These misconceptions keep businesses hesitating about employee referral programs proven to find the best candidates. Who is a better cheerleader for your business than happy existing employees?

The biggest takeaways of the infographic:

  • 46 percent of employee referrals stay for more than three years as opposed to only 14 percent  of employees that come from job boards
  • 41 percent of employee referrals  can come from trusted external networks if rewarded properly
  • Employee referrals that lead to hires can produce 25 percent more profit and are 20 percent  less likely to quit

The infographic below can help explain how an employee referral program can help you create an effective, motivated workforce.

Five Myths About Employee Referrals


Published by @philammann

Put. That coffee. Down. Writer/editor/whatever it takes. @margaretj13 is my (much) better half. Website: FloridaPolitics.com Email: phil@floridapolitics.com Twitter: @PhilAmmann

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