Employee Referrals: Mining Recruitment Gold

Employee referrals are much more important, but still remain a (relatively) low priority for human resources departments.

Employee Referrals: Mining for Recruitment GoldRecruitment through human resources departments have traditionally been from a variety of sources used to find skilled candidates. Most of the time recruiters would consider potential employees in a pool of possible applicants through career sites and job boards.

With unemployment down and the available pool of talent being directly scooped up by aggressive recruiters, more employers are mining existing employees to get recruitment gold.

Employee referrals are the becoming the best way to get the most qualified applicants. As it has always been the case, it is about who you know. Your employees may be holding the key to the perfect candidates.

In a recent survey, referrals may provide more hires, sometimes considerably more, what was once thought to be the case.

It has become accepted wisdom to estimate the average number of new hires coming from employee referral programs lies between 25 percent (at least for non-exempt positions) to around one-third. Some programs have performed better than others.

FREE LIVE OVATION DEMOStaffing company CareerXroads has now found evidence that hires from employee referrals are considerably undercounted.

Last year, in a survey of clients and others, CareerXroads staff discovered that in the companies that have a referral program, the standard for external hires from referrals averaged much higher, at 28 percent. Most of those companies pay a bonus of some sort for new referrals.

They also learned that it takes an average of about 10.4 referrals for one hire. Some companies are either so particular or acquire such a large number of referrals that only one in 25 referrals (sometimes even more) will result in a hire.

There were some surprises. Unfortunately, few employers actually devote staff to promoting an employee referral program, leaving it largely under the umbrella of Human Resources departments. Often, they are understaffed, and a profitable source for quality candidates remains untended.

ovation tech blog

This is disturbing because the amount of effort one could invest in a referral program could easily save energy in recruitment and hiring from other sources.

One intriguing infographic is from Jobvite, showing how referred candidates offer several advantages to employers over those who come up through “outside” sources.

Infographic after the jump…

Continue reading “Employee Referrals: Mining Recruitment Gold”

Four No-Fail Social Media Hiring Tips

This is icon for social networking website. Th...Need to hire an employee fast? Social media has straightforward, effective and inexpensive (or FREE) ways to reach out to qualified candidates.

More than 90 percent of companies are using social media to find new employees, according to a recent Jobvite study. The most popular: Twitter and Facebook and LinkedIn.

If you’re up to the challenges presented by recruitment, here are four no-fail tips for using social media to find your next superstar employee:

Continue reading “Four No-Fail Social Media Hiring Tips”

The Value of Employee Referrals [Infographic]

The Cost (Savings) of Employee ReferralsAfter a lengthy job search, you may have learned the indispensable principle of hiring—it truly is who you know. Networking with professional contacts is essential for job seekers in any business.

High unemployment has led to a business environment where a larger number of candidates are applying for every open position.

With that in mind, employee referrals are becoming the way recruiters, hiring managers and human resources professionals choose the right candidate for the job.

It is no surprise that confidence in hiring is higher when the prospective employee is recommended by someone already working at the company. This infographic by Jobvite shows the true value of employee referrals—becoming a valuable part of an effective hiring strategy.

Interestingly, on average only seven percent of a company’s applicants come from employee referrals, yet 40 percent of hires are made from them.

Compare that to 21 percent of people from employment site that are hired (and those sites account for 32 percent of applications) while just 15 percent of job board applicants are hired (job boards account for 43 percent of the applicant pool).

Employee referrals offer another benefit—they speed up the hiring process. Consider the average number of days until candidates start work:

  • Referrals: 29 days
  • Job board: 39 days
  • Career site: 55 days

What’s more, employee referrals often stay with the company longer. After three years, nearly half of referrals (47 percent) are still with their company. In contrast, after three years, only 39 percent of career site applicants and 14 percent of job board applicants remain.

The employee referring new people also do well, with 69 percent of companies saying they offer bonuses to employees who make a successful referral.

Infographic after the jump…

Continue reading “The Value of Employee Referrals [Infographic]”

Facebook Tops For Job Seekers [Infographic]

More Job Seekers Use Facebook to Find Work than LinkedIn, Twitter

Job Seekers Choose Facebook Over LinkedIn, Twitter [STUDY]LinkedIn may the choice for professionals and Twitter may be gaining popularity, but Facebook is still the king of social media for job seekers, a new study shows.

In 2012, 88 percent of job seekers have at least one social media profile, according to a recent survey by the recruiting platform Jobvite. Facebook was the number one platform people used to find work this year, outperforming the exclusively professional network, LinkedIn.
Continue reading “Facebook Tops For Job Seekers [Infographic]”

HR Technology: Adapt or Perish?

Is HR becoming the IT of the 21st Century?

Online HR services, no stopping them?In business, change is unceasing. A sense of change is especially true in the field of modern human resources.

As the HR profession changes, becoming high-tech and advanced, professionals must keep up by becoming technologically savvy—perhaps even with a hint of IT expertise. Continue reading “HR Technology: Adapt or Perish?”