Published on July 8th, 2020 | by Bibhuranjan0
What Are The Benefits Of Hiring Referred Employees?
Hiring is indeed hard.
From posting jobs to interviewing candidates, HR managers spend days, even months, to find a suitable individual for the organization. Often, ending up with the right hires gets extremely tedious and challenging. This is when employee referrals come into play. Word of mouth publicity is never out of fashion. Many companies still use and make the most out of it.
Employee referral is a simple method wherein a company allows its employees to refer family members, friends, acquaintances, etc. for a vacant position within their organization. This usually gives the hiring process a significant boost in terms of efficiency.
Considering the hardship baggage of hiring, employers are doing every bit to help their HR department today. Recruitment management software, for instance, is in high demand now. More and more firms are relying on such software to ease recruitment. Likewise, employee referral & utilizing employees’ professional networks is one great step to simplify hiring. It helps a firm to acquire a huge talent pool of candidates in a fraction of time. There are more benefits!
Here’s how employee referrals reap ample of advantages to an organization:
Let’s face it, we are living in a fast-paced world and nobody has time to waste. Hiring may be a time-consuming process but an HR department must figure out ways to save time. Now, efficient recruitment methods automatically save a large chunk of time. One such efficacious or time-saving method is employee referral.
Recruiting referred candidates not just makes the whole process fast but also allows HRs to manage numerous hiring tasks such as analyzing CVs in just a few hours. Recruitment management software, on the other hand, makes it even faster.
Cut Down Expenses
Apart from saving time and energy, an organization can also potentially cut down the total costs spent on engaging and recruiting new people.
In employee referrals, an employee advertises the company to his or her friends and family for free. This means no money is spent on job postings or advertisements. In addition to this, a company does not pay any outside recruiters to find candidates. More than anybody, employees usually have a clear understanding of their company and its culture that ultimately helps them to attract their personal relations.
All in all, a company can save plenty of money using referrals, that too without compromising the hiring quality.
Asking existing employees for potential referrals usually leads to engagement within a workforce.
Here are two ways employee referrals enhance workforce engagement:
- Employees feel respected and trusted when they are allowed to be a part of recruitment—an important process for every company’s growth. Furthermore, when their referred person gets selected, it builds a sense of satisfaction and fulfillment within them.
- Also, referred employees take less time to engage as compared to a normal hire. This is because they already know at least one person in the workplace. Thus, they will not find much difficulty adapting to the company’s environment since they have a friend to rely on for support.
According to several studies, excellent candidates usually come from inside that are through employee referrals. Also, a recent study proved that candidates selected using referrals stay longer with an organization than those recruited via other mediums. “Over 50 percent of respondents of the same study even stated they have been in their current company for more than 5 years.” This is yet another reason to use referrals while carrying out the hiring process.
Following the outbreak of COVID-19, every other company is functioning from home and facing various WFH challenges. As a result, employers are making use of numerous technological advances including payroll software, recruitment management software, and many more. Talking about recruitment, HRs, and employers are struggling with it more than ever before. Hence, this is the right time to turn your employees into recruiters and make your hiring efficient even during this difficult time.