The Importance Of Employee Referrals In The Recruitment Process
Recruiters employ a number of different methods and industry approved techniques to shortlist and select the best possible candidate from the multitude of interested applicants. The various methods employed include long and complex processes which require a considerable amount of work, with follow up, to ensure the efficiency of the procedure.
Employee referrals is a technique much preferred and adopted by a number of recruiters in the industry, which ensures the evaluation of a suitable candidate, referred by an employee or someone else, for a particular vacant position in the organization. Employee referrals are very popular because of their being highly cost efficient, as the company does not have to bear any promotion and job advertisement procedures to attract the candidate.
The Efficacy Of Employee Referrals
According to statistics, employee referrals account to provide the highest possible conversion rate of applicant to hire, of candidates, which provides around 40% of the entire hires for the companies operating in the industry.
Referrals have also been evaluated to have greater job satisfaction and also work for the company for a relatively longer period of time. According to research, around 67% of recruiters and employers cite the recruitment process to be much shorter in the case of an employee referral. While, around 51% of the company recruiters cite the employee referral process to be more cost efficient than the regular recruitment process.
The growing trend of interacting on social media communities and harboring online connections with individuals all over the world, has made it very convenient and easy for companies, to get employee referrals for job vacancies in their company.
According to research, the employees hired for a position in the company by means of a referral are able to start work on the job much earlier than other individuals hired through the methods of job postings and agencies. It takes an individual around 29 days to start performing their duties on the job, while candidates hired through a job board and career site take around 39 and 55 days respectively, to take up their responsibilities on the job. Time being a very important factor necessary for the success of the company, is conserved and utilized more efficiently through the process of employee referrals.
Employees who are hired through the process of referrals are employed around 55% faster when compared to those selected through various career sites and other sources. This makes it a much cost and time effective procedure than other methods.
There is a trend in the industry with some sectors more popularly opting for employee referrals than others which view the process as a means of selecting a suitable candidate easily. Companies operating in the sales, engineering, customer support, marketing and photography sectors of the industry prefer referrals and find them most effective in selecting the perfect employees who conform to their company culture and perform their job duties diligently.
Employee referrals are not the only source of finding the perfect candidate for a job position, but they are without a doubt a very effective means, nevertheless.