The Impact of Employee Referrals on Your Employer Brand

The IMPACT of Employee Referrals on Your EMPLOYER BRAND A strategic employer brand sets the tone for recruitment and retention. Don't forget to add employee referrals to your employer brand toolbox -- it utilizes your best asset: the employee. What Is An Employer Brand? Brand Employer Employer Brand Employer Culture Values & Purpose People Brand At its best, an employer brand is a strategic, long-term driver for: O Employee Recruitment 70 60% 60 40% 20 10 7 in 10 job seekers say the job and the company are equally important in deciding whether to accept a position O Employee Retention 35% 40 The Rest Fortune 100 20 Best Companies Percent of employers who report their to Work For 25.4% 10 11.3% employer brand contributed to a reduction in employee turnover O Employee Engagement O Controlling Recruitment Costs Employer brand ROI expectations increase 45% employee engagement 42% Employers 61% attribute Percent of employers who found their employer brand successfully reduced spending on third-party recruiters increased engagement in part to their employer brand O Quality of Candidates Percentage of companies that saw an increase in their quality of hires 17% Benefits Of Employee Referrals In Your Employer Brand O Hiring Volume Referrals were reported as the #1 source in hiring volume #1 Employee referrals are hired faster than Percent of new 44% 55% hires that come from candidates from employee referrals company career sites O Hiring Quality #1 source for new hire 1 O Length of Employment Employee Referrals Rank #1 Compared to Company Career Sites 60 46% 45% 47% 50 40 30 33% 35% 39% YEAR 1 YEAR 2 YEAR 3 O Applicant-to-Hire Ratio Employee Referrals All Sources to Top Firms of Applications Cost Per Hire Employers offer Employers said it was less expensive a referral bonus 51% 69% to recruit referrals to employees Why Would Your Current Employees Refer New Employees? Street Cred: They want public recognition for their job well done. Employees ranked public recognition as the #1 incentive that would motivate them to refer someone recognize me O Cash, Prizes, and More: They are offered relevant and fun incentives. 24 percent of employees Having a financial incentive was ranked the #2 reason why someone would get more involved in a referral program referred someone because they wanted the reward O Lending You a Hand: They want to support the company. of employees who referred someone 20% did so because they cared about their workplace and wanted to help Getting Started With Your Own Employee Referral Program O Step 1: Make sure your current employees would recommend your company to their friends. 6 of 10 of employees say they would recommend jobs at their company to a close friend or family member O Step 2: Make it easy for your employees to sell your company. Guarantee interviews to candidates of top referrers 69% 70 100% Linked in. 56% 60 facebook. snterviewed GUARANTEE 50 Grads who expect to see your company on social media O Step 3: Choose cash and incentive-based rewards that are right for you. 48% Percent of employees who said cash bonuses would further motivate them to participate in their company's employee referral program 80% Percent of companies that use non-cash rewards in their employee referral program Step 4: Research software that will help you organize your referrals, hires, and rewards. O Step 5: Generate feedback and honor great referrals if hired. Survey Implement an employee referral program today to complete your company's employer brand toolbox. Sources: http://unbridledtalent.com/2012/06/15/employer-brand-strategies-increasing-in-importance-infographic/ http://www.ere.net/2011/08/15/the-complete-ist-of-employee-reterral-program-best-practices-part- 1-of-2/ mg.icbdr.com/images/jp/content/whitepapers/WPR-0026 Branding2.pdf w.slideshare.net/hrtecheurope/employer-branding-whitepaper- http: r-tmp-worldwide http://www.ere.net/2012/05/07/10-compelling-numbers-that-reveal-the-power-of-employee- referrals/ ORolePoint http://recruiting.jobvite.com/company/press-reieases/2012/jobvite-declares-may-national- employee-referral-month/ http://stickyhg.com/employee-referral-programs-infographic/ http://www.ere.net/2012/08/22/employer-branding-numbers-everyone-should-know/ http://www.ere.net/2012/05/16/company-career-site-is-most-important-to-job-seekers, http://www.tint.com/2012/05/01/need-any-more-proof-job-referrals-are-really-important/ http://www.careerbuildercommunications.com/pdt/referralbook.pdf http://www.ere.net/2011/08/15/the-complete-ist-of-employee-referral-program-best-practices-part-1-of-2/ http://www.incentivecentral.org/employees/overview. 1867.html Design by Shamgar-Tracts.com Percentage of Labor Market % of Employee Turnover DEFINED Employer Brand UNMANAGED Employer Brand Retention Rate Referrals: quality