Employee referrals could solve your recruitment worries

In a volatile post-COVID job market, employers are consistently losing staff to competitors. A third of Americans and Australians changed jobs in the last year, and 7 in 10 British employees are actively considering changing employers. This is a global trend happening concurrently with staffing shortages. You may ask yourself: if so many people are changing jobs, why are we not finding talent?

There are many factors influencing this. Employers are competing to offer the highest salaries and benefits, as well as attempting to protect workplace cultures in an ever-digitised world. Furthermore, organisations are responding to this by making faster hiring decisions, so candidates are moving quickly into new roles, spending considerably less time on the market. 

This results in a shift in priorities, where employers are desperate to lock in that hire. However, in doing so, employers can go into situations blind. When you hire during a talent shortage, you can overlook key success criteria such as role alignment and culture fit. Ultimately, this results in a less engaged workforce, which will take you back to the start of the cycle.

What if there was a way to be confident that every candidate you meet with has some level of alignment with the role and organisation? You need to be certain that every member of your organisation is a genuine fit, and the best way to connect with them is through trustworthy advisors. The answer lies in employee referrals.

What are employee referrals?

Employee referrals are candidates that existing employees have recommended. When searching for new staff, companies often encourage their current employees to reach out to their network and recommend candidates they believe to be a good fit for a role. In principle, it is an excellent strategy, as nobody understands your organisation quite like your employees.

The reputational factors ensure that almost every referral has something special worth exploring. However, with additional recruitment processes, documents can get lost, and candidates can be forgotten. We are only human, but it is essential to iron out any issues in your employee referral program to keep your staff engaged and maintain their trust.

Why do referrals matter?

Many organisations incentivise referrals through reward programs and bonuses, though above all, referrals provide the ultimate opportunity to recruit with kindness. When you go to market with a role and candidates are invited to apply, they often don’t even speak with a hiring manager. They have no prior understanding of the organisation and role requirements, which can lead to disengagement as the process goes on.

In addition, commission-based recruiters who pocket up to 30% commission for each successful hire shower you with gifts and promises, whilst taking advantage of the market conditions. This culminates with them poaching your staff six months later. For a $100K base salary, you could be paying recruiters $30,000 for someone to stay for six months. You have the opportunity to personalise your recruitment process, tap into new talent, and strengthen your organisational culture. With employee referrals, you can do this whilst cutting down unnecessary costs.

How do I develop a strong employee referral program?

The toughest part about developing an effective employee referral program is engaging your staff to participate. Yes, referral bonuses motivate some, but they are not a one-size-fits-all approach. It is important to remember that heavily taxed referral bonuses do not resonate with all employees.

For some, it is more motivating to know that their referrals will be treated with respect and given a fair opportunity. Others want to see their bonuses having a stronger impact before the tax office sees it, such as tax-free donations and funding for professional development. This is where KindReff comes in – we are a standalone application tracking system designed to give your employees greater choice.

With KindReff, you can see exactly who has referred candidates with their unique referral link, where they feel their referral bonus would be best contributed, and build rapport with your referrals through safe and centralised communication channels. 

We believe that there is always a way to create a more individualised recruitment process that values candidates’ time and investment, which is why we invite you to try KindReff to complement your existing recruitment processes.