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What Can An Employee Referral Program Do For You

By Expert Author: Savio Vadakkan

Employee engagement and participation has proved to be a success factor for many organizations. Thus, this employee involvement can be achieved via different ways like participating in corporate projects, working in cross-functional teams, contributing to critical projects etc. to reach various company goals

An employee referral program (ERP) is one such initiative that has being used across companies around the world and continues to prove efficient by which an existing employee recommends another professional for positions open at his organization often saving employers both money and time.

Why have an ERP?

• Wider reach for talent from an employee referral program

Recruiting is by no means an easy task. Hunting talent is difficult since not everyone around is looking for a job change. There are many working professionals who might be passive but would not mind getting alerted of better opportunities. So using your employees’ current connections can help you reach a wider audience and thus increasing the chances of filling a vacant position with less time and money involved.


• Get quality candidates with employee referrals

Your employees are aware of the job requirements and the company culture leading to them finding the perfect fit for a vacancy. Moreover they will also filter out quality candidates by scrutinizing the applications received making a recruiter’s task even simpler. Employees usually feel that an “employee referral” is a form of reiteration of their faith in their faith in their company’s value statement and hence make sure they refer only outstanding and competitive talent.


• An employee referral program saves cost

An employee referral program does not replace a career site of the organization and can never become the only recruitment tool that a company resorts to source talent. It can however help save considerably on advertising and hiring costs over a long run and thus be part of an organization’s recruitment strategy. Integrating social media with your referral program helps further reduce cost of running the program.


• Increase of morale and motivation among employees

An effectively running employee referral program highlights the fact that the management trusts their staff’s judgment which builds up employee confidence and gives employee engagement a boost. An effective reward management system also helps the participating employees to be motivated and proactive.


• Employee referral programs are an effective time saver

The recruitment cycle is shorter for a referred candidate than an employee coming from other recruiting sources like job-boards, career sites etc. The reason for this would be your employee already since he has already built the company image in the eyes of the referred candidate and projected the job as the best one in the market.

Also since the candidate comes as a referral, the scope of conducting background checks and reference checks on character and ability is reduced


You can read more on latest trends and technologies in recruitment on http://www.zalp.com/theemployeereferralblog/

Author Bio :

Savio Vadakkan is the Marketing Professional at ZALP, a unique employee referrals booster. ZALP helps organizations tap the full potential of their employee referral program using advanced Integrating social media, effective reward management system and interesting features like gamification.

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