Are Employee Referral Programs Good For Business?

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<h1>Are Employee Referral Programs Good For Business?</h1><strong> Author: <a href='http://www.articleseen.com/profile_saviovadakkan.aspx'>saviovadakkan</a></strong><br /><p>As the hunt for talent intensifies, organizations are finding it increasingly hard to meet their business goals as critical roles remain unfilled due to the inability of the hiring team to recruit in time and within cost budgets. But while some organizations are struggling to grow due to talent crunch, there are other organizations who continue to grow as they are finding it relatively easy to source and hire talent. The crucial differentiator here is the referral program and its effective use by organizations like Big Commerce, Accenture and Deloitte etc. to staff their business with high quality manpower. What are some of the business reasons which make global corporations like Accenture, E&Y and Oracle etc to give such priority to employee referrals in their recruitment process? Let’s look at some of the most important benefits to business from an effective employee referral program: • Employee referral programs rely on employees to refer others like themselves, and since employees have a firsthand knowledge of both the culture of the organization and the job involved, they are likely to provide the organization with good quality references, something which the organization has to struggle to get from other recruiting sources. The quality of applicants from employee referrals tend to be the best out of all recruiting sources which is why the applicant to hire ratio for top performing the employee referral programs stands at 1:3 against an average of 1:18 for other hiring sources. Businesses can save considerable time and money by using employee referrals for hiring against other sources. • Employee referrals tend to be more productive than non-referral hires especially in high impacting jobs. Since they are mentored by the existing employees, they adapt faster and are able to scale up the learning curve much faster than non-referral hires. • Employee referrals also tend to stay longer with the organization than non-referral hires bringing down attrition rates. Lower attrition means lesser open positions and subsequently lesser time and money spent on hiring, all of which has a positive impact on the bottom line of any business. By making employees partners in the recruiting process, employee referrals also produce substantial value for the business in the long run by enhancing the employer brand for the organization. A good employer brand will automatically attract good talent, reducing the need to invest time and money in trying to attract good talent with attractive compensation packages. </p><strong>About the Author:</strong><br />Savio Vadakkan is the Marketing Representative at ZALP -The No.1 <a rel="nofollow" href="http://www.zalp.com/employee-referral-solution">Employee Referral Tool</a> used by industry leading organizations. ZALP enables organizations to build a completely automated and social media integrated <a rel="nofollow" href="http://www.zalp.com/">employee referral program</a> to help boost their employee referral hires. Visit www.zalp.com to know more.<p> Article Source: <a href='http://www.articleseen.com/Article_Are-Employee-Referral-Programs-Good-For-Business_307771.aspx'> http://www.articleseen.com/Article_Are Employee Referral Programs Good For Business?_307771.aspx</a></p>

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Keywords : employee referrals solution, employee referral program, social media recruiting, employee referral,

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