Referral programs cut labor and costs and can make your employees happier.
Labor—quantity and quality—is a pressing issue for small business owners. “36% (seasonally adjusted) of small business owners reported job openings they could not fill in June, up two points from May,” according to the National Federation of Independent Businesses (NFIB).
If your practice is in the same camp and you wonder what can be done, implementing an employee referral program could provide you high-impact results at low cost.
These programs found popularity as a recruiting strategy because they’re especially beneficial for business with small recruitment budgets and that would otherwise not be successful at reaching potential hires.
How does it work? Employees vet who they recommend and reap benefits for doing so. Prescreening is essentially done by your employees, as high-performing employees tend to refer the same type of candidates.
Tips for Creating a Successful Referral Program
Acknowledge referral successes publicly.
It’s important to take time to publicly acknowledge and celebrate the wins of the program with your staff. You can do this through shoutouts, team-wide recognition, or prizes. This can lead to bolstering a positive culture and a big morale boost, which might encourage even more staff to participate in the program.
Offer rewards and incentives to promote participation.
To get the most participants possible, not much can beat the motivation that comes from monetary rewards or bonuses. Extra PTO days, free lunches, and gift cards would also be highly valued and show your appreciation.
Prioritize transparency with staff.
If employees have gone out of their way to bring in potential candidates, especially those they know, it’s important to keep them notified of where the candidate is in the process. Consider communicating when the submission was received, if an interview was scheduled, and where the candidate stands.
Go beyond employees.
Why stop with employees—especially if your team is not large—in your referral program? Think of other groups that you can reach out to, such as loyal customers, trusted partners, or retirees that can aid in helping you find the right person. Any connection with a baseline of trust is worth including.
Keep it simple.
A simple and straightforward process matters a great deal. Have a point of contact and an easy system for receiving referrals, which could be a form on your website, sending a resume, or submitting contact details to the appropriate staff member.
In short, having a referral program is a cost saving way to bring in recruits of high quality, fast track the recruitment process, as well as strengthen employee morale.