When you need to hire, your first step should be to reach out to your existing employees. Studies show they continue to be the best source of quality new employees, all while providing a lower cost to hire. Here’s why.
Are Employee Referrals The Best Source of a New Hire?
Better quality candidates.
When you turn to your existing employees for help filling a new position, they know the culture, the company demands, and what it takes to succeed there. As a result, when they send a candidate your way, it will be someone worth considering.
You can skip the endless hours of screening resumes and search through countless profiles on LinkedIn. Instead, with just a few referrals from your candidates, you can fill your vacancy faster with a professional who is a better fit.
Better conversion rates.
When a candidate comes from a referral versus other methods, the chances of you hiring them are better, according to research. For instance, Glassdoor reports that employee referrals boost the chance of finding a match by 2.6 – 6.6%.
When you hire from a referral, it’s easier. You’re not searching the Internet for candidates or posting job descriptions on job boards and social media. Instead, you can hit the ground running with interviews and then narrow your selection down to a few top picks, streamlining the process and making a hiring decision faster.
Hiring is expensive when you look at the full picture, from direct to indirect costs. However, when you obtain referrals from employees, you can cut down on the costs significantly, while still being able to hire quality candidates.
That said, it’s important to reward your employees with a formal incentive program. This ensures you’re able to continuously access quality referrals from your team, keeping hiring costs low and retention high.
Increased employee retention.
Speaking of retention, when you hire the right person from the start, improves retention. Many employees leave after the first six months on the job. However, a new employee from a referral is likely to better integrate with the company and the culture, leading to lower turnover.
When you hire a referral, that individual often knows from the person who referred them what it’s like to work at the company. They walk into the opportunity with open eyes and more realistic expectations, so they’re more satisfied on the job.
Get professional help hiring.
If employee referrals aren’t delivering the candidate you need, turn to OneSource Staffing Solutions. We can handle the sourcing, screening, background checking, verifying references, skills tests, and more, so you get the top talent you need. Contact us today to get started.