What percentage of your hires come from employee referrals? 50% should be your goal, but if you are like most organizations, there's a huge chance that you're under that.
The benefits of hiring 50%+ by referrals are enormous: you’ll speed up time-to-hire, increase retention, and ultimately end up with happier and more motivated employees. After all, each employee you hire by referral saves you $8,975. Here's how you can double your employee hires.
Before you proceed, determine if your current recruiting system is functioning as it should. If you’re proactively identifying top employee connections, great! If you’re not, look at your organization from a high level and ask yourself these four questions:
- Do I have low employee retention and/or a high churn rate? — If your employees aren’t sticking around long, it’s most likely because they’re not the right fit for the position. This usually happens when you’re hiring simply to fill a gap rather than looking at the qualifications of those you’re hiring. When you’re not hiring great fits, it’ll show.
- Is my cost per hire over budget? — Whether it’s your recruitment process that is too expensive or using an expensive hiring agency to do the work for you, the bottom line is the same: it’s too expensive.
- Does it take more than 6 weeks to fill an open position? — How many of your positions are filled in less than a month? Many organizations see time-to-hire between 2 to 3 months depending on each role. Being a person down for up to three months can be detrimental to your organization.
- Are my recruiters overworked? — Stressed, burnt-out employees are less likely to do their best work, and that includes recruiters. While it may be tempting to push them to work faster and harder to fill open positions, teams operating in over-capacity aren’t going to bring in top talent — they’re going to bring in whomever’s going to fill the position the fastest. And the cycle starts from the beginning...
Once you’ve diagnosed a need, attack any issues that comes up head-on. The easiest and most effective way to combat the challenges above is a smarter sourcing process.
When done right, a smarter sourcing process is easy and enjoyable for employees and will reap big benefits for you. Top talent identified by your employees are the best quality candidates you can find, and since they're easily identified, it's not a stretch to get to a referral hiring rate of 50%.
This will help you start operating within your budget, fill positions faster, decrease employee churn, and eventually have happier employees.
See how ROIKOI automates smarter sourcing.