Every recruiter knows that hiring top employee connections is valuable, but just how valuable? Check out the statistics below.
Retention from job board candidates after 2 years is 20%. Retention from referrals is 45%.
Quantitatively, if your average cost per hire is just $2,500, referrals save you $5,625 per hire in retention.
It’s hard to gauge how knowledgeable inbound candidates are. They often have fewer ties to the company and are less likely to stay for the long haul. However, your valuable employees are connected to like-minded people, which means high-quality candidates for you and increased satisfaction for your current employees. Think about it: if you were offered a new job in a field you excelled at and got to work with people you like, wouldn’t you want to stay?
The time it takes to hire a new employee from a career site is 55 days and on a job board is 39 days. Time-to-hire with referrals is 29 days, on average.
Quantitatively, if your average salary is just $5K per month and you get just a 2X ROI from hiring, every day a job is open will cost you $250. Saving 10 days per hire with referrals is worth $2,500 per hire.
Saving an astounding ten or more days in your hiring process also gives you back much-needed time that could be spent elsewhere. The possibilities are endless — you hire more employees, or spend more time onboarding, which increases retention even further.
Sourcing And Screening
Quantitatively, you save $850 per referral hired in sourcing and screening time saved.
Sourcing and screening is generally monotonous and time-consuming. However, the beauty of tapping into your employees' top connections is that they greatly reduce the time you need to spend sourcing and screening.
Quantitatively, each referral you hire saves you $8,975 (on the low end), and that doesn’t even take into account the diversity hiring benefits or how much you save in avoiding the costs of a bad hire. Your employees' connections are highly valuable, for all the right reasons.
Check out how Intouch benefited from sourcing their employees' top connections.