REFERRAL KILLERS

Common barriers to a successful

Employee Referral Program

8 TH

E

When an employee makes a recommendation, they take a risk on their personal reputation and there is a risk that the recruiters or hiring managers feel that their time has been wasted.

If the referred candidate is hired, there is the additional risk that the candidate will not work out, and will always be known as their ’guy’, particularly given any financial rewards they may have been paid.

Accountability 1 #

Where rewards for referred hires are high, there is a high level of due diligence, as well as tax implications.

Where there are cash rewards, there are plenty of reasons for saying no to a claim. The sense of injustice proves to be a real cancer to many Employee Referral Programs.

To get an Employee Referral Program to work,

the rules need to be transparent and

designed to reward rather than penalize.

When the system is seen as fair and reasonable,

employees are far more willing to take part.

Transparency 2 #

The process behind the ERP needs to be

simple and quick, enabling employees to

contribute without interfering with the time

available to do their real job.

The more time involved in searching, matching,

communicating with potential candidates, recruiters

and admin, employees will be less likely to continue

taking part.

A successful ERP needs to be admin

light and built with the employee

in mind.

Time Consuming 3 #

Whilst an accountant might know plenty of accountants, their main job is working the numbers, not recruiting staff.

The volume of referrals can be a good indicator of staff morale and the ‘not my job’ attitude, so where there is little buy in, why refer? It can also be a result of employees lacking confidence in making judgment calls, linked to accountability.

Not Their Job 4 #

“When employees are not required to make

selection choices, Employee Referrals go up.”

Line managers need to see the

Employee Referral Program as

being important to their team,

and the most effective way they

can recruit.

Where time and resources are invested in getting line manager buy in, they are far more willing to include conversations about referrals in team meetings, one to ones and more. Where referral figures are included in performance reviews, then the Employee Referral Program is kept front and center.

Line Manager Buy In 5 #

Some employees feel uncomfortable

approaching their friends about jobs

with their employer and are unsure

how to make the first approach.

The best way to resolve this is to make the process easy and to offer training in the referral process and promoting the employer brand.

Training and development to support the

Employee Referral Program will lead to success,

with employees being more confident in having

career related conversations.

Uncomfortable Approaching Friends About Jobs 6 #

Successful Employee Referral Programs

place candidate experience at the center.

Negative feedback to candidate experience

will strangle any Employee Referral Program

initiatives.

Recruitment processes should be designed to

operate referred candidates as a separate channel,

with time scales for review and feedback to both

the candidate and the employee who originated

the application.

7 # Poor Candidate Experience

Most ERPs launch with great intentions, publicity and fanfare but after a few months, employee enthusiasm and participation weans.

This need not be the case with careful planning.

When structuring an ERP strategy, you need to

think how you are going to promote the program

and keep it prominent in the thoughts of employees.

Celebrate successes publicly with open recognition,

plan for on-going communication and get referrals

on the agenda at every management

and team meeting.

8 # Forgetting the Employee Referral Program