zalp webinar - raising your employee referral program results to 50 of all hires
TRANSCRIPT
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RAISING YOUREMPLOYEE REFERRAL
PROGRAM RESULTS TO
50% OF ALL HIRES
50% is the new ERP targetERE.Net, May 8, 2013
Dr John Sullivan
6www.drjohnsullivan.com
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My goals for today
1. To demonstrate the business
impacts of referrals
2. To expose you to dozens of
proven action steps that can
increase your ERP results
to 50%
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What are the business reasons
for focusing on referral programs?
Part I
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Referrals produce the highest volume
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Referrals are #1 in volume
Source popularity Volume
1. Referrals 28.0%2. Job boards 20.1%
3. Career site 9.8%
4. Recruiter initiated 9.1%
5. College 6.6%6. Rehires 4.3%
7. Social media 3.5%
8. 3rd party 2.8%
9. Print 2.2%
10. Temp to hire 2.1%
11. Career fairs 1.9%
12. Walk-ins 0.8%
Source: CareerXroads 2012
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Referrals are a high volume source
Reached 90% of its hires from employee referrals
Ernst & Young and Deloittes ERPs both reached
approximately 50% of all hires last year
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Referrals produce high
quality applicants
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#1 in quality of applicants
In a survey of 73 major employers 88% said
that referrals are the # 1 best source for above
average applicants
Source: 2006 DirectEmployers Association/BoozAllen Recruiting Trends Survey
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High quality applicants
Although only 7% of job applicants came fromemployee referrals
A whopping 40% of ERP candidates get hired
Source: 2013 JobVite Survey
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High quality applicants
Referrals have the highest interview to hire ratio
Data analysis by SilkRoad reveals that 17% ofreferral applicants are interviewed
And 25% of those interviewed are hired (#1)
Source: Silk Road 2013
http://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=email
http://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=emailhttp://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=email -
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Referrals produce quality hires
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Referrals are #1 in quality hires
Source effectiveness /quality of hire
1. Employee referrals2. Large job boards
3. Niche job boards
4. Temp to perm
5. Recruiters
6. Trade media
7. Staffing services
8. College recruiting
9. Career fairs
10. Co-op education
11. Mass media
12. Military
Source: staffing.org 2011
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Referral produce more profit
Referral hires produce moreprofit
Hires from referrals produce a nearly 25%
higher profit than hires from other sources
Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdfhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf -
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Referral hires have
high retention rates
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Retention results
Referral hires have higher retention rates
Referred workers are between 10% and 30% less
likely to quit than workers hired from othersources
Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdfhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf -
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Benchmark firms that you can
learn from
Part II
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Benchmark firms that you can learn from
AmTrust Bank
Deloitte
Edward Jones
Accenture
Ernst & YoungDaVita
Aricent
Childrens Hospital
Owens Corning
Accolo
CACI International
Acumen Solutions
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Lets start offwith 4 high impact
strategic action steps
Part III
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Strategic action #1
Prioritize and focus your ERP effort
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Strategic action #1
Focus ERP efforts on high priority jobs including:
Mission critical jobs and business units
Revenue generating jobs
Jobs with a high previous referral success rateHard to fill jobs
Sudden key vacancies
Tipbegin with a shortlist of targeted jobs and
then add positions
Prioritize the employee
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Prioritize the employeewith the closest relationship
Accolo uses a referral community
For every open job, it selects a few employeesbased on the likelihood that they will know theright person
As a result, Accolo has averaged 8 referrals forevery job (#1)
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http://www.chinanews.com.cn/sh/news/2008/01-09/1128811.shtml -
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Be careful
Homer will referpeople also
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Prioritize your employees
Focus on referrals from top performing employees
Why? Because referral hires from top performers
produce nearly3 times more profitcompared
to a referral hire from a below average performer
Seek out and prioritize referrals from top
performers
But also warn, restrict or ban employees that
routinely make weak referrals
Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housmanhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdfhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf -
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Strategic action #2
Do not overemphasize monetary rewards
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Strategic action #2
Use help the team" motivation (not $)The most effective referral motivation approach
emphasizes the opportunity to work alongside
great people because the team wins more
frequently when it has the best players
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Strategic action #2
You can build a help the team mentality by
emphasizing these benefits to employeesHigher quality hires will improve business results
and thus raise employee stock value and bonuses
Its part of the responsibility of being a team player
You will be recognizedfor helping the team
You will learn more from higher-quality new hires
You wont have to work alongside slackers
Note: A feedback loop is required to tell employeeswhether they made a junk or a star referral
Also show them the correlation between improved
business results and a higher % of ERP hires
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2 examples referrals dont require $ bonuses
Reached and maintained a +70% referral rate
with no $ rewards
Edward Jones reached 55% with no bonus
http://images.google.com/imgres?imgurl=http://www.24-7pressrelease.com/attachments/039762/AmTrust.jpg&imgrefurl=http://www.24-7pressrelease.com/press-release/new-year-new-amtrustcom-from-amtrust-bank-39762.php&usg=__VysR5gialqBTkDRIGOyO7445wqY=&h=287&w=846&sz=98&hl=en&start=1&sig2=cLOltDVDU5C3VKI-S28FFg&um=1&itbs=1&tbnid=19lG4xc9-kx9SM:&tbnh=49&tbnw=145&prev=/images?q=amtrust+bank&um=1&hl=en&safe=off&sa=N&tbs=isch:1&ei=Np-LS-31MJrotQPG5uSGAw -
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Strategic action #3
Be proactive in seeking out referrals
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Strategic action #3
Why you need to be proactive?
Great people know great people, howevermostemployees are extremely busy
so to maximize your referrals you will need toproactively approach your top referring
employees
Here are 3 proactive ERP tools to consider
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Proactive referral tools
A) Give me 5 Proactively approach top employeesAsk them to identify and then contact the Best manager they ever had Best team leader Best idea person or innovator
Best person that "runs into" burning buildings Best problem solver Best sales person that beats you Best student in college that was so smart
Best mentor Best technical skilled person Best international talent Best customer service person
Best external replacement for you when youre promoted
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Proactive tools
B) Reach out to job references for referrals
Identify top performing hires from last year
Call their references that said accurate things
Thank them
Ask them Do you know anyone else as good?
Ask them to be a future reference source
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Proactive tools
C) Most wanted list forrelationship building
Executives identify a list of gamechangers
and potential magnet hires at the beginning of
the year
Employees are asked to seek outthese highly
desirable individuals and to build a relationship
with them over social media(Relationship recruiting)
When they eventually agreed to consider becoming
a referral speed hiring is required
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Strategic action #4
Broaden the programand expand its eligibility
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Strategic action #4
Broaden the program
Add on-boarding referralsproactively ask newhires for referrals during on-boarding (Eli Lily)
Add college referralsthe college population is
well connected through social networks, so add areferral sub-program forcollege hires and interns(Endeca, Intuit)
Add referrals for executive positionsadvanced
ERPs also cover openings for executive positionsFocus on boomerangsencourage your
employees to target your best corporate alumni
(also allow them to make referrals)
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Strategic action #4
Broaden the program
Add internal movement referrals - have a
referral program that is designed to encourage
internal movement. The best practice firm Booz
Allen has a Career mobility team (Also MS,
Cisco)
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Expand program eligibility
Expand eligibility
Executives are encouraged to refer - a white
glove treatment recruiter can be assigned to
encourage executives to make referrals (Deloitte)
Managers and HR are made eligiblemanagers
and those in HR are also well connected, so they
should be eligible to make referrals (Accenture)
Note: you can help minimize conflicts of interestbyoffering the option of contributing any ERP reward to
charity. It can also be a significant motivator for those
that are not driven by bonuses (Accenture, DaVita)
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Expand eligibility
Expand eligibility to non-employees
Open up referrals to non-employees including
Family
Contingent workers
Consultants and vendors
Customers
Board membersCorporate alumni(Internosis, Clearlink, CACI, Verinon)
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Next: A long list of
tactical action steps that candramatically improve results
A ti t
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Action steps
Tips for improving referral volume
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Best practices for increasing referral volume
Hold referral eventshold physical referral
events and virtual meetups in order to garner
attention, to educate, and to get "spot" referrals
(Monster.com)
Alertssend targeted alerts to the most relevant
employees with a successful referral track record
in order to make them aware of your current need.(CACI International and Quicken Loans)
Competitionfriendly internal contests between
teams can dramatically improve results (Deloitte)
i f i i f
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Best practices for increasing referral volume
Harness social networksclosely integrate
referrals with your firms social media effort
Recognize managersset targets, make it a
promotion criteria and then track, report,recognize and reward individual managers forhigh referral rates within their team
I l b i i l f
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Increase volume by requiring less upfront
Accept profilesat least initially, allow LinkedIn
profiles in lieu of resumes
Accept just names instead of requiring the full
resume, accept names only (Childrens hospital inDallas pay $100 just for name in key jobs
even if they are not hired and 25% of the names
result in a hire)
Action steps
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Action steps
Educate your employees
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Education and help
Provide them with hands on help
Provide virtual referral coaches
Offersample social media profiles and providetemplates that can guide employees on how to
develop contacts and relationships online Offer to critique their profile or their blog
Provide them with storiesdevelop "story
inventories" that employees can access and thenuse to "sell" the firm to potential referees
G l h t i t
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Google has a story inventory
A story Inventory for recruiters and employees
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A ti t
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Action steps
Set referral expectations
in order to minimize junk referrals
S tti l t ti li it j k f l
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Setting clear expectations can limit junk referrals
Expectations before an employee refers (guidelines)
1.We are exclusively seeking superior individuals
that will make our firm significantly better
2.Because we only want the very best we expect
no more than 3 referrals per employee a month
3.Throughout the referralprocess we expect you
to put the firms best interests first
4.Except in extraordinary cases, we do not want
referrals from relatives or individuals that
approached you and asked to be referred
W d th f ll i i f ti
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We need the following information
Provide the following 6 pieces of information
1. The job title or req # you are referring them for
2. How you know or have assessed their work
3. Assess and then tell us about their skills and
knowledge and how they are superior
4. Assess and then tell us about their cultural fit
so we do not dilute our culture
5. Assure us that you have sold them to the point
where they will accept an interview, if asked
6. Honestly rate them with a A+, A, or B+
Action steps
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Action steps
Referral cards can have a high impact
Referral cards can be powerful
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Referral cards can be powerful
Your customer service just now was exceptional.I work for the Apple store and youre exactly thekind of person wed like to talk to.
If youre happy where you are, Id never ask you toleave.But if youre thinking about a change, give me a call.
This could be the start of something great.
Electronic versions of referral cards
http://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=Ghttp://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=Ghttp://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=G -
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Electronic versions of referral cards
Electronic referral cards
An alternative is to provide employees with
electronic referral cards to send to their social
media contacts (the cards can havea tracking codeto ensure that the employee gets credit for the
referral)
Action steps
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Action steps
Utilize high-impact
but low-cost rewards
R d
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Rewards
Action steps for improving rewards
Realize that the average bonus amount generally
falls between $500 and $1,500amounts above
$1,500 have proven to have little impact
The best ERPs never pay "equal" bonuses andmost vary it byjob, location and competitor $
"Grossing up"bonuses (so that they are in effect
tax-free) really WOWs employees
Pay off quickly andconsider aprize patrol
approach to add excitement (Quicken)
R d
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Rewards
Inexpensive rewards to consider
A referral dinner/luncheon held once/ twice a
yearwith the CEO to celebrate referrers
A $25 gift / Starbucks card for your 1st referral
A handful of free movie tickets for the family
First choice at vacation, schedule or other
desirable work items
An example rewarding frequent referrers
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An example rewarding frequent referrers
Expedias frequent hire club
$1000 plus a travel coupon for each additional hire
Action steps
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Action steps
Technology features to consider
Referral technology features
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Referral technology features
Impactful technology features
1. Referrals are tagged and prioritized in the ATS2. The referring employee gets an e-mail thank
you within 24 hours
3. The referred candidate gets a thank youphone call within 24 hours
4. The employee is notified via e-mail when areferral is scheduled for an interview
5. Interviews can be scheduled by the candidateon a web site (Alaska Airlines)
6. Relevant job openings are pushed to the right
employees (With their permission)
Technology features
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Technology features
Technology features (continued)
6. Employee referrals can be made directly fromtheirmobile phone
7. Referring employees have a referral scorecard
8. Employees and candidates can track progressduring the process (Accenture & Aricent)
9. A+ and A rejects are told what they must do to
improve their chances10.An e-newsletter is sent quarterly to A+ and A
rated referrals that were not hired in order tobuild a relationship
Action steps
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Action steps
Administrative actionsfor improving program results
Administrative actions to consider
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Administrative actions to consider
Improve responsivenessresponsive is the #1
critical success factor so prioritize the handlingof referrals and develop service leveltimelines
Dedicated recruiters a dedicated ERP
recruiter can improve candidate relationshipmanagement (CRM) and much more effectively
sort and expedite top referrals (CACI)
Expedited interviewingmake a commitmentto interviewall A+ and A quality referral
candidates for key jobs within a certain number of
days (Owens Corning)
Administrative actions to consider
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Administrative actions to consider
Measure quality of hiremeasure the on-the-job
performance and the retention rates of new hiresfrom referrals and then use the information toimprove the ERP
Conduct a follow up interviewafter asuccessful referral, send a recruiter to interview theemployee in order to identify best practices and toask for additional referrals (Amazon)
Develop a referral program SLAincrease theresponsiveness of both line managers and HR byinstituting service-level agreements that spell out
expectations. (Aricent)
Action steps
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Action steps
Avoid these 4 high impact
ERP program killers
The 4 most impactful program killers
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The 4 most impactful program killers
Do not allow executives to win the argumentthat
you dont need a formal ERP program andmarketing effortbecause its part of their job
Do not withhold rewards during the new hires
probationary periodAvoid referral spam where a high volume of
messaging causes your targeted employees to
eventually ignore all referral messagesAvoid sending employee referrals to apply on
the standard corporate careers website (not tagged)
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Any questions ?
Did I succeed giving you a handful
of useful ideas?
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