Employee Referrals – Why It Works Out for Everyone
How did you get your last job? We hear all the time that networking is essential to looking for a new job. No matter where you are in your career, the connections you make inside and outside of work help you learn about opportunities and great companies to work for. Say you worked with someone in the past who now works at a great company you now want to work for, that former colleague is a great connection to help you learn more about the company and new opportunities. We like to work with people we know and trust.
We trust recommendations from friends, and suggesting a friend for an open position is no different. Employee recommendations carry a lot of weight in the hiring process. This is why employee referrals aren’t just great for people looking for jobs, but companies get better people too. Here are just a few of the benefits referrals for job seekers and companies.
For job seekers
You get inside info about the workplace and company culture, helping you decide if you want to work there You know if you are suitable for this company and where you fit in You have a person HR and hiring managers can talk to about your application.
If you get the job, it’s a lot easier starting a new job with a familiar face to show you the ropes. Nothing makes onboarding easier than a friend to help you along.
Take it from someone who went through this experience:
For the organization
People who already work in the organization are likely to refer someone they know is good match for the position. After all, great people know other great people!
Here are some stats on how referrals work from the other side of the equation:
Employee referrals are more likely to get the job. A study by Jobvite found that employee referrals have the highest applicant-to-hire conversion rate, accounting for 40% of all hires. Applicants hired from a referral are productive faster. Jobvite found that 88% of employers rated employee referrals above all other sources for finding new highly productive employees. Referred employees integrate into company culture more quickly. From the survey, 65% percent of referred employees were very satisfied with job fit and 50 % were very satisfied with how well they fit within the company. Referral hires are more satisfied with their job and stay longer. The study found that 47% of referred employees stay with a company over 3 years.
For referring employees
They get to work with the people they know and trust. They also get to say: “I helped my friend land a job“ and “I helped my company grow“. Sounds pretty cool, right? Not to mention many companies offer a reward to employees who help the company find great people. No one says no to gifts!
Since we established an official employee referrals program, the results have been amazing. Employee referrals are one of the top sources of applications and in the number of people hired. So maybe it’s time to finish reading this post and look into your LinkedIn contact list—maybe you know someone who works at Infobip. Ask them everything you want to know about the company!