How To Make Your Recruitment Referral Programme A Success

A team of people sit around a table talking about the new hire, who one of them knows and has referred from the role. They all look casual, confident, relaxed and part of a team.

Referrals have proven to be an incredibly cost-effective and reliable method for attracting and retaining top talent. This approach works best when you already have a dedicated and efficient team, as they’re likely to know and recommend people who not only possess the right skills but also will seamlessly blend into the company’s culture. Encouraging your employees to bring in their contacts can save substantial recruitment costs, shorten hiring times, and increase the likelihood of a successful hire. This is because employees tend to recommend candidates who they believe will excel in the role and contribute positively to the workplace, ensuring a mutual benefit for both the company and its workforce.

3 Steps To Make Your Recruitment Referral Programme A Success

  1. Name it: Make the referral scheme attractive to your employees and build a brand around it. Name the scheme and give it slogans, logos and all branding essentials to keep in the mind of your employees.
  2. Build it:  Make the programme as professional as other elements in your company. Invest in promotion, education and maintenance and include senior managers as participants, sponsors and promoters.
  3. Promote it: Let your employees know about the successes of the scheme so they don’t think it’s just another company initiative that has no impact on them. If they see and hear the benefits, they will be more likely to get involved.

Engaging employees

Remember that managers cannot lead and engage with the scheme without using it. The entire company can become engaged in recruitment to build a culture of referrals. A referral programme will not develop simply because it exists. Staff will participate in the referral programme for many reasons, but usually, they will be financial. Advertise what the person referring receives in monetary reward and the exact process that will lead to them receiving the money. Do they get paid as soon as their referral is employed, or do they have to wait until after probation? Constantly update the recruitment referral programme, promote the different elements of the process, and promote the positive effects of referrals. Let employees know about the available roles and the type of people you’re looking for. Promote peaks in the need for referrals and promote roles seasonally.

Contacting candidates

After getting a copy of the candidate’s CV from your referee, the candidate should be approached by a well-briefed member of the recruitment team. Generally, they will be aware of the company and waiting for your call, but you should sell the role and your company as you would to any other applicant. Candidates who are referred should experience some customisation in their recruitment process to differentiate them from speculative candidates. Remember that your conduct throughout the whole recruitment process is likely to be reported back to your referring employee, so you should look to keep the highest level of professionalism at all times.

Review progress

Look to evaluate the efficiency of the referral scheme regularly. Give the candidates,  and if appropriate the employees making referrals, good feedback on why people get through and why they do not.

Frequently Asked Questions:

How do we measure the success of our recruitment referral programme beyond just the number of hires?

To comprehensively assess the success of a recruitment referral programme, it’s important to look at several key performance indicators (KPIs) beyond just the immediate hires. Consider measuring employee engagement with the programme, the retention rates of referred hires, the performance evaluations of these hires after a set period, and the programme’s cost-effectiveness compared to other recruitment methods. For instance, track how often employees participate in the programme, monitor the long-term success of referred employees in your company, and analyse the cost savings achieved through this method. These metrics will provide a holistic view of the programme’s impact on your organisation.

How can we maintain employee interest and participation in the referral programme?

Keeping the referral programme engaging over time requires creativity and ongoing communication. Regularly refresh the incentives offered to ensure they remain appealing. Consider implementing tiered rewards to encourage not just one-off referrals but sustained participation. Sharing success stories of referrals within the company can also highlight the programme’s impact. Additionally, engaging employees in periodic surveys to gather feedback on the programme and implementing suggested improvements can keep the initiative responsive and relevant to your workforce’s preferences.

What is the best approach to handle referrals that don’t result in a hire?

Maintaining a positive experience for employees who refer candidates is crucial, even if those referrals don’t lead to a hire. Provide timely feedback to the referrer, explaining, where possible, why the candidate wasn’t the right fit while expressing gratitude for their participation. This approach ensures transparency and shows appreciation for the effort, motivating employees to continue participating in the programme. It also opens a dialogue for how future referrals could align more with the company’s needs.

Can referral programmes unintentionally introduce bias, and how can we mitigate this?

Referral programmes can risk reinforcing homogeneity if not carefully managed. To mitigate this, actively promote the value of diversity within the referral programme, encouraging employees to think broadly about their networks. Implementing blind recruitment practices for the initial screening stages can help minimise bias. Regularly review referral data to identify any patterns of homogeneity and take action as needed. Educating your workforce about unconscious bias and the importance of diversity can also help create a more inclusive referral culture.

What legal considerations should we consider when implementing a recruitment referral programme?

Legal compliance is paramount when establishing a recruitment referral programme. Ensure that your programme adheres to employment laws, including those related to privacy, non-discrimination, and equal opportunity. Be transparent with both employees and candidates about how their data will be used and secured. It’s advisable to consult with legal experts to review your programme’s policies and practices, ensuring they align with current legal requirements and best practices. This protects your company and fosters trust among your employees and candidates.