Importance of the Referral for the Recruiter
The recruitment process has undergone a 360-degree channel. Now, candidates should look for you and as a result, recruiters referral have started depending on the referral system for effective results in recruitment. The hiring strategy for most firms these days is – make a referral, take a reward – motto for employees. As an employee, haven’t you seen the notices and received emails that say “Refer a Friend and Get the Rewards” or the ones that say, “Get Your Best Friend to Work Here and Make it Fun.”
And, now, the referral program is at the heart of all recruiting strategies.
Important, yes, critical now, yes, effective, of course, yes!
Let’s take a look at the top three reasons why this works as the most effective strategy in talent searching, spotting, and hiring!
Applicants hired from a recruiters referral program usually start work faster than applicants found through job boards or other job sites, etc. That the closing rate for positions found through recruiter referral programs are much quicker and smoother, compared to other methods, has been established firmly by all studies [courtesy Jobvite]. The reason is that the employee referrals enjoy the ‘highest rate of conversion’ simply because the filtering for candidates is better. When current employees refer their friends for any job position, one level of filtration is already done by them since they would also want to ‘earn the referral bonus,’ and, so there is an incentive to do the choosing and filtering well. Also, since they are referring a friend, they would not want to go wrong on job position and job skills match!
It is seen that referral hires enjoy greater job satisfaction and stay longer. While hiring, it is difficult to ensure how long would ‘stay’ in a company. However, it has been seen that for referral hires, the duration of stay is much longer when compared to hiring done through other methods. No specific reason has been discovered but it is seen that this happens generally because of smart filtration done at different levels and more stringently. One level is being already done by the friend who has referred. This is another incentive for recruiters to use this strategy.
In a recession-hit economy, another important reason why this scores over other methods are because it is cost-effective. Compared to other methods, this works out quite cheaper. Other methods involve costs for search, setting up interviews, filtering the right candidates and then hiring them. Thus the recruiter referral costs escalate in ‘more traditional methods’ since the costs for search is more, getting the candidates in for the interviews becomes a long process, difficulty in closing positions, more time and effort spent in filtering the right candidates for the job and all the steps involved in the process. This just means that the ‘costs’ escalate proportionately and effectively.
Recruiters Referral work like magic in these tough times of recession economy and competitive talent hunting and hiring!
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