A lot of organizations have a Refer a Friend program. On average, between 5 and 10 percent of company vacancies are filled via referrals, while the actual potential of this recruiting strategy lies between 30 and 50 percent. Information from interviewed HR-managers and employees shows us that the majority of employees don’t spontaneously think about sharing vacant positions within their company. More so, employees openly admit that a reminder to refer coworkers is welcome.
Another problem we are faced with is that employees often do not know how they can refer someone. Sometimes they aren’t even aware that they can contribute to the recruiting strategy via referrals.
However, this can be solved by digitalizing the Refer a Friend program. This program brings transparency and simplicity to the referral process. By using 1 centralized platform, like that of Nakama HR, that informs employees and makes it easy for them to share jobs via social media or even to directly send it to people of interest. An important advantage of this strategy is that everything is tracked and measured. Not only can you continuously improve your strategy with constant tracking & measuring, you can also build substantiated rapports about your progress.
A referral program doesn’t need to limit itself in only giving cash rewards whenever the applied candidate is recruited. To be fair, a reward is often unnecessary. How do you find out? By surveying your employees. This will aid you in getting an answer to the question of giving a reward or not and what kind of reward to give. However, the better thing to do is to create an experience. An easy way to achieve this is by applying gamification to the referring process. Rewarding points for various referring actions is a good system. An example: an employee receives one point for simply referring a coworker for a certain position and receives one hundred points if this person gets the job. The total amount of points will then be converted into money and donated to a charity. By using this method, you make the referral program fun and you give employees a meaningful reason to participate in the process. Naturally, this example does not work in every company. Sometimes, cash or non-cash rewards (for example: a free dinner) are the better options.
A disadvantage of the gamification strategy is that it is hard to apply to your referral program if you manage said program with classic means (email and Excel). You’re better off digitalizing your referral program. A digitalized platform will make the referral process much easier and gives you the opportunity to fill thirty to fifty percent of your open positions via referrals!
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