Employee Referral Program - A Tool to reduce recruitment cost

Introduction: Employee referral program is one of best tool in attracting the talent in both short span of time and also reduction in costs. Employee referral programs are considered as one of the most reliable recruiting sources. 

An employee referral program can be effective by:

1. Design the job description: A well designed jobs always gives a clear message to employees on the requisites of the position such as qualifications, skills, experience and expertise.
2. Design the employee referral program: Design the employee referral program which includes the eligibility and participation of employees, process, Service Level agreement (SLA), e-mail address for sending referral resumes, Cash awards and rewards for various positions and levels, timelines for credit of cash awards.
3. Publish the program: Once the employee referral program is finalized, publish it through various modes like often send e-mails to employees, postures and newsletters.
4. Dedicated Human Resource professional: Employee referral programme effectiveness depends on the scheme responsiveness or feedback given for referrals and this can happen only with appointment of a dedicated human resource professional.  Tracking, coordinating interview, provide feedback to all applicants and employees referred, provide metrics related to employee referral program would be key responsibilities on this human resource professional. 
5. Employer Branding: Arrange a company brochure which gives details of products, services, geographic locations, customers, markets, financials and benefits provided by the company. Arrange a video of employees sharing their experience and happiness for working for the company.
6. Monitor the program and continually improve:  The employee referral program has to be monitored regularly by various metrics and also formal and informal feedback received from employees. Adopt process enhancement at the earliest for the program to be effective.

An employee referral program can be attractive by:

• A catchy program name, punch tagline.
• Allow employees to post the job positions in their social media.
• Organize referral events or interviews only for referrals on a specified day.
• Reward first time referral and reward each referral who gets to the interview.
• Provide non cash awards for highest number of referrals.
• Double the cash award for niche and hot jobs.
• Adjust the cash awards based on the salary of the position.
• Organize periodic award ceremonies and public display of each successful referral.
• A thanking e-mail or a handwritten note or a call from a senior executive to an employee for his/her contribution in bringing the talent for high level or hot or niche positions.
• Arrange a video with successful employee referrals on their experience in the organization at various stages - interview, post interview, interviewers, offer stage, joining and post joining.
• Publish the highest number of referrals, success stories of referrals in newsletter.