Sourcing a candidate during the first stages of a company’s life — and even at later stages — employee referrals offer the simplest channel for getting the talent you would like to grow your company. Employees can refer candidates with ease by simply logging in to the worker portal on an ATS like Freshteam. Employee referrals are considered such a lucrative sourcing channel because they are available with variety of advantages:

Advantages:

1. Referrals Reduce Time to Hire

According to HR Domain specialists, referrals are 55 percent faster to hire.

Employee referrals provide immediate access to talent since they’re sourced through the private connections of your employees. This cuts from the hiring process tons of your time that might rather be spent on the sourcing and screening cycles, coordination, negotiation, etc.

2. Referrals Improve Quality of Hire

A large a part of the worldwide workforce is formed of passive candidates. Even with the recent shift within the job market that has increased the quantity of candidates trying to sourcing employment , the highest talent in most industries is usually already employed in great and secure jobs. This means they could not be actively trying to source opportunities, though they’ll be hospitable considering new roles. Referrals are an excellent thanks to reach such candidates. Since your employees are already wholly conscious of your vision, mission, culture, and atmosphere, they will spread the word about why people should consider working for your company.

A LinkedIn study holds that referrals are the most efficient way through which individuals discover jobs.

3. Referrals Reduce Cost per Hire

Referrals reduce cost per hire due to various reasons:

Your employees partner with you to source candidates.Referrals make the initial screening easier.The time to hire is reduced, meaning all costs associated with the process are also reduced.Job advertising costs are cut.

4. Referrals Boost Retention Rates

Referrals give your new hires the prospect to know your company from an employee’s point of view before they even start working for you. That means referrals know what they’re signing up for. They have friends within the company who can help them settle in quickly, reducing attrition and boosting retention. It’s also true that employees who are willing to refer their connections have faith within the company and are likely to remain longer. In a sense, your referral program are often an employee satisfaction check, too.

5. Referrals Can Give Your Hiring Team a hand 

When you are scaling or trying to fill positions that are hard to fill, you’ll always use an additional pair of hands working alongside you. Employee referrals are an ideal go-to channel once you don’t want to expand your hiring team only for a season.

6. Referrals Attract Culture Fits

Referrals also make it easy to draw in people that slot in with the culture. Referred candidates already know someone within the company and are conversant in what the culture is like, which suggests those referrals are more likely to be people that are drawn to the culture within the first place.

7. Referrals Promote Your Employer Brand

No amount of Glassdoor reviews or any kind of culture videos can match up to the words of somebody who works and understands within the company. When your employees reach bent friends and family to ask them to pursue open roles, they also equip their connections to become potential brand advocates.

8. Referrals Help Attract Prospective Customers

When your employees build awareness and recognition of your brand among their connections, they’re not just tapping potential candidates — they’re also creating prospective customers. Your employees’ connections might vouch for your organization within the companies they work for, resulting in positive word of mouth for your brand in larger circles.