Top misconceptions about employee referrals (Part 2)

HR Trends September 3, 2015

The increasing success of employee referral programs today shows that existing employees are the best source of recruitment for an organization. They not only help the organization hire best quality talent, but also play a significant role in reducing attrition and improving productivity. But not all employee referral programs produce the same result. Some of them fail to produce the desired quality results and this mainly happens because Organizations believe in myths related to employee referral programs which in turn reduces its overall effectiveness.

Employee referral programs have given an upswing to many popular myths over the time, mostly based on false assumptions made by recruiters and employees. We have listed below 7 such most common myths about an employee referral program. Organizations need to stop believing in these myths to ensure that their employee referral program plays a more effective role in their overall recruiting strategy.

• Management involvement is not necessary

Most recruiters assume that an employee referral program can run very well even without management endorsement, which turns out to be a big mistake in the end. In order to make employees believe and participate, top management should publicly advocated employee referral program.

Employee Referral Programs do not need investment

The management team sometimes assume that there is no need to invest much in their employee referral program. They feel that there is no need of any investment apart from announcing cash rewards, which does not hold true. Organizations today need to invest a lot of time and money to brand and promote their employee referral program and ensure that they have an efficient program in place.

Employee Referral Programs can run on their own

Recruiters often have a misconception that employee referral programs pretty much run on their own once they are implemented. Recruiters are required to proactively engross with employees to seek referrals and try innovative ways to ensure that employees remain actively engaged with the referral program.

Rewards & recognitions are not required

Most organizations implementing employee referral programs believe that rewards have a small role to play in generating employee referrals. However this is not true, as rewards and recognition have a very significant role to play in motivating employees to refer, many organizations try to implement innovative reward programs. These rewards can be monetary or non-monetary based on recruiter’s preference or organization’s policy. At times simply recognizing the employee publicly also motivates and encourages other employees to participate in the referral program.

No guidance required for employees on how to find a suitable candidate

Recruiters and hiring managers sometimes have a misconception that employees do not need help in finding suitable candidates to refer. This is not always true as employees are often clueless about how to find a good candidate to refer. Trainings and workshops on identifying the best fit candidate from their connections can increase the effectiveness of the employee referral programs and can get good quality referrals from the employees.

Making a referral is time consuming

Employees often do not participate in the referral program due to the misconception that employee referral programs are tedious and time consuming. Organizations nowadays manage their employee referral programs with employee referral tools that make referring a candidate easy and seamless. Employee referral software makes it easy and convenient for the employees to make referrals.

Any referral is a good referral

Employees make the mistake of assuming that any candidate who approaches them for a referral should be referred and do not check if the candidate fits the position. However, employees should be educated about how important it is for them to refer a candidate who actually fits the job, as it saves a lot of time of the recruiter. Employees should in fact be advised to conduct a preliminary screening to determine fitment before referring someone for a particular position. In addition to this tools like ZALP help employees to find the most potential matches for a job requirement from their social media connections.

Every organization can get the maximum output from their Employee Referral programs once they start involving everyone taking a top to bottom approach and ensure continuous participation from all the stakeholders.


Related: Top misconceptions about employee referrals (Part 1)

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