The benefits of a successful Employee Referral Program (ERP) have a real impact on your bottom line. An ERP:
- Is a much cheaper alternative to outsourcing your recruitment to an external agency that could charge a fee of up to 20% of a new employee’s gross annual salary.
- Increases employee engagement within the corporate structure of your business. Employees feel empowered knowing they helped build the team.
- Delivers higher retention rates.
Of course, in order to have a successful ERP you need active and engaged employee participation. Fostering the interest is important but rewarding successful referrals is best.
Incentives keep your employees continuously active in sending new rockstar talent your way. Your first thought may be the obvious financial reward system. If employees are given a bonus on their referrals, of course they’ll continue to refer, right?
Close, but not quite.
Although rewarding ERP participation financially can be effective, it isn’t the end all be all way to get people involved. In fact, Google doubled its referral bonus at one time to encourage additional employee referral activity and they found that it was surprisingly ineffective according to a report on Quartz.com.
So, what else can you do to reward employees for sending top candidates your way?
Update your Website
Do you have a section on your company’s website dedicated to career opportunities? This is a great place to feature your current employees. Be it written testimonials or videos starring your most involved ERP participants, let them provide the content to lure in more talent. Offering a spot in your next recruitment short as incentive for participation will give your employees something fun and different to shoot for.
Not to mention, their involvement will encourage them to share within their networks, only increasing the chance of that next rockstar will come walking through your door.
Personalize Your Perks
Every employee is different, with different preferences and drives. It can be highly motivating to your staff if you offer different options to choose from. Some ideas include:
- Extra time off
- Company stock
- Charitable contributions given in their name
- Paid educational course of their interest
- Group outings to reward team or departmental participation
By giving people a choice, they are more likely to participate knowing they reward is something they could really want or use.
Recognizing employees who make successful referrals is a sure fire way to ensure their continued participation. Other employees will also see that active ERP engagement is encouraged and an important part of corporate culture. This is also one of the most inexpensive ways to have a direct and positive impact on an active employee.
A pin, plaque, certificate, or other tangible way to showcase an employee’s ERP success is a great way to foster additional participation. A personal phone call from upper level executives shows just how important an employee’s role within your ERP plays. A recognition luncheon or dinner, inviting the most successful ERP participants fosters camaraderie and further interest within the team.
The Bottom Line
Employees want to contribute and respond well when recognized for their efforts. Taking the time to give them options and reward active engagement will do wonders to ensure continued participation and will further foster a rockstar-attracting successful ERP.