The Power Of Employee Referrals

Recruitment through employee referrals is an established method and will continue to be the most preferred medium for sourcing employees in large numbers.

Apeksha Kaushik, Bureau
Organisations often rely on employee referrals for identifying the top talents, according to recruitment managers. This is considered to be one of the most trusted hiring methods in an organisation; mostly because of the credibility of the existing employees. In fact, 6 out of 10 companies use this source to hire potential candidates, stated Srikanth Rengarajan, executive director and president, ManpowerGroup India. He mentioned five major reasons why this technique is one of the most trusted sources of hiring:
. The quality of the personal connection with the potential candidate. Existing reference of contact, both for the potential employee and the employer, creates a sense of orientation.
. Employee referrals have the highest applicant to hire conversion rate.
. They tend to understand better about their role and accelerate their performance at a quicker rate; due to prior understanding about the company’s background; and its culture.
. A well-designed referral programme produces high retention rate.
. New hires that are a better fit may require less on-boarding time, lesser training, and they may reach maximum productivity levels faster.
No ‘social’ threat
Experts across sectors have resonated in conversations and in RecruiteX report that employee referrals will be the most effective talent sourcing medium. It ranks as one of the most preferred modes of hiring in 2014 along with online job portals, according to a survey conducted by

Raghavendra K, vice president and head-HR, Infosys BPO stated in the RecruiteX that the impact of social media in the talent domain will be huge but this will not impact the use of employee referrals. “Social media will change how we source, hire, engage and retain talent. There will be a shift from the traditional print media towards online mediums. Organisations will have to have a definitive strategy around how to harness the power of social media. This will, however, not diminish other traditional methods like employee referrals.

 Focus on ‘game changers’
While almost every company is adopting employee referral programmes to hire talent, it is indeed crucial to stay ahead of the competition. There are companies who are investing in technology and resources to make this process more efficient. “In our company, we have mapped all the potential employees from the available talent pool and approach and monitor them via our own database with the help of in-house software. Though, the process is time consuming, it helps us in capturing niche talent,” said CK Singh, senior VP-HR, Patel Engineering in the RecruiteX report.
Highlighting the key focus areas to strengthen employee referral strategy, Sanjay Singh, director-Human Resources & Admin, Cairn India said, “The game-changers will be, using focused external referrals on social mediums and in employee referrals, matching the EVP promise to both potential and current employees and providing a work environment of career growth to employees.”