Top 5 Myths About Employee Referral Programs

July 7, 2013

12:00 pm

Companies looking to recruit top talent often turn to their current employees for referrals, but new data from Zao.com, a social employee referral management platform, reveals limiting the referral process to only current employees — and leaving out the rewards — is a mistake.

When rewards were offered, 41 percent of referral hires came from non-employees — including trusted business contacts and friends. Additionally, the data revealed that referral hires are 69 percent higher when companies offered a reward to contacts outside the direct network of employees.

“When many organizations look for quality hires, they typically look internally for referrals,” said Ziv Eliraz, founder and CEO of Zao.com. “However, we found that limiting the referral process to only current employees is a mistake. In fact, our data shows that when a company extends its referral program to its trusted business network, the quality and the amount of referrals increases.”

Want more info on referrals? This infographic shows the top five myths about employee referral programs:

Zao Employee Referral Myths

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Meg Rayford is a communications consultant based in Northern Virginia. She previously spent two years as the Director of Public Relations for a nonprofit startup, where she learned a lot about providing clean water for impoverished countries, even within the confines of a bootstrapped startup. She is the editor of Tech Cocktail, and she develops media strategies for companies in Washington, DC and Virginia. You can read her most recent work in the marketing chapter of the upcoming book, "Social Innovation and Impact in Nonprofit Leadership," which will be published in Spring 2014 by Springer Publishing. Follow her @megkrayford.

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