July 7, 2013
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:
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