The employee referral program is one of the significant strategies for recruitment. Also, proven as the most productive method of hiring. Hiring employees via the reference of existing employees is a really easy and quick way to hire. This blog is all about the employee referral program.
So, let’s start with the topic and know what the actual definition of an employee referral program is and what are the benefits and drawbacks.
What is the Employee Referral Program?
An employee referral program is a recruitment system created for employees to get involved in its recruitment process. The idea of involving employees in the recruitment process has always worked. New employees are hired based on reference given by the existing employees of the company. The recruiter can automate their recruiting process with the help of ATS (Applicant Tracking System).
Benefits of Employee Referral Program:
Don’t be confused about how much difference an employee referral program will make to your recruitment process. Just check out the three significant benefits for considering an employee referral program:
1. Time is Money:
Saving time is more efficient for any business, and it is also the priority to the companies. So the good news is hiring referred candidates will save the recruiters’ time if you hire referred candidates then it will speed up the process by excluding extra screening steps.
2. Recruiting Cost will be Less:
As you are counting about time and effort, you should see another side of the coin, i.e. cost. Just imagine you need not to pay anything for a job opening advertisement. You can also cut your outside recruiting cost.
3. Increase in the Workforce:
Allowing current employees to recruit their friends and family for the open position will also lead you to create a robust workforce. Referred employees will feel more engaged towards their work from day one. They will feel like home because there is one person in the company known to him/her.
Disadvantages of Employee Referral Program:
There are N numbers of benefits for an employee referral program. But at the same time, you cannot avoid the disadvantages of an employee referral program. Let us see some of the drawbacks of the employee referral program:
1. Charges of Injustice:
Suppose the company or recruiters use only the employee referral program then it could lead to the charges of injustice from the candidates who are rejected. So the company must keep a balance between employee referral programs and other sources.
2. The shortfall of Ideas:
Some recruiters stick on only one recruiting process, i.e. an employee referral program, which might lead to a lack of creative ideas.
3. The disappointment of the Referral Program:
Companies always set a guideline for the bonus. Some companies make such guidelines for the referral employee, which results in disappointment for the non-referral employees. And this will turn to the disconnection with the employees.
Finale of Employee Referral Program:
Somehow the end will be well after recruiting through an employee referral program. There is some software that makes the work of a recruiter easier in hiring the referral employees.