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.
New York, NY (PRWEB) June 13, 2013
Referrals are widely known to be the number-one source of hire in terms of quality. However, typical referral programs are limited to employees only, despite research by HR experts such as CareerXRoads and Dr. John Sullivan recommending companies reach out beyond their employee base for referrals.
New data from Zao.com (http://zao.com), a social employee referral management platform, indicates that referral hiring is boosted substantially when rewards are extended to trusted non-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.”
According to the new data, 41 percent of referral hires came from non-employees -- including trusted former employees, business partners, and vendors -- when rewards were offered. Further, Zao.com found referral hires are 69 percent higher when companies offered a reward to contacts outside the direct network of employees. Additional studies have also shown that hires from referrals produce about 25 percent more profit and referred workers are 20 percent less likely to quit their jobs. To view this data, as well as other findings, check out the infographic compiled by Zao.com here.
“It comes down to this: If you give your external network an incentive for their recommendations, you’ll gain more referral hires,” Eliraz said. “This helps employers have a wider variety of applicants, while allowing trusted non-employees to feel appreciated for their efforts.”
In addition, Zao.com is holding a complimentary webinar on June 26 at 1 p.m. ET to discuss these findings. Participants will learn how to optimize referral programs, understand how rewards programs work, and discover how they can get started. To register, visit https://attendee.gotowebinar.com/register/7825471995851220736.
Zao is a social employee referral management platform that helps companies hire well, fast. Creating a more fun and engaging referral program, Zao assists employers to gain higher quality hires and better teams. Zao allows potential referrers to automatically search through their social networks for qualified candidates and make a referral in just one click. Learn more about Zao by visiting http://www.zao.com/.