Successful employee referral schemes are a powerful recruiting tool for businesses – they provide significant cost savings and help companies to make more productive hires who stay long term. The problem is that increasing referrals still tends to fall quite low down on the priority list for companies.
While the short-term work involved in implementing an employee referral scheme is greater than posting on job boards and instructing recruitment consultants, we think the long-term gains make it well worth the effort!
Don’t just take our word for it though, let’s have a look at some of the key stats…
9 Key Statistics
1. Highest ROI
82% of employers rated employee referrals above all other sources for generating the best return on investment (ROI)
2. Better quality hires
88% of employers said that referrals are the #1 best source for above-average applicants
3. More likely to be hired
Employee referrals are 3-4x more likely to be hired than non-referral candidates
4. Better retention rates
Employee referral candidates have an average retention rate of 46%, compared to the 33% retention rates of organisations that only use career sites
5. More affordable
Hiring through employee referrals saves companies at least £2,270 per hire
6. More likely to accept the job
Referred candidates are more likely to accept the job
7. Reduce time to hire
Employee referral candidates are 55% faster to hire, compared with employees hired through other channels
8. Good for diversity hires
Employee referrals are the #1 most productive source of diversity hires
9. Attract passive candidates
Employee referral schemes are more likely to attract passive candidates than other recruitment channels
These are just some of the key stats which show how running a successful referral scheme can be transformative for companies.
If you’re interested in implementing a referral scheme or improving your existing one, Real Links’ employee referral platform can help!
Find out more at RealLinks.io or email firstname.lastname@example.org and one of our team will be in touch.