Using existing employees to acquire new talent, has benefits for employer, employee and candidate.
We all know that having an ‘insider’ in a company can make the job hunting process a whole lot easier. Your CV lands in the hiring manager’s hands a lot faster, you stand a greater chance of being called in for an interview and the hiring manager may already want to meet you before even reading your CV.
Plus, if your insider works for a company in which referral bonuses are awarded, then it’s a win-win situation, not just for the both you, but also the company.
How referral employee bonuses work
Companies seeking talent often devise an incentive system in which they offer their current employees a bonus if they refer a candidate who is hired for a vacant position.
Even if a referral will not result in a hire, if viable some companies will award bonuses to the employee you suggested the referral. However, the catch is that many companies will request that the employer remain with the company for at least a few months before paying the employee who referred the new hire.
The incentives a company will offer may include:
Benefits for the candidate
Getting a word in via a trusted insider can help you secure an interview and even bypass the normal application process. Plus, you’ll receive first-hand knowledge about what you can expect should you work for the company.
Benefits for the employee
If you’re the referee, by suggesting someone who possesses the right skills and company fit, you’re boosting the company’s employer brand – the candidate is more likely to speak positively about the company you work for. Making a solid referral often means a boost in your morale. With the monetary compensation that usually comes with employee referrals, it gives you the incentive to refer qualified candidates, rather than just anyone in your network.
Beyond the financial reward, you’ll have the opportunity to work with someone you can trust and who has a good work ethic.
Benefits for the company
For the employer, there are a host of benefits to hiring candidates who have an insider in the company. For one, the referred employee is more likely to be more productive. Also, they’re more likely to stay on with the company for longer, possibly because they feel loyal to the person that referred them.
On top of this, hiring a candidate based on referral, reduces the workload and saves time, strengthens the relationship with existing employees and improves employee retention.
More and more companies are realising the benefits of referrals, and are taking advantage of these. If you're able to get a company insider to put in a good word for you, make most of the opportunity.
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