3 Reasons Why You Should Hire Employee Referrals

HR practitioners and researchers alike agree that employee referral programs are an excellent source-of-hire. Cost-effective, yet sporting a significant ROI, referral programs enable corporate recruiters to leverage their employees’ networks to reach quality talent pools. With a faster time-to-hire than average, referred applicants are recognized as more productive additions to the workforce.

Employee Referrals Make for Better Employees

1. For one thing, referrals are 15% less likely to resign than non-referred employees. You can’t go wrong with higher retention rates – they result in a more stable workforce, and less time spent on future recruitment activities. In short, your team is better equipped to be more productive, with fewer breaks in the rhythm and dynamics of the work structure.

2. Referrals are more likely to be a better cultural fit for your company. They have insider information about the work environment – namely, the referring employees – and are better attuned from the get-go as to if it could be the right place for them.

3. On that note, referrals are often more serious employees. Your workers wouldn’t just recommend anybody, because they have a reputation to uphold among their colleagues. Also, they are able to pre-screen the referrals beforehand, as they already have a good idea as to what sort of workers your company is looking for.


Of course, the number of referrals you receive fully depends on the level of engagement among your employees within your referral program. When it comes to increasing participation, motivation is the key factor. Demonstrate why they should become actively involved in making referrals – and reciprocate their efforts by recognizing their behavior. Show them that they are essential to the success of your program – and by extension, to the hiring of great candidates. Click here to learn more on how to motivate employee participation in referral programs.

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