Who Has Formal Employee Referral Programs?
of companies report having a formal
employee referral program
71%
4
86%
plan to launch a program in the next 18
months.
36%
Referrals Continue to be a Primary Source of Hire for Employers with Referral Programs
5
0% 10% 20% 30% 40% 50% 60% 70% 80%
76%
9% 16%
64%
0% 9%
27%
Referral Program Management Structure
Currently have program
Planning to launch program
% of External Hires that are Referrals
27%
0 - 25%
26 – 50%
51 – 75%
76 – 100%
Don’t know
47%
38%
4%
4%
7%
of companies with referral programs report that more than half of their external hires come from their referral program.
8%
of companies report meeting or exceeding their referral program hiring goals.
25%
of companies don’t actually have hiring goals for their program 25%
6
Increasing the Quality of the Candidate pool is the top goal for companies.
GOALS OF REFERRAL PROGRAMS
10%
0%
30%
20%
50%
40%
70%
60%
90%
80%
100%
Increase Quality Increase Quantity Decrease Time to Hire
Increase Retention Increase Diversity
Other Don’t Know
Currently have program
Planning to launch program
93%
67% 61%
36%
58%
27% 27%
49% 32%
18% 9% 2% 2%
Referral Program Structure
REFERRALPROGRAM MANAGEMENT
Centralized program management is the most common management structure. 0%
10% 20% 30% 40% 50% 60% 70% 80%
76%
9% 16%
64%
0% 9%
27%
Referral Program Management Structure
Currently have program
Planning to launch program
76%
64%
Centralized
70%
60%
50%
40%
30%
20%
10%
0%
80%
9% 0% 16% 9%
27%
Decentralized Hybrid Not yet decided
Currently have program
Planning to launch program
7
8
Tools Used to Manage Program
Currently have program
Planning to launch program
64%
55% 50%
18% 14%
27%
3% 0% 18%
Spreadsheets ATS 3rd Party Other Not Decided
9
Referral Program Incentives – Cash is King
of companies offer or plan to offer cash incentives for referral hires.
59% Cash awards to employees for referral hires are the most common incentives employed.
Average Cash Incentive Paid for Referral Hires
Less than $1000
26%
73% 69%
2% 0% 18%
4% 9%
$
$
Currently have program
Planning to launch program
Between $1000 and $4999
$5000 or greater Don’t know
18%
10
Thinking Beyond Cash
of companies offer or plan to offer non-cash incentives for referral hires.
25%
54% Prize Drawings
35% Others
27% Company Logo Items
15% Vacation Days
11
Referral Program Enhancements
Social Referrals
Mobile Accessibility
Improved Marketing
Non-Employees
Improved metrics
Complete Overhaul
15
All of the 3rd party referral tools are based on social
referral functionality.
Companies planning to launch referral programs are more likely to use 3rd Party Referral Tools.
Currently have
program
14%
Planning to launch
program
27% 27% All of the 3rd party referral tools are based on social
referral functionality.
3rd Party Referral Tools
How Satisfied Are You With Your Current Referral Tools?
SATISFACTION WITH CURRENT REFERRAL TOOLS
16
of respondents who are Very Satisfied use a 3rd party solution.
Very Satisfied
Partially Satisfied
Neither Satisfied or Dissatisfied
Partially Dissatisfied
Very Dissatisfied
of respondents who are Partially Satisfied use ATS Solution,
63%
83%
18
Individuals Beyond Employees Included in Program
Customer 48%
100%
Social Media Connections
48% 60%
Other 26%
20%
Alumni 70%
80%
Planning to launch program
Currently have program
Vendor 35% 40%
of respondents with programs already include non-employees in their programs.
22%
An additional 17% plan to expand their programs to include non-employees.
17%
of respondents planning to launch programs with include non-employees in their programs.
45%
Keys to an Effective Program • Make it easy for employees to refer • Educate your employees one what makes a good hire • Get execuOves involved • Thank everyone who parOcipates • Avoid the “black hole” -‐ provide updates • Recognize individuals with referral hires • Pay bonuses when the new hire starts • Track and report referral metrics
19
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