Why You Already Have Your Most Valuable Recruiting Tool

February 17, 2014 at 10:00 PM by Kathleen de Lara

recruiting tipsYour company’s most rewarding asset is sitting at least three feet from you, and for the most part, costs close to nothing.

Perhaps your company’s net worth is only as good as its network. Or maybe not — we just like the way that sounds. In any case, there’s no doubt that your company’s employees are one of your best assets — not only because they’re vital members of your company’s foundation, but also because they can connect you with others who can help build a successful work team.

Your employees are connected to a vast network of qualified candidates.

Hard-working, smart team members are likely to know others who are similarly diligent and sharp. Brownie points if these folks are also open to a new opportunity. If successful team members are willing to put you in touch with someone they believe will be a good fit for the company, pay close attention to the recommendation. For one thing, these current employees who already demonstrate a high standard of work are very likely to refer a candidate who passes their individual, specific criterion for ample productivity. In addition, these referrals can also give you the first pass on candidates that have yet to hit the job market. Untouched talent pools don’t come around often, may we remind you.

Candidate referrals reduce your company’s recruiting costs.

If time equals money, receiving referrals for open reqs are your best bet for saving both time and money. The cost of posting a job advertisement can range anywhere between zero and $500. Some of the only costs of getting connected to a potential hire, however, includes something like an email introduction, a URL to a LinkedIn profile, and maybe a few breaths on several exchanged words. If it isn’t already clear, getting a referral can save you the effort of creating and paying for a job post, and using other talent acquisition tools and technology that can be costly, confusing, and time-consuming.

Referrals are in it for the long haul.

The Jobvite Index reports that in the grand scheme of things, although only a small percentage of applications come in through employee referrals (6.9%), nearly 40% of these hires account for a company’s makeup. In addition, candidates who are referred are hired in a shorter amount of time than direct applicants, and have a higher retention rate. Referrals tend to stick between one to three times longer than candidates hired through career sites or job boards. If your employees or other network connections are approaching you with referrals, consider yourself spoiled.

The quick version? Candidate referrals are optimal because they onboard quickly, contribute great work, and stick around longer. Reach out to your current team to take on the role of recruiting ambassadors. Not only does it reduce your recruiting costs, but it makes your job a lot less stressful — employees know exactly what you’re looking for and what kinds of candidates would be a suitable, long-term fit for the company.

Stay tuned for our blog post next week in which we’ll share top tactics for implementing an effective employee referral program at your company.

candidate outreach

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