One of the most crucial aspects of a successful business is having a strong network of qualified candidates. Finding the right applicants, on the other hand, can be difficult. You do not, however, have to complete this duty entirely on your own.
Your current employees can be quite beneficial in attracting top talent to your company. They can contact potential prospects inside their close business circle if given a little push and an attractive employee referral bonus.
What is Employee Referral Bonus?
An employee referral bonus is a monetary reward handed to your current employees when a candidate they recommended is hired for a vacant position. The incentive is normally given after the new hire completes a certain amount of time with the company.
Hiring Managers and HR professionals are excluded from being part of this program as recruiting candidates is part of their job responsibilities. Doing so helps businesses avoid being unjust to their other employees.
Why you should consider giving employee referral bonuses?
Here are some of the advantages you can get simply by rewarding employees who suggest others.
Helps minimize the recruiting cost
Employee referral bonuses are a feasible choice regardless of the size of your company. You can not only attract top talent, but you can also acknowledge the efforts of your current employees.
Because it takes less time to recruit, the cost of hiring reduces automatically. Furthermore, employee referral bonuses help you save money on outsourcing agencies and job board advertising. As a result, the entire recruiting process is productive and efficient.
Promotes the quality of hire
Because the candidates are referred by your current employees, you can be confident of locating those who meet your hiring criteria. This is because, unlike a job board or an external recruiting agency, your current employees have a greater awareness of your candidate needs. Thus, helping you improve and maintain a high-quality candidate pool.
Aids in faster vacancy filling
Applicants prefer learning about a company from its current employees. This informs them about the company’s onboarding process as well as other critical needs. As a result, applicants can tailor their resumes to meet the company’s hiring requirements. All of this leads to quicker recruitment. A faster hiring procedure also contributes to a positive candidate experience.
Strengthens employee retention rate
Employee referrals aid in the retention of both newly hired and existing employees. New hires tend to remain longer since they are fully aware of the company culture and norms. They are likely to accept the position because they resonate with the same.
Existing employees, when rewarded for a reference, feel recognized and valued. As a result, they are able to stay with the organization for a longer amount of time.
Both of these factors have a significant impact on the employee retention rate.
Improves employer brand
Because potential prospects prefer to learn about a company from its current employees, recognizing and appreciating your team members becomes even more crucial. When you give employee referral bonuses, your employees are more likely to actively propose applicants. This, in turn, enhances the image of your company.
After all, acquiring and maintaining great talent requires a strong employer brand.
What Are The Types of Employee Referral Bonuses?
Here are three different types of employee referral bonuses to consider.
Employee referral bonus in the form of cash
You can motivate your employees by giving them a monetary reward. Do this whenever you hire one of their referred applicants and completes a probationary term.
During team meetings, recognizing your employee’s contribution to the hiring process can be a great mood booster.
Employee referral bonus in the form of thoughtful prizes
Instead of a monetary reward, you can consider providing meaningful presents to your employees. A sponsored meal, spa treatment, or even the newest gadget on the market are all possibilities.
Employee referrals are a great way to connect with eligible applicants while also building a strong employer brand. To upgrade your efforts, you can rely on recruiting software like Jobsoid.
Jobsoid makes it easier to find better prospects by allowing you to manage all of your recruitment activities in one place. You can track employee referrals and view the various candidate sources of applications. Furthermore, this cloud-based recruiting software includes a number of features that can assist you in streamlining your hiring process.
For a pleasant recruiting experience, get started with a free Jobsoid account today!