10 Employee Referral Program Best Practices

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10


Your Employee Engagement Strategy

Culture

• Pulse Surveys

• Recognition

• Community Circles

Talent

• Applicant Tracking

• Employee Referral

• Onboarding Tools

Performance

• Performance Mgmt.

• Online Learning

• Certifications

Wellbeing

• Fitness Monitoring

• Diet Wellness

• Fitness Challenges

• Mental Health


Employee Referrals – A key component in today’s millennial workforce

Employee

Referral

Employee

Engagement

Additional

Components


1 Know What You Want to Achieve

Develop realistic goals and objectives, in line with your Employee Engagement strategy.

RetentionOnboarding

& training

Lost

productivity

Five Elements of Hiring ROI

Referrals are #1 at 46% retention after one year!

Days to hireDirect hiring

costs


Monitor Performance and Adjust - Participants


Then Monitor Performance and Adjust - Stakeholders


Then Monitor Performance and Adjust - Stakeholders


Embrace Social

You cannot scale your employee referral program without embracing

social media.

2

A Fundamental Communication Shift

Over 50% of the

world’s population is

under 30 and 96%

of them have joined

a social network

The fastest growing

segment on

Facebook is 55-65

year-old females

While you watch this,

100+ hours of video

will be uploaded to

YouTube

Over 50% of the

world’s population

is under 30 and

96% of them have

joined a social

network

The fastest

growing segment

on Facebook is

55-65 year-old

females

While you watch

this, 100+ hours of

video will be

uploaded to

YouTube


Prioritize, Tag and Promote

Not all job openings are created equal.

3


Promoting and Prioritizing Jobs

Hot Jobs


Support Your Employment Brand

Successful organizations achieve alignment at every level of the organization.


Recruiting and Your Employer Brand

Create brand alignment Plan for conflict

Recruiting practices must be

consistent with your branding.

Negative experiences at

interviews affect future

purchasing decisions and may

be socially shared.

Protect your company’s brand reputation. Referral conflict situations

will happen. Decide and document how they will be addressed.

Multiple employees

referring the same

person

Family

relations

Referred candidate

already in database

What happens if the

referrer leaves the

company midway

through the process


Who can contribute?

Yes, employees are your main participants, but consider who else might contribute to your employee referral program.

5


Create a Referral Ecosystem

Create a referral ecosystem to help attractthe quantity and quality of talent required tobe successful in your market space.

Eliminate friction within the system so thatjob openings are visible when and wherethey can be most accessible to qualifiedcandidates.

Fuel the ecosystem with a strong WIIFM*value proposition that resonates for all thepartners within the ecosystem.

*WIIFM = What’s In It For Me

Assess Your Referral Universe

Company Confidential © 2017 Perks.com All Rights Reserved. Company Confidential © 2017 Perks.com All Rights Reserved.

Educate, Educate and EducateSuccessful Employee Referral Programs require training6


Participant Training

Participant

Training

Video Tutorial


Manager Training

Manager

TrainingVideo Tutorial


Make it Fun, Make it SimpleGame mechanics help grow employee engagement and that continues to be true in the referral process.

7

Simple, Easy, Integrated

Encourage Alignment with Game Mechanics

Boost engagement with badges and leaderboards

Use challenges to focus and excitement

Departments/locations compete for the greatest

number of hires

Add interview bonuses

Add quarterly draws

Embrace “kickers” for hard to fill positions


Define Your Communications Plan

Everyone Needs a Game Plan8


Employee Referral Communications

Strategic in nature to all employees about engagement Tactical as to how Referrals are communicated

Education

Communications Messaging

Content Success

Stories

Creative

Alumni

Employees

Prior referrers

Referring

employee

Referred

candidate

Prior referrers

Referrers

Non-

participants

News postings Feedback Surveys


Not All Referral Programs Are Equal

4 tires and a steering wheel do not make these the same9


Legacy Referral Programs

Why don’t workers participate in current Employee Referral Programs?

Underfunding the program or

severely discounting the

reward

Not enough visibility

Offline or paper processing

No recognition as part of the

referral process

No overall engagement

strategy

Not analyzing statistics every 12-18 months

Probation periods greater than 120 days


Recognize and RewardIntrinsic and Extrinsic motivation increase employee engagement levels. Intrinsic Extrinsic10

Extrinsic engagement is

a vital aspect of some of

the most successful

ERPs companies have

created thus far.

Can be in the form of

compensation through

points/dollars, perks, vacation

days or even promotions.

Intrinsic engagement is an

absolute must when

creating an optimized

employee referral program.

Research indicates that intrinsic

rewards are an excellent way to

motivate employees to complete a

task through autonomy, mastery

and purpose.


What Rewards Work Best

Employee Referral rewards differ from other Employee Engagement programs. Your rewards should feed the intrinsic/extrinsic nature of your employees. Here are some ideas:

Offer a charity donation option, and try to instill in your employees that they should refer people because the team wins “when it has the best players.”

Create more interest with prize drawings, bonus supplements, and small rewards to first-time referrals.

Draw people in with nominal rewards for referring qualified prospects, even if they aren’t hired.

Occasionally, consider the idea of a stunning bonus to get everyone’s attention . This could be just for hard-to-fill

positions or positions that are extremely expensive to fill.

Consider a points payout that allows the user choice. Points that can be redeemed in a catalog with merchandise,

gift cards or debit cards.

31


Let’s Recap the 10 Keys to Success

32


1. Know What You Want to

Achieve

2. Embrace Social

3. Prioritize, Tag and Promote Job Postings

4. Support Your Employment

Brand

5. Who can contribute?

6. Educate, Educate and

Educate

7. Make it Fun, Make it Simple

8. Define Your Communications

Plan

9. Not All Referral

Programs Are Equal

10. Recognize and Reward

1

6

Aligned

Employee

Engagement &

Referral

Programs

33


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10 Employee Referral Program Best Practices