Comprehensive seminar

Submitted by

ANITHA.K

UNDER THE GUIDANCE OF

INTERNAL GUIDE

Prof. SUMATHI.R

EMPLOYEE REFERRAL PROGRAM

INTRODUCTION:Employee referral is an internal recruitment method employed by organizations to identify potential candidates from their existing employees. An employee referral scheme encourages company's existing employees to select and recruit the suitable candidates from their social networks

Employee referral programs are essentially used by organizations to hire great talent while reducing acquisition time and cost

DEFINITION:Employee referral is defined as recruitment method in which the current employees are encouraged and rewarded for introducing suitable recruits from among the people they know.

Employee referral scheme’s allows existing employees to screen, select and refer the best candidates to the recruitment process

Referrals from existing employees have been shown to be some of the best employees through recent survey by SHRM. A study has shown that employees referred by existing employees better and last longer on average. There are many benefits from a well designed and implemented employee referral program in addition to getting better employees

Morale booster for existing employees

Referral bonus Reduced costs per hire

Higher retention rates

Higher return on investment

Less effort for recruiting departments

Building a successful employee referral program1. Keep the process simple

where to submit up-to-date compensation

2. Solicit supervisor participation Active engagement and support

3. Communicate the Benefits for Employees Awards

COMPANY PRACTICES

Accenture's best practice in referral recruitmentAccenture won ERE award for its most innovative employee referral program

They adapted ERP to become the most effective low-cost/high-quality source.

Number one source of candidates, both quantity and quality i.e., percentage of hires in the year 2008-2009 -14 % to 33%

Cost saving-EUR 600,000 in 3months Job satisfaction and commitment- from both the old and new

Awareness-jumped from 20% to 99%

Smart reward scheme instead of higher rewards -world trips, EUR 100 inviting referee for an interview

Referral cards-electronic referral cards

Good administration-increase employee involvement &transparency.

Employee scorecard-view through own individual online webs

Employee referral excellence award winner 2009- AccentureERE is the world's largest forum for recruiting professionals, and their annual awards are considered to be one of the most prestigious in the industry. Winners are chosen among a list consisting of the most progressive and dynamic recruiters in the nation, representing some of the most prominent organizations.

The ERE Recruiting Excellence Awards are chosen each year from an audience of the most progressive, interesting, and dynamic recruiting professionals. It has a rich history and its winners have become widely respected in the field

ERE Media holds a yearly global competition aimed at identifying the very best “next practices” in recruiting.

Every Each year, ERE receives hundreds of applications in eight recruiting program categories from well-known organizations like Microsoft, IBM, Ernst & Young, Intuit, Accenture, Yahoo!, and from less well-known but equally innovative organizations like DaVita, and Tata.

Since inception, Accenture in year 2009 the program has grown the percentage of hires attributed to employee referral from 14% to 33%. Employee awareness of the referral program has jumped from 20% to 99%, an astounding feat .The quality of referrals also improved significantly this results in competing globally and win ERE award.

IBM

Sampark” which means “reaching out”, epitomizes the essence of the Employee Referral Program at IBM Daksh.

Sampark is a very powerful tool in the hands of the employees to engineer their work environment and has played a very critical role in building the culture that IBM Daksh is known for today The objective of IBM Daksh Employee Referral Bonus Policy is designed to supplement IBM GPS's normal recruiting activity and enhance the pool of diverse, qualified candidates available for hire into IBM GPS.

Sampark helps creating an environment where in not only to get the opportunity in order to work with friends but also get reward for doing so. It is a key resourcing channel for the organization .

3. ScopeIn this company referral program is aimed at inviting referrals only for permanent / regular - full time hires, fixed term hires and interns positions

ERP advice will be made to payroll for the eligible referrers after the referred candidate has been employed at IBM for a minimum of 90 Days. Payouts will be made as a part of the payroll disbursement and will be subject to all applicable taxes

The program has a two layer execution strategy.

The first layer is a central team in TAU whose core focus is to drive the Sampark initiative within the organization. The second layer is that of Sampark Ambassadors who work in specific projects. They spearhead the program in their respective projects as an additional responsibility.

Sampark Program

Layer

TAU layer

Sampark

Ambassadors

Sampark Ambassadors Incentive slabs: Employees are identified as “Sampark Ambassadors” to act as brand ambassadors to interface between their competencies/locations and the recruitment team. These employees are entitled to payouts and incentive slabs other than the referral bonus amount details of current slabs

Cross competency referring:Referral payouts schemes will be governed as per the approved payouts applicable to the Respective applying competency /GoesE.g. For an employee referring candidates for a position in the Kolkata location, will be paid as per the approved referral payout scheme for Kolkata.

Round One networkRound One is a first of its kind internet platform that connects jobseekers with

company employees so they can interact and earn job referrals, it aim to create a meritocratic and transparent system which levels the playing field by removing the need for 'contacts'.

Round One’s unique model enables jobseekers to register for unofficial phone interviews with employees in a company, and earn a job referral from them.

How the round one works?

Round One’s primary method of marketing so far has been social media

The revenues of round one have been growing at 25% every month

According to Nishant Mathur, Round One has over 12,000 referrers from 2,000 companies, and 400,000 job seekers registered with its service. They are mostly from the IT, banking, KPO and consultancy sectors

BENEFITS

Reduced Recruitment

Work

Quality

CostLonger Tenure

Diversity of Candidates

Offer incentives and rewards to

employees

Disadvantage

Low-Quality Referrals

Underrepresentation of

Protected Groups

Employee Retention and Productivity

Organizational Behavior Problems

CONCLUSION

It’s safe to say that every company/business has its own Employee Referral Program, whether formal or informal, that they promote to varying degrees at various times. Larger companies with hundreds of open positions, in some cases, have a full-time employee dedicated to running and optimizing their ERP. Smaller companies that hire a few people a year often rely on their employees to refer candidates for those position

A good referral program will have many benefits, both in cost and the time savings

LEARNING OBJECTIVE:

This topic has made me to learn about employee referral program and how it help the company in recruitment process

Employee referrals provide a win situation to all the parties involved – Employer , Employee and the Candidate

More and more firms are resorting to employee referrals and are reaping the benefits.

BIBILOGRAPHY :

https://india.jobs.accenture.com/http://www.referralrecruitment.com/home/accenturehttp://www.ere.net/business outlook 2013