Nicole BuetersTalent Acquisition BeneluxMay 19, 2011

Make Philips GrowHow referral enables the growth of Philips

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Content

• Definition• Why referral?• Concept• Creation• Implementation• Evaluation

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Employee ReferralDefinition

Recruitment method in which the current employees are encouraged and rewarded for introducing suitable

recruits from among the people they know

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Why referral?

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Why referral?Summary various external articles/research

• Costs are lower• Quality of inflow is higher• Turn-around time is quicker• Staff turn-over of referred employees is lower

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• External agencies produced the lowest quality of hire• Targeted sourcing, referral and internal labor market yield the best quality of hire

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Why referral is an important source for PhilipsQuality

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Why referral is an important source for PhilipsLabor market

• About 15% of the (Dutch) labor market potential are active job seekers and approx 50% are latent job seekers

• With the standard recruitment methods we are not able to reach an important part of our labor market potential

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The network of our employees is large and we have easy and quickaccess to that network

Why referral is an important source for PhilipsSpeed

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The costs per hire will decrease. For Philips the priority is:

• Quality• Reach• Speed

Why referral is an important source for PhilipsCosts

Who believes referral is an important source for recruitment?

Who has an effective referral program in place?

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ConceptWhat did we have in mind?

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• One structured program for Philips in the Netherlands– Coming from scattered small initiatives in departments & sectors– Limited use of networks

• Ability to Introduce candidates for– Current vacancies– Pre-defined profiles for inflow referral pool

• Use as a tool for the roll out of our Employee Value Proposition

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CreationThe road to a successful referral program in a multinational

• Clear guidelines and policies– Terms & Conditions– Privacy Aspects

• Approval and support from all stakeholders– HR Community & Sectors– Works Council (Centrale Ondernemingsraad)– Privacy Committee

• Backend for administrative processes to facilitate candidate handling and bonus payouts

– Automation of communication• Clearly defined process steps with roles and responsibilities

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Creation - What does the program look like? Easy, simple & clear

• Candidate introductions– One Referral Portal– Vacancy or pre-defined pipeline profiles

• Eligibility– All Philips staff except recruitment

• Bonus– Amount depends on the job grade– If hired within 6 months after intro– Paid in month of start date by vacancy owner

• Communication:– Philips employee and candidate are kept updated throughout the

process (via automated e-mails)

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ImplementationIntroduction & Communication Plan

ReferralPortal

HR teams:Presentations,communication

materials

Recruiters:Presentation,

training, comm. tools

Corp Comm:Toolkit with

communication materials

HR community:Article about

referral program

Posterson all

locations

Banners sectorsites

Articles sector

magazines

EmployeesMailing

hard copy

Banners career

pages (int.) Banners

HR websites

Philips e-newsletter

Philips magazine Hard copy

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Brochure

BannersPoster

Magnet

Implementation - Material

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EvaluationContinuous Improvement

• What went well?– High candidate quality– High inflow– Many hires - 9% of total hires so far– Administrative backend worked well for bonus payouts– Up-front agreed guidelines help to settle disagreements

• What did we learn?– A Referral candidate is no “regular” candidate– Philips colleagues have high expectations– Backend process was not optimized for recruiters– Be ready for large volumes

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ImplementationFollow-up 2011

• Targeted boost of referral program• Encourage line managers to activate their network

• Enable Philips employees to be an ambassador…