Employee referrals are a cost-effective and efficient recruitment method, significantly reducing hiring expenses and time to placement. Referrals tend to yield higher-quality candidates, improve retention rates, and can lead to more profitable hires, emphasizing the importance of encouraging an employee referral program. To implement this, organizations should define their value proposition, set goals, appoint a leader, create incentives, and actively promote the initiative.

1. Stop wasting
time and money!

2. Start
using employee referrals.

3. If you’re not encouraging employee
referrals, you’re wasting time, money,
and effort.

4. Lots of
money.

5. Fact:
Referrals are
cheaper.

6. Traditional recruitment methods can
cost upwards of $18,000. Employee
referrals usually cost less than $1,000.1
$1,000
$18,000

7. Fact:Fact:
Referrals are faster.

8. Time to placement2
Career
sites
Job
boards
Employee
referrals
45 days
39 days
29 days

9. Fact:Fact:
Referrals are
more effective.

10. Employee-referred candidates make
up just 6.9% of total candidates
but account for 40% of total hires.3

11. Fact:Fact:
Referrals reduce turnover.

12. Retention after 2 years4
Traditional
recruiting
Employee
referrals
20%
45%

13. Bonus: Because the referral adds a
layer of pre-screening, they have a
350% reduced chance of being fired.5
T E R M I N A T E D

14. Fact:Fact:
Referrals are
more efficient.

15. Referred candidates are hired at a
rate of 1 to 3. Non-referrals are hired
at a rate 1 to 10.6
Referred candidates
Non-referrals
1in3
1in10

16. Fact:Fact:
Referrals yield higher
quality employees.

17. Referred employees are 25% more
profitable than their peers.7

18. Fact:Fact:Fact:
Referrals ensure
a good fit.

19. Your employees will screen out
anyone who doesn’t fit.

20. Fact:Fact:Fact:Fact:
Referrals broaden
your reach.

21. Referrals bring jobs to the attention
of people who aren’t actively looking.
We’re hiring!

22. So what are you waiting for?
Get started!

23. Step one:
Define your employee
value proposition

24. Know what you offer
potential employees.

25. Step two:
Set a goal

26. How many referrals do
you want? By when?

27. Step three:
Pick a leader

28. Designate someone to
champion the project.

29. Step four:
Create incentives

30. You’ll get the best
response if you
give your employees
a little something
for their efforts.

31. Step five:
Spread the word

32. Your employees won’t
start making referrals
unless they know
you’re looking.

33. But don’t
stop there!
After the launch, check in, remind
employees, and give updates on
your progress.
!

34. Download The ultimate
guide to employee
referrals e-book.
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Want more tips?
The ultimate guide
to employee referrals
™
How to engage employees, save millions, and drive Employee Success

36. Achievers inspires Employee Success™
.
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37. Sources:
1. VanNest, Allie. “INFOGRAPHIC: The Cost of Hiring.” GetHired.com blog. GetHired.com, 30 May 2012.
2. “Jobvite Index.” Jobvite. n.d. Web. 28 Apr. 2013.
3. Ibid.
4. Ibid.
5. Staffing.org, 2011
6. Dr. John Sullivan and Associates research 2008–2011
7. Burks, Stephen, Bo Cowgill, Mitchell Hoffman, and Michael Housman. “The Value of Hiring through Referrals.”
University of California, Berkeley, Haas School of Business. 26 April 2013.