Employee Referral Crossfire

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Session from the ERE Expo Spring 2011, presented by Master Burnett and Gerry Crispin

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Employee Referral Crossfire

  1. 1. Employee Referral CrossfireIn Search of a Bright Spark Gerry Master Burnett Crispin
  2. 2. ERP Myths or Simple Truths?Every company should have a referral program.ERP hires fill more openings than any other Source of Hire. The more the merrier!ERPs produce better hires- EEs are less expensive, perform better and stay longer.Referral and ‘recommend’ are synonymous.Every employee should be asked to refer.Every employee who refers is equal.Referral programs are equally effective for every job family and every location.Employee referrals are the real deal. Other referrals are not worth pursuing.Rewarding Referrals with money is good. Bigger rewards are better.Referred candidates should receive special treatment.Employees who refer should receive special treatment.ERPs negatively impact diversity.Referrals that employees seek out are better than referrals initiated by candidates.Referral programs require little work once they are introduced.Social Networks will drive referrals through the roof. Gerry Master Burnett Crispin
  3. 3. Just About Everyone Has A Referral Program 7.7% 7.7% 7.7% 71.2% 5.8%Source: CareerXroads Colloquium, 9/2010
  4. 4. What Percentage of Your Hires Are From ALL Referrals? 28.7% Responding # % Referral HiresSource: CareerXroads Colloquium, 9/2010
  5. 5. Referrals Job Boards Career Site College Direct Sourcing Rehires 2010 Sources of Hire [External] Temp/Contract-to-hire 3rd Party Print Career Fairs Walk-ins OtherSource: CareerXroads SOH, 3/2011
  6. 6. How Many Referrals Will Yield 1 Hire? Responding % 31.8% 18.2% 21.4% 20.5% 8.1% REFERRALSSource: CareerXroads Colloquium, 9/2010
  7. 7. How many Referrals does it take to make one hire? 10.3 (N= 240,000 referrals)Source: CareerXroads SOH, 3/2011
  8. 8. What Type of Referral Gives You The Most Hires? % Response For Each Type Specific Positions Only General Positions EmployeesSource: CareerXroads Colloquium, 9/2010
  9. 9. How Often Do You Promote Your Employee Referral Program? 11.8% 7.8% 31.4% 11.8% (i.e. specific campaigns) 17.6% 19.6%Source: CareerXroads Colloquium, 9/2010
  10. 10. Source:CargillCareerSite
  11. 11. What Sources Are Productive For Diversity?Employee Referrals Source: CareerXroads SOH, 3/2011
  12. 12. CANDIDATE EXPERIENCE: Do you provide or promise externally referred candidates any special treatment? (i.e. unique to being a referral like a guarantee of an interview, promise feedback, etc). NO 82.0% Yes 18.0%Source: CareerXroads Colloquium, 9/2010
  13. 13. How Do Candidates Learn About Your Referral Program?Source: CareerXroads Colloquium, 9/2010
  14. 14. ‘EXPERIENCE’ of CANDIDATE BEING REFERRED: Indicate which of the elements below are a part of your ER program. Candidate is required to indicate the name of the Referring Employee in the application process. Candidate is also asked about the quality of their relationship to their referral (i.e. friend, etc.)Candidate is invited to contact recruiter after rejection even ifthey were not selected for final slate.Source:CareerXroads Colloquium,9/2010
  15. 15. ‘EXPERIENCE’ of EMPLOYEE MAKING REFERRAL: Indicate Which Elements Below Are Part of Your ER Program. All referring employees receive an automated acknowledgment to thank them for making a referral. Employee is surveyed about the quality of their relationship to their referral.Source:CareerXroads Colloquium, 9/2010
  16. 16. BONUS- GENERAL: Do you offer bonuses? No, our program is a basic "Attaboy". No monetary incentive or product or service awards are given. 13.6% 79.5% Yes, a raffle or contest is periodically used 15.9% to incent referral behavior.. Yes, even those making referrals that do not become 9.1% hires get something or have a chance to win something.Source:CareerXroads Colloquium, 9/2010
  17. 17. BONUS- SPECIFIC: How Much?Source:CareerXroads Colloquium, 9/2010
  18. 18. PROGRAM FORMALITY: Does Management Yield Results?70.00%60.00%50.00%40.00%30.00%20.00%10.00%0.00% Formal, Dedicated Formal, No Informal Managed Ad-hoc, No Budget/Staff Dedicated Budget/ Management Staff 2006/2007 2006/2007 TP 2008/2009 2008/2009 TP 2010/2011* n=267 n=40 n=252 n=45 n=41Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)
  19. 19. EXTERNAL HIRES PRODUCED: Overall versus Top Performing50.0% 46.3%45.0% 41.1%40.0%35.0% 35.0%30.0% 27.1% 26.2%25.0%20.0% 2006/2007 2008/2009 2010/2011* Overall Sample Top Performing Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)
  20. 20. ERP VERSUS MAJOR JOB BOARDS: Beyond Cost per Hire Measure Employee Referral Job Board DifferenceCost per Hire $2,306 $1,671 +$635(CpH)1Offer Acceptance 94.7% 78.4% +16.3%%Voluntary Turnover 6.8% 22.1% -15.3%< 1 YearVoluntary Turnover 5.2% 14.9% -9.7%> 1 YearInvoluntaryTurnover 0.9% 4.3% -3.4%< 1 YearQuality of Hire 4.21 3.47 +21.3%QoH2 Source: DJS Private Client Study, 2008
  21. 21. COMMON QoH MEASURES: Real QoH Measurement is Rare Bonus Compensation MBO Attainment Promotion Rates Actual Performance Manager SatisfactionPerformance Appraisal Retention Rates 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 2010/2011* 2008/2009 TP 2008/2009 2006/2007 TP 2006/2007 Source: DJS ERP Benchmark Study (Formerly AIRS/DJS)
  22. 22. ERP CANDIDATE KNOWLEDGE: Fortune Hunters Do Exist, But Not In NumbersSource: DJS ERP Participant Experience Study
  23. 23. REWARDS AND PARTICIPATION: The Money Doesn’t Matter60.0%50.0%40.0%30.0%20.0%10.0% 0.0% $- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00-10.0%Source: DJS ERP Benchmark Study (Formerly AIRS/DJS), 2008/2009
  24. 24. GET THE PITCH RIGHT: Market Opportunity Not IncomeSource: DJS ERP Participant Experience Study
  25. 25. PRIORITIZATION: How Comfortable Are Employees With It?Source: DJS ERP Participant Experience Study
  26. 26. PRIORITIZATION: How Comfortable Are Employees With It?Source: DJS ERP Participant Experience Study
  27. 27. NEGATIVE IMPACT ON DIVERSITY: Not In Most Cases
  28. 28. TOP PERFORMING PROGRAMS DIFFER: Communications are KEY!
  29. 29. TOP PERFORMING REQUIRE EFFORT: Great ERP’s Rarely Just Happen!Source: DJS ERP Participant Experience Study

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