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Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
Updating Your Employee Referral Program
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Updating Your Employee Referral Program

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ERE Webinar from 11/12/08, presented by Dr. John Sullivan.

ERE Webinar from 11/12/08, presented by Dr. John Sullivan.

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  • thank you alot
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  • Great jobs, John. Really appreciate. We are developing an ERP. -Magic
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    • 1. UPDATING YOUR EMPLOYEE REFERRAL PROGRAM Practical Tips That Can Dramatically Improve Your Programs Performance ERE.Net Webinar November 13, 2008 © Dr. John Sullivan www.drjohnsullivan.com
    • 2. Dr. John Sullivan’s summary bio <ul><li>Former Chief Talent Officer of Agilent Technologies , the HP spinoff with 43,000 employees </li></ul><ul><li>Has advised over 250 major organizations in 30 different countries. His appeal is so broad, that work has been translated into 23 languages </li></ul><ul><li>Monthly column in Workforce Management Magazine </li></ul><ul><li>Columnist for the Electronic Recruiting Daily </li></ul><ul><li>Author of eight books and more than 750 articles. </li></ul><ul><li>SHRM called him “One of the industries most respected strategists” & the Best Practice Institute honored him as one of the Top 10 Leading Thinkers in HR </li></ul><ul><li>Staffing.org noted that he was “the father of HR Metrics” and Fast Company magazine called him the “Michael Jordan of hiring” </li></ul><ul><li>He has been quoted by the Wall Street Journal, Fortune, the NY Times, the Financial Times, CFO Magazine and have been interviewed by CNN and the CBS and ABC nightly news </li></ul><ul><li>Currently he is a Professor of Management at San Francisco State University and the chief consultant of the management advisory firm DJS </li></ul>
    • 3. Dr. Sullivan’s current books Coming Soon!
    • 4.  
    • 5. Topics <ul><li>Benchmark firms and performance targets </li></ul><ul><li>Referrals programs in a down economy </li></ul><ul><li>Things to add to increase program performance </li></ul><ul><li>Common errors to avoid </li></ul>
    • 6. <ul><li>Benchmark Firms </li></ul>
    • 7. What is your referral rate? (% of all hires) <ul><li>AmTrust (78%) </li></ul><ul><li>Intel (71%) </li></ul><ul><li>SG Construction (70%) </li></ul><ul><li>Quicken Loans (68%) </li></ul><ul><li>Rackspace Hosting 66% </li></ul><ul><li>Covenant Health (64%) </li></ul><ul><li>Cisco Systems (62%) </li></ul><ul><li>FirstMerit Bank (56%) </li></ul><ul><li>Edward Jones (55%) (with no bonus) </li></ul><ul><li>The Turner Construction Corporation (56%) </li></ul><ul><li>Booz Allen (52%) </li></ul><ul><li>Northrop Grumman Space Technologies (52%) </li></ul><ul><li>Symantec (51%) </li></ul>
    • 8. <ul><li>You must change your ERP </li></ul><ul><li>to fit with a down economy </li></ul>
    • 9. <ul><li>Action areas during a down economy </li></ul><ul><li>You must prove your ROI / business case </li></ul><ul><li>Use OPT to shift the work (Other People’s Time) </li></ul><ul><li>Shift the motivators </li></ul><ul><li>Prioritize jobs </li></ul><ul><li>Increase quality by using proactive referrals </li></ul><ul><li>Reduce the volume of low quality referrals </li></ul>Changing your ERP during a down economy
    • 10. During a down economy… <ul><li>What is the business case justification </li></ul><ul><li>for referrals? </li></ul>
    • 11. <ul><li>“ Employee referral programs are #1 (at leading practice firms) in delivering the greatest volume of hires, an improved quality of hire, and improved retention at all levels.” </li></ul><ul><li>Conclusion of DJS research </li></ul>For external hiring
    • 12. # 1 in ROI <ul><li>Employee referrals 82%* </li></ul><ul><li>Organization's Web site 71% </li></ul><ul><li>Campus recruiting 60% </li></ul><ul><li>Niche job boards 58% </li></ul><ul><li>General job boards 51% </li></ul><ul><li>Search firms 42% </li></ul><ul><li>Networking technology 36% </li></ul><ul><li>Commercial résumé databases 33% </li></ul><ul><li>Career fairs 30% </li></ul><ul><li>Newspapers 15% </li></ul><ul><li>* Satisfaction with the ROI of the source - </li></ul><ul><li>January 2006 survey of 73 large employers with a mean of 139,000 applicants </li></ul><ul><li>Source: Direct Employers/Booz Allen Hamilton </li></ul>
    • 13. The business case for referrals <ul><li>An example of the business results an ERP can produce </li></ul>
    • 14. Business impacts of shifting hiring sources Source: 2003, Major US Healthcare chain, source comparison study Program results Referrals Source A Cost $2,796 $1,877 - $919 Offer Acceptance Rate 95.4% 81.2% + 14.5% Voluntary Turn < 1 yr 9.3% 22.1% + 2.3X Voluntary Turn > 1 yr 3.2% 12.5% + 3.9X Termination rate < 1 yr 1.2% 4.4% + 3.6X Performance results 14.36% Baseline
    • 15. <ul><li>The net gain from the </li></ul><ul><li>performance increase alone </li></ul><ul><li>A + 14.36% improvement in the average revenue per employee is $70,800 per each new hire. For 60 hires , the added revenue is $4.3 million </li></ul><ul><li>Because the better performing new hires will stay longer , the savings would continue over multiple years </li></ul>
    • 16. During a down economy… <ul><li>Shift some of the recruiting work to employees and managers </li></ul>
    • 17. Shift the work to others <ul><li>“ Do more with less” using “OPT” </li></ul><ul><li>Target 50% referrals, so employees do some of the sourcing and selling </li></ul><ul><li>Get employees to build up their social network profiles to attract candidates </li></ul><ul><li>PDA / name dump parties for names </li></ul><ul><li>Blogs by employees to attract </li></ul><ul><li>Events (Bring back 3 names) > </li></ul>
    • 18. Shift the work to others <ul><li>“ Do more with less” using “OPT” </li></ul><ul><li>Encourage employee generated videos (Deloitte) </li></ul><ul><li>CEO calls to candidates </li></ul>
    • 19. Shift the work to others <ul><li>Create a “Friends program” </li></ul><ul><li>Where employees in the same job can answer questions, provide stories and better examples than any recruiter can </li></ul><ul><li>Ask for volunteers </li></ul><ul><li>Pre-screen out all but the best </li></ul><ul><li>Provide them with the referral credit </li></ul>
    • 20. During a down economy… <ul><li>Shift the motivators away from dollar rewards </li></ul><ul><li>Don’t “make it about the money” </li></ul>
    • 21. Motivate by focusing on “helping the team” <ul><li>Convince employees it’s in their best interest to make referrals by… </li></ul><ul><li>Using the “Help the team&quot; approach that emphasizes the employee’s benefit from working alongside great people </li></ul><ul><li>Showing them “who” suffers with a long vacancy or a bad hire (Remind them what it is like to work alongside “Homer”) </li></ul><ul><li>Correlating high referral rates with business goal attainment and high individual bonus rates </li></ul>
    • 22. Change the rewards <ul><li>Emphasize drawings or raffles </li></ul><ul><li>Make the prize something that is “talked about” </li></ul><ul><li>- Trip around the world </li></ul><ul><li>- Trip to the South Pole </li></ul><ul><li>- College tuition </li></ul><ul><li>- Reserved parking spot next to the CEO </li></ul><ul><li>- One on one lunch with the CEO </li></ul><ul><li>- First choice of vacation or shift schedules </li></ul>
    • 23. A parking lot full of BMW’s will impress
    • 24. Change the rewards <ul><li>Provide a cheap gift for those that don’t win </li></ul><ul><li>A $25 gift card or a Starbucks card as a thank you </li></ul><ul><li>Give a coffee card only for first-time participants </li></ul><ul><li>A handful of free movie tickets for the whole family </li></ul><ul><li>A small reward for finding “names ” or “leads,” even if it is not an immediate referral </li></ul>
    • 25. Change the rewards <ul><li>Pins and plaques </li></ul><ul><li>Recognize them with a plaque, award pin, T-shirt , cubical item etc. </li></ul><ul><li>You can also place their name on a plaque or a picture in the lobby </li></ul>
    • 26. Change the rewards <ul><li>Hold a once or twice a year dinner with the CEO to celebrate all those that have made successful referrals </li></ul><ul><li>Let them appear in company advertising - Work with the advertising department to allow individuals that successfully refer an opportunity to appear in regular company product advertising </li></ul>
    • 27. Change the rewards <ul><li>Don’t forget the personal touch </li></ul><ul><li>A handwritten note – a personalized note or call from a senior executive thanking the referrer that made a high impact referral (Amazon) </li></ul>
    • 28. The Army gives a “referral promotion” to PFC before boot camp Promotion for a single referral before your start!
    • 29. Change the rewards <ul><li>If you do decide to use cash </li></ul><ul><li>The average bonus amount generally varies between $1,100 and $1,500 </li></ul><ul><li>Several research efforts have shown that bonus amounts above $1,500 have little impact on increasing referral rates or referral quality in companies that practice the &quot;help build the team&quot; philosophy </li></ul>
    • 30. During a down economy… <ul><li>Prioritize jobs </li></ul><ul><li>Because you can’t do it all well </li></ul>
    • 31. Prioritize positions <ul><li>Do not make all job openings eligible </li></ul><ul><li>Because volume kills quality </li></ul><ul><li>And some jobs fill better using other sources (CFO) </li></ul>
    • 32. Prioritize positions <ul><li>Focus on high priority positions </li></ul><ul><li>Mission critical jobs </li></ul><ul><li>Hard to fill jobs </li></ul><ul><li>Jobs with a high previous referral success rate </li></ul><ul><li>“ Sudden” vacancies in key positions </li></ul><ul><li>High volume jobs (more EE participation/ PR) </li></ul>
    • 33. Prioritize business units <ul><li>Focus on key business units </li></ul><ul><li>Focus on high performing and high-growth SBU’s </li></ul><ul><li>Focus on SBU’s with high referral success rates </li></ul>
    • 34. <ul><li>Be careful </li></ul><ul><li>Some referrals stink </li></ul>
    • 35. <ul><li>Proactive referrals are where, rather than “advertising” to all employees for referrals, you instead… </li></ul><ul><li>Proactively seek out targeted employees and ask them directly for referrals </li></ul>
    • 36. Proactively approaching targeted employees <ul><li>Proactive means to approach… </li></ul><ul><li>Top performers - approach employees that are in the top tier of forced ranking or performance appraisal scores </li></ul><ul><li>Award winners - capture the names of internal and external award winners </li></ul><ul><li>The well-connected – approach employees that are well connected in their profession / industry > </li></ul>
    • 37. Proactively target these employees <ul><li>Proactively approach </li></ul><ul><li>Employees with a successful referral history Approach employees that in the past, have made successful referrals </li></ul><ul><li>Employees formerly from “target firms” – </li></ul><ul><li>Push referral “needs” to employees that came from “target firms” (ActiveNet) </li></ul>
    • 38. Proactive follow-up meetings <ul><li>Consider a “follow up” meeting </li></ul><ul><li>After a great referral, it’s smart to schedule a follow up meeting with the person… </li></ul><ul><li>- To thank them (And their manager) </li></ul><ul><li>- To learn about the approach that they used </li></ul><ul><li>- To ask them for more top names (Amazon) </li></ul>
    • 39. <ul><li>Examples of 3 proactive referral tools </li></ul>
    • 40. 3 Effective “proactive” referral tools <ul><li>1. Reference referrals </li></ul><ul><li>Identify top performing hires from last year </li></ul><ul><li>Call the references that said accurate things </li></ul><ul><li>Thank them </li></ul><ul><li>Ask them “do you anyone else as good?” </li></ul><ul><li>Ask them to be a future reference source </li></ul>
    • 41. 3 Effective “proactive” tools <ul><li>2. Give me 5 – Proactively approach top people </li></ul><ul><li>Best manager you ever had </li></ul><ul><li>Best team leader </li></ul><ul><li>Best idea person or innovator </li></ul><ul><li>Best out of the box thinker </li></ul><ul><li>Best person that &quot;ran into&quot; burning buildings </li></ul><ul><li>Best problem solver </li></ul><ul><li>Best sales person that beats you </li></ul><ul><li>Best student in college that was so smart </li></ul><ul><li>Best mentor </li></ul><ul><li>Best technical skilled person </li></ul><ul><li>Best international talent </li></ul><ul><li>Best customer service person </li></ul><ul><li>Best replacement for &quot;you&quot; when you’re promoted </li></ul>
    • 42. 3 Effective “proactive” tools <ul><li>3. Blue light special for critical openings </li></ul><ul><li>When you have a sudden critical need </li></ul><ul><li>Put a “blue light” sandwich board in the lobby </li></ul><ul><li>Also, send a “I need your help” flash e-mail to people in the same job family </li></ul><ul><li>Ask the relevant manager to mention it as part of their regularly scheduled meeting agenda </li></ul>
    • 43. During a down economy… <ul><li>How you can reduce the volume of referrals that occur as a result of the high unemployment rate </li></ul><ul><li>(and low quality) </li></ul>
    • 44. Set these expectations… to reduce volume <ul><li>5 Expectations of referring employees (not rules) </li></ul><ul><li>We are looking for referrals that will make our firm significantly better </li></ul><ul><li>Participation is a privilege … so we expect you to put the firm and your team first and to act as a mature adult throughout the referral process </li></ul><ul><li>Normally… we expect no more than 3 a month (Because we want the very best) </li></ul><ul><li>We expect you to know their work from personal experience </li></ul><ul><li>Normally, we do not want family or social friends (Unless they are clearly superior) </li></ul>
    • 45. Require this information… to reduce volume <ul><li>Five bits of information that we need from you </li></ul><ul><li>Tell us the job # you are referring them for </li></ul><ul><li>Assess & then tell us about their skills/ knowledge and where they are needed </li></ul><ul><li>You must assess them and then report their cultural fit… so we do not dilute our culture </li></ul>
    • 46. Require this information… to reduce volume <ul><li>Five bits of information that we need from you </li></ul><ul><li>4. Did you seek this top individual out? (We expect you to seek individuals out) </li></ul><ul><li>We are not interested in “they ask you” referrals, when someone approaches you & specifically asks to be referred. </li></ul><ul><li>5. Now rate the referral on a A+, A, B+ or B scale </li></ul>
    • 47. <ul><li>Program elements to add to your referral program </li></ul>
    • 48. List of “things to add” to improve performance <ul><li>Be responsive </li></ul><ul><li>Develop a story inventory </li></ul><ul><li>Employment branding </li></ul><ul><li>Employee education on how to improve referrals </li></ul><ul><li>Expand eligibilit y </li></ul><ul><li>Getting manager’s attention </li></ul><ul><li>Referral cards </li></ul><ul><li>Diversity </li></ul><ul><li>College grad referrals </li></ul>
    • 49. Add responsiveness <ul><li>Respond to every referral (make it appear personalized) </li></ul><ul><li>Thank both within 24 hours (72 hr rule) </li></ul><ul><li>Tell them what they should expect next (timing and steps) </li></ul><ul><li>Make an interview decision within 5 days </li></ul><ul><li>Notify both when there is a rejection </li></ul>
    • 50. Add a story inventory <ul><li>Catalog powerful stories to aid EE referrals </li></ul><ul><li>Do a Google search </li></ul><ul><li>Check press clippings & press releases </li></ul><ul><li>Check best place & functional award applications </li></ul><ul><li>Check HR benefits brochures </li></ul><ul><li>Ask employees “why they stay” </li></ul><ul><li>Ask new hires “why they said yes” </li></ul><ul><li>Use “We do that lists” culled from best place articles </li></ul><ul><li>Ask “superknowers” </li></ul><ul><li>Create stories (B of A, MGM) </li></ul>
    • 51. Consider a story book <ul><li>Zappos publishes a book full of 300+ employee written stories about what it’s like to work there (Available on Amazon) </li></ul>
    • 52. Add educating your employees <ul><li>Educate them on how to find great referrals </li></ul><ul><li>How to find them on-line (forums & networks) </li></ul><ul><li>At conferences (Take a smart person to lunch) </li></ul><ul><li>Capture names during interviews </li></ul><ul><li>Offer training on how to convince them </li></ul><ul><li>What we have to offer side-by-side comparison </li></ul><ul><li>Teach them “the right day” to ask > </li></ul>
    • 53. Educate employees on the “right day” to ask <ul><li>Day of merger </li></ul><ul><li>Boss/ mentor/ best friend / CEO left </li></ul><ul><li>Lost a promotion </li></ul><ul><li>After their yearly bonus </li></ul><ul><li>After their performance appraisal </li></ul><ul><li>When their project is ending </li></ul><ul><li>Last kid graduates </li></ul>
    • 54. Add expanded eligibility <ul><li>Expand who can refer </li></ul><ul><li>Allow managers and HR to participate BUT provide an “opt out” or charity option </li></ul><ul><li>Former employees, alumni & retirees </li></ul><ul><li>Customers (Retail, Hollister) </li></ul><ul><li>Spouses (Addie and $2,000) </li></ul><ul><li>Consultants, suppliers, vendors </li></ul><ul><li>Strategic partners </li></ul><ul><li>Stock holders and the BOD </li></ul>
    • 55. Add getting a managers attention <ul><li>Reward managers for referrals and great talent management </li></ul><ul><li>Set targets - Sometimes just raising the goals and expectations… can cause an increase in referrals </li></ul><ul><li>Post charts or “thermometers” much like how &quot;United Way&quot; programs publicize their progress </li></ul>
    • 56. Add referral cards <ul><li>Use “attention getting” referral cards </li></ul><ul><li>Limit referral cards – only give cards to employees that can accurately spot talent. And even then, limit them to 10 cards a month </li></ul><ul><li>Include phrases that excite and make them want to take action </li></ul><ul><li>A memorable shape/ design – make it unlike a bus card… so they will know it’s something else </li></ul><ul><li>Give them a unique contact point – don’t direct them in a web site with all other applicants </li></ul>
    • 57. A WOW referral card – An illustration Apple loves innovators… and you WOW’ed me!
    • 58. As you unfold it… you see I don’t impress easily… but we might just have a black turtleneck that fits you! Call me tomorrow! 408.738.1922 Steve Would you like to be part of the team that invented the i pod and i phone
    • 59. And on the back you see Because there are so few really talented people in the world… I just wanted you to know Someday… you will work at Apple If you got one… do you think you would call? Would you tell anyone else?
    • 60. A referral card – An illustration That was Super Service!
    • 61. A referral card – An illustration You would be a At Starbucks Call 403 334 9832
    • 62. Add a focus on diversity referrals <ul><li>Tips for improving diversity referrals </li></ul><ul><li>Make diversity a primary goal </li></ul><ul><li>Use “affinity groups” to spread the word </li></ul><ul><li>Talk to current and former diverse employees to identify what your firm has to offer </li></ul><ul><li>Consider a higher reward for diversity referrals </li></ul><ul><li>Use business events where diversity can be “seen” </li></ul><ul><li>Put together a diversity recruiting advisory board </li></ul>
    • 63. Add referrals for college grads <ul><li>Endeca gives a flat screen TV as a referral bonus for college students referring a friend that gets hired </li></ul><ul><li>Intuit offered a $50 award to students who referred someone that was hired, they hired over half of those who were referred </li></ul>
    • 64. Add employment branding <ul><li>A great employer brand increases referral success </li></ul><ul><li>Awards for “best place to work” </li></ul><ul><li>Functional awards (Virtual close) </li></ul><ul><li>Being quoted </li></ul><ul><li>Writing and giving speeches </li></ul><ul><li>Benchmark studies </li></ul><ul><li>Academic case studies </li></ul><ul><li>WOW web page </li></ul><ul><li>Internal branding for consistency (Libby Sartain) </li></ul>
    • 65. Other things to add <ul><li>A global component </li></ul><ul><li>An internal redeployment component </li></ul><ul><li>Utilize your employees social network contacts </li></ul><ul><li>Identify “why” there are low referral rates with some managers and business units </li></ul><ul><li>PDA party / name dump </li></ul><ul><li>Boomerang referrals </li></ul>
    • 66. <ul><li>Program elements to avoid in your ERP </li></ul>
    • 67. Avoid these program “errors” <ul><li>Delaying the reward /bonus payment </li></ul><ul><li>Referral spamming by employees </li></ul><ul><li>Failing to continuously re-energize the ERP </li></ul><ul><li>No ATS marking of ERP apps for metrics </li></ul><ul><li>Equal rewards for all jobs </li></ul><ul><li>No feedback on weak or bad referrals </li></ul><ul><li>Individual recruiters can &quot;ignore&quot; referrals </li></ul><ul><li>Not tracking referral rates by manager </li></ul><ul><li>Giving big dollar bonuses </li></ul><ul><li>Too many rules </li></ul>
    • 68. Avoid these program “errors” <ul><li>Not weighting EE referrals based on the referrer’s track record </li></ul><ul><li>ERP applications are not given priority treatment in the recruiting process </li></ul><ul><li>ERP program manager turnover and poor documentation </li></ul>
    • 69. An illustration of how far referrals have come <ul><li>An animated viral video released on YouTube & Google Video is from Yellojobs.com </li></ul>
    • 70. <ul><li>Did I make you think? </li></ul><ul><li>Any questions? </li></ul><ul><li>www.drjohnsullivan.com </li></ul>

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