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Four action steps to kickstart your Employee Referral Program
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Four action steps to kickstart your Employee Referral Program

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Companies track revenues, costs, profit and a number of key performance metrics. With more companies embracing the business value of employee engagement, the need to measure and monitor engagement as ...

Companies track revenues, costs, profit and a number of key performance metrics. With more companies embracing the business value of employee engagement, the need to measure and monitor engagement as a key performance metric becomes critical for measuring success and improving results.

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    Four action steps to kickstart your Employee Referral Program Four action steps to kickstart your Employee Referral Program Presentation Transcript

    • RAISING YOUR EMPLOYEE REFERRAL PROGRAM RESULTS TO 50% OF ALL HIRES “50% is the new ERP target” © Dr John Sullivan 1 www.drjohnsullivan.com
    • 2 4 Action Steps to Kick Start an Employee Referral Program
    • Strategic action #1 Prioritize and focus your ERP effort
    • Strategic action #1 Focus ERP efforts on high priority jobs including: Mission critical jobs and business units Revenue generating jobs Jobs with a high previous referral success rate Hard to fill jobs “Sudden” key vacancies Tip – begin with a shortlist of targeted jobs and then add positions
    • Prioritize the employee with the closest relationship Accolo uses a referral community  For every open job, it selects a few employees based on the likelihood that they will know the right person  As a result, Accolo has averaged 8 referrals for every job (#1)
    • Be careful Homer will refer people also
    • Prioritize your employees Focus on referrals from top performing employees Why? Because referral hires from top performers… produce nearly 3 times more profit… compared… to a referral hire from a below average performer Seek out and prioritize referrals from top performers But also… warn, restrict or ban employees that routinely make weak referrals Source: “The Value of Hiring through Referrals” (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
    • Strategic action #2 Do not overemphasize monetary rewards
    • Strategic action #2 Use “help the team" motivation (not $) The most effective referral motivation approach emphasizes the opportunity to work alongside great people… because the team wins more frequently… when it has the best players
    • Strategic action #2 You can build a “help the team” mentality… by emphasizing these benefits to employees Higher quality hires will improve business results and thus raise employee stock value and bonuses It’s part of the responsibility of being a team player You will be recognized for “helping the team” You will learn more from higher-quality new hires You won’t have to work alongside slackers Note: A feedback loop is required to tell employees whether they made a “junk” or a “star” referral Also show them the correlation between improved business results and a higher % of ERP hires
    • 2 examples… referrals don’t require $ bonuses  Reached and maintained a +70% referral rate with no $ rewards  Edward Jones reached 55% with no bonus
    • Strategic action #3 Be proactive in seeking out referrals
    • Strategic action #3 Why you need to be proactive? “Great people know great people”, however most employees are extremely busy… so to maximize your referrals… you will need to proactively approach your top referring employees Here are 3 proactive ERP tools to consider
    • “Proactive” referral tools A) Give me 5 – Proactively approach top employees Ask them to identify and then contact the…  Best manager they ever had  Best team leader  Best idea person or innovator  Best person that "runs into" burning buildings  Best problem solver  Best sales person that beats you  Best student in college that was so smart  Best mentor  Best technical skilled person  Best international talent  Best customer service person
    • “Proactive” tools B) Reach out to job references for referrals  Identify top performing hires from last year  Call their references that said accurate things  Thank them  Ask them “Do you know anyone else as good?”  Ask them to be a future reference source
    • “Proactive” tools C) “Most wanted list” for relationship building  Executives identify… a list of gamechangers and potential “magnet hires” at the beginning of the year  Employees are asked to seek out these highly desirable individuals and to build a relationship with them over social media (Relationship recruiting)  When they eventually agreed to consider becoming a referral… speed hiring is required
    • Strategic action #4 Broaden the program and expand it’s eligibility
    • Strategic action #4 Broaden the program Add on-boarding referrals – proactively ask new hires for referrals during on-boarding (Eli Lily) Add college referrals – the college population is well connected through social networks, so add a referral sub-program for college hires and interns (Endeca, Intuit) Add referrals for executive positions – advanced ERP’s also cover openings for executive positions Focus on boomerangs – encourage your employees to target your best corporate alumni (also allow them to make referrals)
    • Strategic action #4 Broaden the program  Add internal movement referrals - have a referral program that is designed to encourage internal movement. The best practice firm Booz Allen has a “Career mobility” team (Also MS, Cisco)
    • Expand program eligibility Expand eligibility Executives are encouraged to refer - a “white glove treatment” recruiter can be assigned to encourage executives to make referrals (Deloitte) Managers and HR are made eligible – managers and those in HR are also well connected, so they should be eligible to make referrals (Accenture) Note: you can help minimize conflicts of interest by offering the option of contributing any ERP reward to charity.
    • Expand eligibility Expand eligibility to non-employees Open up referrals to non-employees including Family Contingent workers Consultants and vendors Customers Board members Corporate alumni (Internosis, Clearlink, CACI, Verinon)