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Innovations in Employee Referral 
Programs 
Kara Yarnot, Founder & President 
Recruiting Trends Conference 2014
Imagine……… 
2 
2014 
MERITAGE TALENT SOLUTIONS’ 
EMPLOYEE REFERRAL 
TRENDS REPORT
3 
PROGRAM STRUCTURE 
BENCHMARKING
Who Has Formal Employee Referral 
Programs? 
71% 
of companies report 
having a formal 
employee referral 
program 
4 
86%...
Referrals Continue to be a Primary Source 
of Hire for Employers with Referral 
Programs 
5 
% of External Hires that are ...
6 
GOALS OF REFERRAL PROGRAMS 
Increasing the Quality of the Candidate pool 
is the top goal for companies. 
100% 
90% 
80...
REFERRALPROGRAM MANAGEMENT 
Referral Program Structure 
Centralized 
program 
management is 
the most common 
management 
...
8 
Tools Used to Manage Program 
Currently have 
program 
Planning to launch 
program 
64% 
55% 
50% 
18% 
14% 
27% 
3% 
0...
9 
Referral Program Incentives – Cash is King 
of companies offer 
or plan to offer cash 
incentives for 
referral hires. ...
10 
Thinking Beyond Cash 
25% 
of companies offer or 
plan to offer non-cash 
incentives for referral 
hires. 
54% Prize 
...
11 Referral Program Enhancements 
Social 
Referrals 
Mobile 
Accessibility 
Improved 
Marketing 
Non- 
Employees 
Improved...
12 
PRIMARY REFERRAL PROGRAM 
TRENDS IDENTIFIED
13 
TREND # 1 
Social Referrals - Driven by the 
implementation of 3rd party 
Referral Technology
Types of Social Referral Tools 
Broadcast 
14 
Broadcast & Discovery
15 
All of the 3rd party referral 
tools are based on social 
referral functionality. 
3rd Party Referral Tools 
Companies...
SATISFACTION WITH CURRENT REFERRAL TOOLS 
How Satisfied Are You With Your Current 
Referral Tools? 
16 
of respondents who...
17 
TREND # 2 
Moving Beyond the “Employee” 
Referral Program
18 
Individuals Beyond Employees Included 
in Program 
Customer 
48% 
100% 
Social Media 
Connections 
48% 
60% 
Vendor 
O...
THANK YOU 
Kara Yarnot 
President, Meritage Talent Solutions 
@klyarnot 
LinkedIn.com/in/karayarnot 
19
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Innovations in Employee Referral Programs

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An in-depth review of Meritage Talent Solutions's 2014 Employee Referral Trends Report, include a review of benchmarks and the 2 newest trends in referral programs.

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Innovations in Employee Referral Programs

  1. 1. Innovations in Employee Referral Programs Kara Yarnot, Founder & President Recruiting Trends Conference 2014
  2. 2. Imagine……… 2 2014 MERITAGE TALENT SOLUTIONS’ EMPLOYEE REFERRAL TRENDS REPORT
  3. 3. 3 PROGRAM STRUCTURE BENCHMARKING
  4. 4. Who Has Formal Employee Referral Programs? 71% of companies report having a formal employee referral program 4 86% 36% plan to launch a program in the next 18 months.
  5. 5. Referrals Continue to be a Primary Source of Hire for Employers with Referral Programs 5 % of External Hires that are Referrals 27% 0 - 25% 26 – 50% 51 – 75% 76 – 100% Don’t know 47% 38% 4% 4% 7% of companies with referral programs report that more than half of their external hires come from their referral program. 8% of companies report meeting or exceeding their referral program hiring goals. 25% of companies don’t actually have 25% hiring goals for their program
  6. 6. 6 GOALS OF REFERRAL PROGRAMS Increasing the Quality of the Candidate pool is the top goal for companies. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Increase Quality Increase Quantity Decrease Time to Hire 49% Increase Retention Increase Diversity Currently have program Planning to launch program Other Don’t Know 93% 67% 61% 36% 58% 27% 27% 32% 18% 9% 2% 2%
  7. 7. REFERRALPROGRAM MANAGEMENT Referral Program Structure Centralized program management is the most common management structure. 76% 64% Centralized 80% 70% 60% 50% 40% 30% 20% 10% 0% 9% 0% 7 Currently have program Planning to launch program 16% 9% 27% Decentralized Hybrid Not yet decided
  8. 8. 8 Tools Used to Manage Program Currently have program Planning to launch program 64% 55% 50% 18% 14% 27% 3% 0% 18% Spreadsheets ATS 3rd Party Other Not Decided
  9. 9. 9 Referral Program Incentives – Cash is King of companies offer or plan to offer cash incentives for referral hires. 59% Cash awards to employees for referral hires are the most common incentives employed. Average Cash Incentive Paid for Referral Hires 26% 73% Less than $1000 69% Currently have program Planning to launch program 2% 0% 18% $ $ 9% 4% Between $1000 and $4999 $5000 or greater Don’t know 18%
  10. 10. 10 Thinking Beyond Cash 25% of companies offer or plan to offer non-cash incentives for referral hires. 54% Prize Drawings 35% Others 27% Company Logo Items 15% Vacation Days
  11. 11. 11 Referral Program Enhancements Social Referrals Mobile Accessibility Improved Marketing Non- Employees Improved metrics Complete Overhaul
  12. 12. 12 PRIMARY REFERRAL PROGRAM TRENDS IDENTIFIED
  13. 13. 13 TREND # 1 Social Referrals - Driven by the implementation of 3rd party Referral Technology
  14. 14. Types of Social Referral Tools Broadcast 14 Broadcast & Discovery
  15. 15. 15 All of the 3rd party referral tools are based on social referral functionality. 3rd Party Referral Tools Companies planning to launch referral programs are more likely to use 3rd Party Referral Tools. 14% Currently have program 2277%% Planning to launch program
  16. 16. SATISFACTION WITH CURRENT REFERRAL TOOLS How Satisfied Are You With Your Current Referral Tools? 16 of respondents who are Very Satisfied use a 3rd party solution. Very Satisfied Partially Satisfied Neither Satisfied or Dissatisfied Partially Dissatisfied Very Dissatisfied of respondents who are Partially Satisfied use ATS Solution, 63% 83%
  17. 17. 17 TREND # 2 Moving Beyond the “Employee” Referral Program
  18. 18. 18 Individuals Beyond Employees Included in Program Customer 48% 100% Social Media Connections 48% 60% Vendor Other 26% 20% Alumni 70% 80% Planning to launch program Currently have program 35% 40% of respondents with programs already include non-employees in their programs. 22 % 17 % An additional 17% plan to expand their programs to include non-employees. of respondents planning to launch programs with include non-employees in their programs. 45 %
  19. 19. THANK YOU Kara Yarnot President, Meritage Talent Solutions @klyarnot LinkedIn.com/in/karayarnot 19

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