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Beyond Employees:
Employee Referral Programs Redefined
Summary Report & Survey Results
May 2015
© 2015 SmashFly Technologi...
Table of Contents
A look behind the data in this SmashFly report
© 2015 SmashFly Technologies. All rights reserved.
• Meth...
Survey methodology
A look behind the data in this SmashFly report
© 2015 SmashFly Technologies. All rights reserved.
• In ...
Survey results (1 of 3)
What the SmashFly Employee Referrals survey reveals
© 2015 SmashFly Technologies. All rights reser...
Survey results (2 of 3)
What the SmashFly Employee Referrals survey reveals
© 2015 SmashFly Technologies. All rights reser...
Survey results (3 of 3)
What the SmashFly Employee Referrals survey reveals
© 2015 SmashFly Technologies. All rights reser...
Do you have an employee referral program
77% have a formal referral program
Yes
77%
No
19%
Don't know
4%
© 2015 SmashFly T...
If no, why not
44% don’t have budget or a way to easily manage referrals
© 2015 SmashFly Technologies. All rights reserved...
If yes, percentage of new hires from referrals
32% of new hires came from referrals in the past 12 months (average)
© 2015...
How do you administer your referral program
53% manage referrals through their ATS
© 2015 SmashFly Technologies. All right...
From whom do you solicit referrals
57% limit their referral program to employees only
© 2015 SmashFly Technologies. All ri...
Rate the quality of referrals vs. other sources
Quality of referrals ranks high among sources of hire
© 2015 SmashFly Tech...
How do you track that a hire is a referral
51% track referrals using their ATS
© 2015 SmashFly Technologies. All rights re...
How confident are you in how you track source
45% have somewhat to no faith in their method to track referrals
© 2015 Smas...
How do you reward people who refer
86% provide a bonus payment for successful referrals
© 2015 SmashFly Technologies. All ...
How do you track referral rewards
35% rely on spreadsheets to track reward payouts
© 2015 SmashFly Technologies. All right...
How well do your employees…
Many referral programs are not well understood or easy to use
© 2015 SmashFly Technologies. Al...
Your role and title
69% in talent acquisition, 74% manager level or above
© 2015 SmashFly Technologies. All rights reserve...
Your organization size and HQ location
86% from North America, range of company sizes
© 2015 SmashFly Technologies. All ri...
Your number of hires and turnover rate
50% fill <500, 25% fill 501-2,500 & 21% fill >2,501 jobs,
23% average annual turnov...
Your cost per hire by number of hires
Average approx. cost per hire of all participants is $3,900
© 2015 SmashFly Technolo...
SmashFly Recommendations (1 of 2)
Ways organizations can maximize referrals
© 2015 SmashFly Technologies. All rights reser...
SmashFly Recommendations (2 of 2)
Ways organizations can maximize referrals
© 2015 SmashFly Technologies. All rights reser...
About SmashFlyTechnologies
Forefront of modern talent acquisition strategy
© 2015 SmashFly Technologies. All rights reserv...
#smashflyreferrals
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SmashFly Employee Referral Programs Survey Report 2015

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Survey of talent acquisition organizations reveals:
* How to get 28% more hires from referrals by doing this one thing
* Percentage of organizations with formal ERPs and what results they get
* Ways organizations manage and track referrals today, and what challenges they face
* Most popular incentives used to reward successful referrals
* What you can do to generate more hires from referrals without sacrificing quality of candidates
The survey was conducted in April 2015 by SmashFly Technologies, the leading Recruitment Marketing Platform provider: http://smashfly.com

Published in: Recruiting & HR
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SmashFly Employee Referral Programs Survey Report 2015

  1. 1. Beyond Employees: Employee Referral Programs Redefined Summary Report & Survey Results May 2015 © 2015 SmashFly Technologies. All rights reserved. #smashflyreferrals
  2. 2. Table of Contents A look behind the data in this SmashFly report © 2015 SmashFly Technologies. All rights reserved. • Methodology • Summary results • % that have a referral program • If no program, why not • If yes, % new hires from referrals • How do you administer referral program • From whom do you solicit referrals • Quality of referrals vs. other sources • How do you track referral source • How confident in your tracking method • How do you reward successful referrals • How do you track referral rewards • Employee understanding of program • Your role and title • Your organization size and HQ location • # hires and annual turnover rate • Cost per hire by # of hires • SmashFly recommendations 2
  3. 3. Survey methodology A look behind the data in this SmashFly report © 2015 SmashFly Technologies. All rights reserved. • In April 2015, SmashFly conducted an online survey about Employee Referral Programs • 114 talent acquisition/human resources professionals participated, 74% manager level or above • 86% from companies headquartered in North America, across a range of company sizes • Responses were anonymous 3
  4. 4. Survey results (1 of 3) What the SmashFly Employee Referrals survey reveals © 2015 SmashFly Technologies. All rights reserved. • Employee Referral Programs are widely used because they produce a high volume of qualified candidates • 77% of organizations currently have a formal referral program • 32% of new hires come from referrals on average, and rate highest in quality among sources of hire • 57% limit their referral program to employees only • 43% extend their program beyond employees to include alumni, contractors, customers, vendors and/or partners 4
  5. 5. Survey results (2 of 3) What the SmashFly Employee Referrals survey reveals © 2015 SmashFly Technologies. All rights reserved. • Analysis shows those that reach beyond employees get 28% more hires from referrals and 8% better quality candidates • This data illustrates that extending who can refer candidates into the organization can increase the volume of leads without sacrificing quality • 35% are actively seeking ways to start a formal program • Yet 44% say lack of budget and no easy way to manage referrals are holding them back 5
  6. 6. Survey results (3 of 3) What the SmashFly Employee Referrals survey reveals © 2015 SmashFly Technologies. All rights reserved. • 53% use their ATS to manage the referral program • 51% use their ATS to track referrals as the source of hire • However, 45% have only somewhat to no confidence in their method of tracking • 86% provide a bonus payment for successful referrals • But 35% still use a spreadsheet to track rewards • Challenges in managing and tracking referrals must be overcome for more organizations to realize the benefits of this important recruiting source 6
  7. 7. Do you have an employee referral program 77% have a formal referral program Yes 77% No 19% Don't know 4% © 2015 SmashFly Technologies. All rights reserved. 7
  8. 8. If no, why not 44% don’t have budget or a way to easily manage referrals © 2015 SmashFly Technologies. All rights reserved. We're in the process of putting together a formal program soon 35% Our ad-hoc program is good enough - we don't need the formality 9% A formal program would take too much to manage 6% We don't have the budget to give rewards or gifts 20% We don't have the budget for an employee referral system / tool 18% We don't find value in referrals 3% I don't know 9% 8
  9. 9. If yes, percentage of new hires from referrals 32% of new hires came from referrals in the past 12 months (average) © 2015 SmashFly Technologies. All rights reserved. 28% 36% Among participants that get referrals from employees only Among participants that reach beyond employees to get referrals 28%More referrals 9
  10. 10. How do you administer your referral program 53% manage referrals through their ATS © 2015 SmashFly Technologies. All rights reserved. We use our ATS 53% We have a stand- alone referral tool 15% We use a spreadsheet 24% I don’t know 8% 10
  11. 11. From whom do you solicit referrals 57% limit their referral program to employees only © 2015 SmashFly Technologies. All rights reserved. 97.7% 27.3% 26.1% 17.1% 14.8% 11.4% 3.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 43% Extend their program beyond employees to include alumni, contractors, customers, vendors and/or partners 11
  12. 12. Rate the quality of referrals vs. other sources Quality of referrals ranks high among sources of hire © 2015 SmashFly Technologies. All rights reserved. 2.18 2.61 2.7 2.81 2.9 3.02 3.11 3.13 3.49 3.93 4.03 1 2 3 4 5 Advertising (print/radio/etc.) Job Fairs Job Boards Agency / Contract Recruiters Search Engines Social Media Career Site Temp to Hire Direct Source Internal Candidates Referrals Awful GreatSo-So GoodFair 8% Among participants that reach beyond employees to solicit referralsHigher quality 12 Average among all participants
  13. 13. How do you track that a hire is a referral 51% track referrals using their ATS © 2015 SmashFly Technologies. All rights reserved. My ATS tracks that the candidate came from a formal referral process 51% My employee referral tool tracks that the candidate came from a formal referral process 10% Candidate selects from drop-down menu during apply process 17% Recruiter asks during screening process 13% Candidate provides information after being hired 5% I don’t know 3% Other 1% 13
  14. 14. How confident are you in how you track source 45% have somewhat to no faith in their method to track referrals © 2015 SmashFly Technologies. All rights reserved. Absolutely 23% Pretty Confident 32% Somewhat 20% A Little 17% No Faith 8% 14
  15. 15. How do you reward people who refer 86% provide a bonus payment for successful referrals © 2015 SmashFly Technologies. All rights reserved. We don’t provide rewards 1% We provide a referral bonus payment 86% We provide them with a gift 5% We recognize them but no bonus or gift 5% It varies depending on the individual submitting the referral 2%I don't know 1% 15
  16. 16. How do you track referral rewards 35% rely on spreadsheets to track reward payouts © 2015 SmashFly Technologies. All rights reserved. We track with our ATS 24% We track with our employee referral tool 11% We track with a different HR system 17% We track with spreadsheets 35% I don't know 10% Other 3% 16
  17. 17. How well do your employees… Many referral programs are not well understood or easy to use © 2015 SmashFly Technologies. All rights reserved. Completely 15% Pretty good 33%Somewhat 33% Barely 15% Not at all 4% Completely 16% Pretty good 25% Somewhat 36% Barely 15% Not at all 8% Understand your referral program? Find your program easy to use? 17
  18. 18. Your role and title 69% in talent acquisition, 74% manager level or above © 2015 SmashFly Technologies. All rights reserved. HR Generalist 5% Recruiting / Talent Acquisition 69% HR Systems / Technology 13% Learning & Development 5% Employee Relations 2%Other 6% C-level / VP 7% Director 25% Manager 42% Team member 22% Other 4% Role? Title? 18
  19. 19. Your organization size and HQ location 86% from North America, range of company sizes © 2015 SmashFly Technologies. All rights reserved. Fewer than 100 Employees 19% 100 - 1,000 Employees 15% 1,001 - 5,000 Employees 22% 5,001 - 10,000 Employees 11% 10,001 - 50,000 Employees 17% Over 50,000 Employees 16% United States 81% Canada 5% Australia 4% Europe 6% Other 4% Size? HQ location? 19
  20. 20. Your number of hires and turnover rate 50% fill <500, 25% fill 501-2,500 & 21% fill >2,501 jobs, 23% average annual turnover rate © 2015 SmashFly Technologies. All rights reserved. Fewer than 100 jobs 27% 101 - 250 jobs 11% 251 - 500 jobs 12% 501 - 1,000 jobs 13% 1,000 - 2,500 jobs 12% 2,501 - 5,000 jobs 7% 5,001 - 10,000 jobs 6% Over 10,000 jobs 8% Don't know 4% Annual turnover rate? 23% # of hires annually globally? 20
  21. 21. Your cost per hire by number of hires Average approx. cost per hire of all participants is $3,900 © 2015 SmashFly Technologies. All rights reserved. Number of hires annually globally Average approximate cost per hire <500 jobs $3,500 501 – 2,500 jobs $6,000 >2,501 jobs $4,050 21
  22. 22. SmashFly Recommendations (1 of 2) Ways organizations can maximize referrals © 2015 SmashFly Technologies. All rights reserved.  Leverage the power of your organization’s full network by inviting alumni, contractors, customers, vendors, partners and fans to refer candidates  Incentivize more referrals by allowing multiple people to sponsor the same candidate and to make general referrals not just for a specific job  Ensure quality of referrals remains high by asking sponsors to provide a recommendation, not just a name  Remove the red tape by keeping referrals open-ended and not limited by the date the referral is made or when the job is posted 22
  23. 23. SmashFly Recommendations (2 of 2) Ways organizations can maximize referrals © 2015 SmashFly Technologies. All rights reserved.  Stay in compliance with corporate policies and government regulations by validating the sponsor-candidate relationship and rules acceptance  Make it easy for sponsors to find and refer candidates using their social networks and email contacts  Communicate transparently with sponsors on the status of their referrals and rewards through an online sponsor portal  Keep sponsors engaged by automating timely and relevant email that puts you top of mind 23
  24. 24. About SmashFlyTechnologies Forefront of modern talent acquisition strategy © 2015 SmashFly Technologies. All rights reserved. SmashFly’s award-winning Total Recruitment Marketing Platform enables talent acquisition teams to attract, engage and nurture candidates and convert them into qualified applicants using a centralized management system that automates and measures recruiting strategies and programs. Customers use SmashFly to unite their previously disconnected recruiting tools into an integrated software platform for Job Distribution, Candidate Relationship Management (CRM), Talent Networks, mobile-responsive and SEO-optimized Career Sites, Employee Referrals, Social Recruiting and Recruiting Analytics. Used to target pre-applicants in the front-end of the talent acquisition process, SmashFly integrates with any applicant tracking system (ATS) to provide unparalleled, real-time analytics on the sources that produce the best hires for the organization. Learn more at smashfly.com. 24
  25. 25. #smashflyreferrals

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