Employee referral programs allow existing employees to refer potential candidates for open positions. This reduces recruitment costs and time while improving hire quality, as referred candidates often perform better and stay longer. Common benefits include higher retention rates and return on investment. Successful programs clearly communicate the referral process and incentives to employees and obtain supervisor participation. Companies like Accenture and IBM have highly effective referral programs that provide substantial cost savings and quality hires. Referral programs create a win-win for employers, employees and candidates.

2. INTRODUCTION:
Employee referral is an internal recruitment method employed
by organizations to identify potential candidates from their existing employees.
An employee referral scheme encourages company's existing employees to select
and recruit the suitable candidates from their social networks
Employee referral programs are essentially used by organizations to hire great
talent while reducing acquisition time and cost
DEFINITION:
Employee referral is defined as recruitment method in which the current
employees are encouraged and rewarded for introducing suitable recruits from
among the people they know.
Employee referral scheme’s allows existing employees to screen, select and
refer the best candidates to the recruitment process

3. Referrals from existing employees have been shown to be
some of the best employees through recent survey by SHRM. A
study has shown that employees referred by existing
employees better and last longer on average. There are many
benefits from a well designed and implemented employee
referral program in addition to getting better employees
Morale booster
for existing
employees
Referral bonusReduced costs per
hire
Higher retention
rates
Higher return on
investment
Less effort for recruiting
departments
Building a successful employee referral program
1. Keep the process simple
 where to submit
 up-to-date
 compensation
2. Solicit supervisor participation
Active engagement and support
3. Communicate the Benefits for Employees
Awards

4. COMPANY PRACTICES
Accenture's best practice in referral recruitment
Accenture won ERE award for its most innovative employee referral program
They adapted ERP to become the most effective low-cost/high-quality source.
Number one source of candidates, both quantity and quality
i.e., percentage of hires in the year 2008-2009 -14 % to 33%
Cost saving-EUR 600,000 in 3months
Job satisfaction and commitment- from both the old and new
Awareness-jumped from 20% to 99%
Smart reward scheme instead of higher rewards -world trips,
EUR 100 inviting referee for an interview

5. Referral cards-electronic referral cards
Good administration-increase employee involvement &transparency.
Employee scorecard-view through own individual online webs
Employee referral excellence award winner 2009- Accenture
ERE is the world's largest forum for recruiting professionals, and their
annual awards are considered to be one of the most prestigious in the
industry.
Winners are chosen among a list consisting of the most progressive
and dynamic recruiters in the nation, representing
some of the most prominent organizations.

6. The ERE Recruiting Excellence Awards are chosen each year from an audience of
the most progressive, interesting, and dynamic recruiting professionals.
It has a rich history and its winners have become widely respected in the field
ERE Media holds a yearly global competition aimed at identifying the very best
“next practices” in recruiting.
Every Each year, ERE receives hundreds of applications in eight recruiting program
categories from well-known organizations like Microsoft, IBM, Ernst & Young, Intuit,
Accenture, Yahoo!, and from less well-known but equally innovative organizations
like DaVita, and Tata.
Since inception, Accenture in year 2009 the program has grown the percentage of
hires attributed to employee referral from 14% to 33%. Employee awareness of the
referral program has jumped from 20% to 99%, an astounding feat .The quality of
referrals also improved significantly this results in competing globally and win ERE
award.

7. IBM
Sampark” which means “reaching out”, epitomizes the essence of the Employee Referral
Program at IBM Daksh.
Sampark is a very powerful tool in the hands of the employees to engineer their work
environment and has played a very critical role in building the culture that IBM Daksh is
known for today
The objective of IBM Daksh Employee Referral Bonus Policy is designed to supplement
IBM GPS's normal recruiting activity and enhance the pool of diverse, qualified
candidates available for hire into IBM GPS.
Sampark helps creating an environment where in not only to get the opportunity in order
to work with friends but also get reward for doing so. It is a key resourcing channel for
the organization
.

8. 3. Scope
In this company referral program is aimed at inviting referrals only for
permanent / regular - full time hires, fixed term hires and interns positions
ERP advice will be made to payroll for the eligible referrers after the referred
candidate has been employed at IBM for a minimum of 90 Days. Payouts will be
made as a part of the payroll disbursement and will be subject to all applicable
taxes
The program has a two layer execution strategy.
The first layer is a central team in TAU whose core focus is to drive the Sampark
initiative within the organization. The second layer is that of Sampark
Ambassadors who work in specific projects. They spearhead the program in their
respective projects as an additional responsibility.
Sampark
Program
Layer
TAU
layer
Sampark
Ambassa
dors

9. Sampark Ambassadors Incentive
slabs:
Employees are identified as “Sampark
Ambassadors” to act as brand ambassadors
to interface between their competencies/
locations and the recruitment team. These
employees are entitled to payouts and
incentive slabs other than the referral
bonus amount details of current slabs
Cross competency referring:
Referral payouts schemes will be governed as per the approved payouts
applicable to the Respective applying competency /Goes
E.g. For an employee referring candidates for a position in the Kolkata
location, will be paid as per the approved referral payout scheme for
Kolkata.

10. Round One network
Round One is a first of its kind internet platform that connects jobseekers with
company employees so they can interact and earn job referrals, it aim to create a
meritocratic and transparent system which levels the playing field by removing the
need for 'contacts'.
Round One’s unique model enables jobseekers to register for unofficial phone
interviews with employees in a company, and earn a job referral from them.
How the round one works?
Round One’s primary method of marketing so far has been social media
The revenues of round one have been growing at 25% every month
According to Nishant Mathur, Round One has over 12,000 referrers from 2,000
companies, and 400,000 job seekers registered with its service. They are mostly
from the IT, banking, KPO and consultancy sectors

11. BENEFITS
Reduced
Recruitment
Work
Quality
CostLonger Tenure
Diversity of
Candidates
Offer incentives
and rewards to
employees

12. Disadvantage
Low-Quality
Referrals
Underrepresent
ation of
Protected
Groups
Employee
Retention and
Productivity
Organizational
Behavior
Problems

13. CONCLUSION
It’s safe to say that every company/business has its own Employee
Referral Program, whether formal or informal, that they promote to varying
degrees at various times. Larger companies with hundreds of open
positions, in some cases, have a full-time employee dedicated to running
and optimizing their ERP. Smaller companies that hire a few people a year
often rely on their employees to refer candidates for those position
A good referral program will have many benefits, both in cost and the
time savings

14. LEARNING OBJECTIVE:
This topic has made me to learn about employee referral
program and how it help the company in recruitment
process
Employee referrals provide a win situation to all the
parties involved – Employer , Employee and the Candidate
More and more firms are resorting to employee referrals
and are reaping the benefits.
BIBILOGRAPHY :
https://india.jobs.accenture.com/
http://www.referralrecruitment.com/home/accenture
http://www.ere.net/
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