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Employee referral program ppt


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seminar on employee referral program,ERP,referral method of recruiting ,comprehensive seminar on ERP,

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Employee referral program ppt

  1. 1. INTRODUCTION:Employee referral is an internal recruitment method employedby organizations to identify potential candidates from their existing employees.An employee referral scheme encourages companys existing employees to selectand recruit the suitable candidates from their social networksEmployee referral programs are essentially used by organizations to hire greattalent while reducing acquisition time and costDEFINITION:Employee referral is defined as recruitment method in which the currentemployees are encouraged and rewarded for introducing suitable recruits fromamong the people they know.Employee referral scheme’s allows existing employees to screen, select andrefer the best candidates to the recruitment process
  2. 2. Referrals from existing employees have been shown to besome of the best employees through recent survey by SHRM. Astudy has shown that employees referred by existingemployees better and last longer on average. There are manybenefits from a well designed and implemented employeereferral program in addition to getting better employeesMorale boosterfor existingemployeesReferral bonusReduced costs perhireHigher retentionratesHigher return oninvestmentLess effort for recruitingdepartmentsBuilding a successful employee referral program1. Keep the process simple where to submit up-to-date compensation2. Solicit supervisor participationActive engagement and support3. Communicate the Benefits for EmployeesAwards
  3. 3. COMPANY PRACTICESAccentures 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 qualityi.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
  4. 4. Referral cards-electronic referral cardsGood administration-increase employee involvement &transparency.Employee scorecard-view through own individual online websEmployee referral excellence award winner 2009- AccentureERE is the worlds largest forum for recruiting professionals, and theirannual awards are considered to be one of the most prestigious in theindustry.Winners are chosen among a list consisting of the most progressiveand dynamic recruiters in the nation, representingsome of the most prominent organizations.
  5. 5. The ERE Recruiting Excellence Awards are chosen each year from an audience ofthe 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 programcategories from well-known organizations like Microsoft, IBM, Ernst & Young, Intuit,Accenture, Yahoo!, and from less well-known but equally innovative organizationslike DaVita, and Tata.Since inception, Accenture in year 2009 the program has grown the percentage ofhires attributed to employee referral from 14% to 33%. Employee awareness of thereferral program has jumped from 20% to 99%, an astounding feat .The quality ofreferrals also improved significantly this results in competing globally and win EREaward.
  6. 6. IBMSampark” which means “reaching out”, epitomizes the essence of the Employee ReferralProgram at IBM Daksh.Sampark is a very powerful tool in the hands of the employees to engineer their workenvironment and has played a very critical role in building the culture that IBM Daksh isknown for todayThe objective of IBM Daksh Employee Referral Bonus Policy is designed to supplementIBM GPSs normal recruiting activity and enhance the pool of diverse, qualifiedcandidates available for hire into IBM GPS.Sampark helps creating an environment where in not only to get the opportunity in orderto work with friends but also get reward for doing so. It is a key resourcing channel forthe organization.
  7. 7. 3. ScopeIn this company referral program is aimed at inviting referrals only forpermanent / regular - full time hires, fixed term hires and interns positionsERP advice will be made to payroll for the eligible referrers after the referredcandidate has been employed at IBM for a minimum of 90 Days. Payouts will bemade as a part of the payroll disbursement and will be subject to all applicabletaxesThe program has a two layer execution strategy.The first layer is a central team in TAU whose core focus is to drive the Samparkinitiative within the organization. The second layer is that of SamparkAmbassadors who work in specific projects. They spearhead the program in theirrespective projects as an additional responsibility.SamparkProgramLayerTAUlayerSamparkAmbassadors
  8. 8. Sampark Ambassadors Incentiveslabs:Employees are identified as “SamparkAmbassadors” to act as brand ambassadorsto interface between their competencies/locations and the recruitment team. Theseemployees are entitled to payouts andincentive slabs other than the referralbonus amount details of current slabsCross competency referring:Referral payouts schemes will be governed as per the approved payoutsapplicable to the Respective applying competency /GoesE.g. For an employee referring candidates for a position in the Kolkatalocation, will be paid as per the approved referral payout scheme forKolkata.
  9. 9. Round One networkRound One is a first of its kind internet platform that connects jobseekers withcompany employees so they can interact and earn job referrals, it aim to create ameritocratic and transparent system which levels the playing field by removing theneed for contacts.Round One’s unique model enables jobseekers to register for unofficial phoneinterviews 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 2,000companies, and 400,000 job seekers registered with its service. They are mostlyfrom the IT, banking, KPO and consultancy sectors
  10. 10. BENEFITSReducedRecruitmentWorkQualityCostLonger TenureDiversity ofCandidatesOffer incentivesand rewards toemployees
  11. 11. DisadvantageLow-QualityReferralsUnderrepresentation ofProtectedGroupsEmployeeRetention andProductivityOrganizationalBehaviorProblems
  12. 12. CONCLUSIONIt’s safe to say that every company/business has its own EmployeeReferral Program, whether formal or informal, that they promote to varyingdegrees at various times. Larger companies with hundreds of openpositions, in some cases, have a full-time employee dedicated to runningand optimizing their ERP. Smaller companies that hire a few people a yearoften rely on their employees to refer candidates for those positionA good referral program will have many benefits, both in cost and thetime savings
  13. 13. LEARNING OBJECTIVE:This topic has made me to learn about employee referralprogram and how it help the company in recruitmentprocessEmployee referrals provide a win situation to all theparties involved – Employer , Employee and the CandidateMore and more firms are resorting to employee referralsand are reaping the benefits.BIBILOGRAPHY : outlook 2013