Focus Group OutputsEmployee Referral Schemes24/05/12
Why have a referral scheme?• Candidate Engagement• Cultural Fit• Speed of hire• Quicker assimilation for new starters• Employee engagement• Reduction of absence and attrition• Successful cross border recruiting• Cost Effective
Typical Referral Payment StructuresSchool Leaver - £75 Leather jacket with ‘I’m a talent magnet embossed on the inside’Clerical - £150 Entered into global draw – top Payment ranges from followingTech/professional - £300 10 referrers win £25,000 dependant on work levelPayment after 6 months payment £250 £500 £2,000 £1,000 – PA/Admin Admin £500 £4,000 £2,000 – PA upwards Management £1,000 Paid in full after one month £3,000 – Partner Senior Manager £1,500 50% paid after 3 50% paid after one month and months remaining 50% rest after probation after 6 months £1000 flat fee paid after successful completion of six month probation period£2,000 – graduate £500 flat fee paid after one month£3,500 – professional£5,000 - Management £3,000/ $5,000 payment regardless of level. Global scheme so flat payment in each country
Typical ERP Terms• Recruitment exempt• Senior Managers often exempt• Anyone involved in recruitment process exempt• HR typically exempt although some exceptions• Predominantly paid after probation period although increasingly after one month to reduce the time it to takes to reward the referrer• Mainly referrals were for specific roles although some companies allowed talent pool referrals especially for priority/ hard to fill/ volume job areas• Permanent employees only eligible• No-one currently offering alumni/ non employee referral payments although a couple of companies looking into it
Typical ERP Referral Ratios 25% 10% 25.85% 30% 14% 30% 40% 16% 25% Ideal ratio would be around 30% to ensure no knock on impact on diversity
Challenges• ATS complexity letting the process down• Quality of referrals• Role specific or generic referrals?• Not just refer a friend, more refer a contact!• Keeping the scheme front of employees minds• Diversity – no more than 50% referrals
ERP Top Tips!• Make the referral process as simple as possible i.e. No more than two clicks to refer!• Simple and clear policy• Link to EVP objectives• Run referral open evenings!• Relax rules for a period of time for priority/ hard to fill roles• Use your employee forum to understand how employees want to be rewarded• Senior Stakeholder support• Continuous marketing and communication strategy• Reward should be realistic, competitive and timely
Many thanks to the FIRMmembers who contributed to this focus group!