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CareerXroads 2016 Employee Referrals Review

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CareerXroads takes a look at survey and benchmark data provided and reviewed by over 200 companies. This overview allows for some interesting conversation with regards to how referral programs are being run and how effective they are within the companies that support them.

Companies that participated in this study were invited to take part in the subsequent webinar where the results were shared and discussed among both CareerXroads members and non-members collectively.

Organizations interested in learning more about CareerXroads or joining the Colloquium should visit http://www.careerxroads.com for more details.

Published in: Business

CareerXroads 2016 Employee Referrals Review

  1. 1. Referrals 2016 CareerXroads referral review Gerry Crispin & Chris Hoyt CareerXroads | www.careerxroads.com
  2. 2. 2016 Colloquium Members chris.hoyt@careerxroads.com | gerry.crispin@careerxroads.com AARP AbbVie ADP Amazon AstraZeneca Avery Dennison BASF Buffalo Wild Wings Campbell’s CapitalOne Cargill CDK Global Cigna Citrix Comcast Corning Davita Dell Deluxe Disney Edward Jones Eli Lilly Enterprise Holdings Ernst & Young FedEx Office Fidelity Fifth Third Bank GE Genentech Highmark Health IFF Informatica Ingersoll Rand Intuit Johnson & Johnson JP Morgan Chase Keysight Kimberly-Clark Lockheed Martin Macy’s Manulife Marriott International Merck Nationwide Nike Northwestern Mutual Ortho Clinical Diagnostics PepsiCo Pitney Bows PNLL QVC RSM Schneider Electric Scotia Bank Shaw Industries Shell Southern California Edison Sprouts State Farm Stryker Target Thermo Fisher Scientific Time Warner Time Warner Cable Two Sigma Verizon Wireless Waste Management Wegmans Wells Fargo Whirlpool Yum! Brands
  3. 3. Back Story N=130 + 74 =204
  4. 4. Industry Business Goods / Services - 12.31% Construction - 2.31% Consumer Goods / Services - 7.69% Financial - 7.69% Government - 3.85% Healthcare - 9.23% Hospitality / Entertainment - 3.08 Manufacturing - 7.69% Pharmaceutical - 0.77% Retail - 2.31% Technology - 23.85% Telecommunications - 2.31% Transportation - 4.62% Utilities - 0.77% 9.23% 23.85% Technology 7.69% 7.69% 12.31% 7.69%
  5. 5. Universal… US Do you have a (US) Employee Referral process? 87.6%
  6. 6. Global 53.8% 34.2% 53.8% 39.5% 87.6%
  7. 7. Distribution of Annual Hires ...but only 723,296 total employee referrals? That’s 2 for each opening! 312,475 HIRES from ALL sources...
  8. 8. Referrals… Let me count the ways. 1. Employee Referrals (87.6*, 27.5%) 2. Recruiter Sourced Referrals (78.4%, 18.27%) 3. Vendors (62.3%, 7.5%) 4. Alumni Referrals (62.3%, 9.0%) 5. Candidate Referrals (50.5%, 13.7%) 6. Customers (49.1%, 6.6%)
  9. 9. Job Level Hourly / Non-Exempt Interns / New Grads Experienced Professional (Non-Tech) Experienced Professional (Tech) Manager / Director VP / C-Level No referral hires Minimal referral hires Moderate referral hires Significant referral hires 0 25 50 75 100
  10. 10. Frequency “Spot promotions… Referral Blitzes.” “Posters hang on some of the walls.” “We just launched Taleo social sourcing (Talent Vine), otherwise it would be infrequent, at best.” “Formal communication 1x, informal talking recruiter to employee or manager is ongoing.” “Notifications are sent out with new job openings.” “Only in emergencies - need to be better.” “Intranet posting, recruiters email signatures.” How often do you refresh your ERP?
  11. 11. Candidate Awareness We have no resource available to educate employees about our program. The “How’d you learn about us” field in the employment application. Mentioned in corporate blogs. Company website, career pages or other company social channels. Source details and #’s published on the company website or social channels. Discussed during candidate interviews. Discussed when, or immediately after, an offer is accepted. Other. “Mentioned specifically by the recruiters, calls to new hires.” “New hire communication.” “Marketing Campaigns.” “As needed by department hiring or as management wishes to communicate.” “Part of our ATS.” How do candidates learn about your referral program?
  12. 12. Program MechanicsHow is ERP participation ensured? 37.40% ...the person referring the candidate takes an action. 12.10% ...the candidate being referred takes an action. 40.10% ...both the candidate and the person must take an action. 8.4% ...other. “Referrals for us are as simple as a name shared with recruiting. Should the person get hired, whoever shared the name gets the credit. At the same time, if the candidate mentioned someone specifically that referred them, that employee would be credited with the referral as well.” “The recruiter drives it and guides the employee.” “We accept either referrer or referral taking action.” “Applied through our ATS”
  13. 13. Technology None. Internally accessible via an employee portal. Part of (or bolted to) our ATS. A 3rd party stand-alone tool accessible by candidates. Internally developed stand-alone software. Content leading to employee referral built into our career website. Social media apps specifically used to engage employees as referrals. Other. What technologies do you use to augment your referral system?
  14. 14. Referral Tech Apps 3.85% 30.77% 42.31% 23.08% 66.7% ATS 7.3% Jobvite 1.0% Avature 2.1% LinkedInReferrals 1.0% Careerify 2.1% Paper/Sharepoint 1.0% EmployeeReferrals.com 1.0% Repify 1.0% EmployUS 1.0% Rolepoint 1.0% Goodjob 1.0% Talent Tag 2.1% Find.ly 7.3% TalentVine/Oracle 1.0% Jalp 1.0% Work4 1.0% JIBE 1.0% Zao How satisfied are you with your ATS (referral) service?
  15. 15. Dedicated Support None. Part-time Admin Full-time Admin ERP Champ (part-time) ERP Champ (full-time) Dedicated Recruiter or team “There is a recruiter/admin support but it is not their full- time job… but it should be. We receive approximately 1,500 referrals per month and our program is mostly manual.” Dedicated labor assigned to your referral program? 29.4% 19.6% 5.9% 26.5% 17.6% 2.9%
  16. 16. The Candidate Experience 68.4% Yes 31.6% No GREAT (quick, clear and simple) 25.9% GOOD (easy, but could be better) 26.7% OK (some frustration but works) 29.6% BAD (confusing and/or time consuming 13% HORRIBLE (difficult and/or source of dropoff) 4.6% Rate the DIFFICULTY of submitting a referral to your company. Do you respond differently to referred candidates?
  17. 17. The Candidate Experience Referred Candidates are required to indicate the name of the referring employee in the application process. 54.9% Referred candidates are dispositioned faster than other candidates. 52.0% Referred candidates are promised an interview. 3.9% Referred candidates are promised status. 18.6% Referred candidates can check their own status via ATS 48% Referred candidates are informed when rejected. 65.7% Referred candidates can request and be given feedback 20.6% Other 11.7% Are these CANDIDATE elements part of your ER program? ● Referring team members receive notice if a referral is selected as well as when the referral is expiring. ● Referral is send a direct link to apply versus going to the website. Upon completion, they receive a “thank you.” ● Referred candidates are promised an interview in sales and technology positions. ● Referring employee can see the status of his/her referrals online. ● Every referral is contacted by either phone or email. ● Referrals are not treated any differently although I recommend treating them differently. ● Referred candidates are researched more thoroughly than other candidates. ● Referred candidate are contacted by a recruiter within 48 hours. ● Referrer is kept in communication on all steps of the recruiting process. Lots of hand holding and teams call and communicate outside the ATS after a normal letter is sent. ● Employee referral coach provided throughout the process.
  18. 18. The Candidate Experience Referring employees receive acknowledgment / thank you from Talent Acquisition. 78.4% Referring employees receive acknowledgment / thank you from their own leadership. 7.2% Referring employee must submit initial candidate application for referral to be accepted. 51.5% Referring employee is surveyed about the quality of their relationship to their referral. 14.4% Referring employee is informed of referral status (interview, disposition) throughout the process. 39.2% Referring employee’s manager is informed when referral is hired. 14.4% Other 11.3% Are these EMPLOYEE elements part of your ER program? ● Informed post hire. ● There is so much communication; it’s not promised - it’s just part of our process. ● Employees instruct the referral but they can also send us a note via email. We do not “make” the referral upload; we have our admin and recruiters there to help with the entire process including uploading into the ATS if necessary. ● The referring employee isn’t really “surveyed” but when starting the referral process the employee does have to enter in some notes about how they know the candidate and why they are being recommended. ● Referring employee is informed of referral status (via platform/tool.) ● A company-wide email goes out every quarter showing which employees had referrals hired in that quarter.
  19. 19. BONUS: GeneralDo you offer bonuses for employee referrals that are hired? 58.3% Yes, EVERY referral hire has a reward. 21.3% Sometimes - only certain job class and/or levels are eligible. 18.5% Sometimes - it is decided in advance if the job is eligible. 6.5% Yes, a raffle or contest is periodically used to incent referral behavior. 5.6% Yes, even those making referrals that do not become hires get something. 8.3% No, our program is a basic “Attaboy”
  20. 20. BONUS: Non-monetaryExamples provided of rewards that are NOT monetary. ● iTunes gift card and raffle for iPad (for hires.) ● $23,000 Polaris Slingshot given away as grand prize. ● For retail stores, a points system is used so associates can spend points on gifts. ● Charity donations for senior level people not eligible for monetary rewards. ● Vacation days. ● Awarded points through Achiever’s program which they can use to purchase any number of items. ● Trip to Cayman Islands and 3 additional days of paid time off.
  21. 21. BONUS: Amount Paid $0 $100 $250 $500 $1,000 $1,500 $2,500 $5,000 +$5,000 Typical Non-exempt position 9.2% 1.2% 15.3% 36.7% 16.3% 6.1% 5.1% 4.1% 1% Difficult to fill non-exempt position 13.5% 0% 10.4% 32.3% 19.8% 8.3% 10.4% 3.1% 2.1% Typical Exempt position 12.1% 1% 6.1% 12.1% 28.3% 13.1% 17.2% 7.1% 3% Difficult to fill Exempt position 5.1% 0% 2% 10.2% 23.5% 14.3% 21.4% 17.3% 6.1% Director/Executive position 9.3% 0% 3.1% 11.3% 17.5% 13.4% 21.6% 14.4% 9.3% Contingent or Part-time position 80.2% 4.4% 4.4% 3.3% 3.3% 1.1% 1.1% 1.1% 1.1%
  22. 22. BONUS: When It’s Paid N/A At Hire Two weeks after hire One month after hire Three months after hire Six months after hire One year after hire More than one year after hire Full Payment: 8.6% 7.5% 3.2% 24.7% 47.3% 8.6% 0% 0% Partial Payment (Initial) 70.4% 11.4% 2.3% 6.8% 9.1% 4.5% 0% 0% Partial Payment (Final) 70.4% 0% 0% 0% 4.5% 22.7% 0% 0%
  23. 23. BONUS: Tax 85.6% No 13.4% Yes 0.9% Sometimes Does your organization gross-up the rewards/payments for tax?
  24. 24. BONUS: Restrictions Restricted to Candidates referred within documented process (ATS, etc.) prior to hire date. 12% Restricted to the referring employee being in good standing at time of payout. 7.4% Restricted to “eligible” employees - certain employee groups such as HR, Staffing, Executives are non- participants. 62% Other 9.3% ● VP or above, referring manager over same department, retired employees. ● FTE only can participate. ● Must be active employee to receive the bonus. ● TM Referral form required/validate within 30 days of hire and both referring and referred TM must be active at the 90-day mark. ● Geography - some countries offer a referral bonus, others don’t.
  25. 25. BONUS: Who Pays 26.7% Corporate HR 13.9% Staffing 14.9% Hiring Manager’s Division 33.4% Hiring Manager’s Department 10.9% Other “The hiring manager’s division pays bonus for hard to fill skills in their department.” “Referring employee’s department (payroll system restriction.)” “Combination, some business pay and in one business staffing does. This is being harmonized.” “Referrer’s manager.”
  26. 26. NO YES Referral QualityCan you differentiate referrals that are more likely to lead to a successful hire, higher performance or improved retention? 88.8% 11.2%
  27. 27. Yes - We monitor the quality of referrals from each employee and we DO prioritize consideration for their referrals based on scores. Yes - We monitor the quality of referrals from each employee but DO NOT prioritize consideration for their referrals based on scores.No - We do not monitor the quality of referrals in connection to the referring employee. Referral Quality 83.2% 2.8% 14% Do you in any way track the quality of referrals back to the employee referring them?
  28. 28. Round Table 1. Increasing our ERP hires is a major goal for us this year with several projects planned for 2016. 2. Our program is very new, so I expect some of my answers to change as it matures. 3. We are in the process of launching a new ERP program at [company] and I am the Executive Sponsor of the project. 4. We are moving to a new ATS and are shocked that these technologies have not created anything new or special to support referrals. 5. Our focus in 2016 will be to enhance our referral program and recruit more talent through external/non-employee referrals. 6. We are planning a total re-vamp of our referral program for North America in 2016. People like working for us so we constantly receive referrals even without a formal program or bonus. It almost seems like NOT having a bonus makes people more willing to give referrals. It may be the environment, lots of PhD’s.
  29. 29. Round Table 1. employeereferrals.com does a good job of showing the employee matches in their network for different jobs. The problem is that they have a very loose connection to the ATS, requiring a manual process to administer the ERP. I also like TalentVine (Taleo/Oracle Social Sourcing) because of it’s communication capability and integration with Taleo. The best solution I can think of is to connect these two technologies… give me a tool that integrates with Taleo without manual administration, a tool provides that provides a strong communication/campaign platform, and one that prioritizes marketing to employees based on jobs that are most connected to their personal networks. 2. We’re moving to an Avature portal this year which will make things better, and looking at an overall program review. 3. We recognize we need to do a better job at communicating our employee referral program. 4. Our program is a bit dis-jointed, as we have 10 different business units, each with their own program. There is no way for an employee of one business to earn a bonus when referring someone to another business.
  30. 30. Round Table 1. Just instituted the program 2 years ago. Still evolving and we need to up our bonus amounts. 2. This is an opportunity in 2016 and we have this in the budget to improve. 3. This is a great topic and one that we have been discussing. Should we offer a monetary incentive to our ERP? I am very interested in learning what other large and financially sound companies offer. This will help us take our ERP from good to great. 4. I am in the beginning stages of creating reporting around quality of hire for referrals. 5. We are implementing an ATS with LinkedIn Referral integration for launch in March 2016. Hoping to fix our manual and broken system. 6. There is a robust program in place, but the process is confusing and relies on technology that the majority of our employees are not comfortable using. This leads to frustration and anger at HR for the program and a drop-off in participation. Individual recruiters tend to be the chief promoters of the program. 7. We have a sales-focused ERP that gets confused with HR’s and the employees experience “referral fatigue” when constantly asked for names of potential employees as well as customers.
  31. 31. Referrals 2016 CareerXroads referral review Gerry Crispin & Chris Hoyt CareerXroads | www.careerxroads.com

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