The document discusses trends in employee referral programs, highlighting that 71% of companies have formal programs, with referrals representing a significant source of hires. The main goals of these programs include increasing candidate quality, and cash incentives remain the most popular form of reward for referrals. Additionally, there's a growing trend to include non-employees in referral initiatives, as well as the adoption of third-party referral tools to enhance program effectiveness.

1. Innovations in Employee Referral
Programs
Kara Yarnot, Founder & President
Recruiting Trends Conference 2014

2. Imagine………
2
2014
MERITAGE TALENT SOLUTIONS’
EMPLOYEE REFERRAL
TRENDS REPORT

3. 3
PROGRAM STRUCTURE
BENCHMARKING

4. Who Has Formal Employee Referral
Programs?
71%
of companies report
having a formal
employee referral
program
4
86%
36%
plan to launch a
program in the next 18
months.

5. Referrals Continue to be a Primary Source
of Hire for Employers with Referral
Programs
5
% of External Hires that are Referrals
27%
0 - 25%
26 – 50%
51 – 75%
76 – 100%
Don’t know
47%
38%
4%
4%
7%
of companies with referral
programs report that more than
half of their external hires come
from their referral program.
8%
of companies report meeting or
exceeding their referral program
hiring goals.
25%
of companies don’t actually have
25% hiring goals for their program

6. 6
GOALS OF REFERRAL PROGRAMS
Increasing the Quality of the Candidate pool
is the top goal for companies.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Increase Quality Increase Quantity Decrease Time
to Hire
49%
Increase
Retention
Increase
Diversity
Currently have program
Planning to launch program
Other Don’t Know
93%
67% 61%
36%
58%
27% 27%
32%
18% 9%
2% 2%

7. REFERRALPROGRAM MANAGEMENT
Referral Program Structure
Centralized
program
management is
the most common
management
structure.
76%
64%
Centralized
80%
70%
60%
50%
40%
30%
20%
10%
0%
9% 0%
7
Currently have program
Planning to launch program
16%
9%
27%
Decentralized Hybrid Not yet
decided

8. 8
Tools Used to Manage Program
Currently have
program
Planning to launch
program
64%
55%
50%
18%
14%
27%
3%
0%
18%
Spreadsheets ATS 3rd Party Other Not
Decided

9. 9
Referral Program Incentives – Cash is King
of companies offer
or plan to offer cash
incentives for
referral hires.
59%
Cash awards to
employees for referral
hires are the most
common incentives
employed.
Average Cash Incentive Paid for Referral Hires
26%
73%
Less than $1000
69%
Currently have program
Planning to launch program
2% 0%
18%
$
$
9% 4%
Between $1000 and
$4999
$5000 or greater Don’t know
18%

10. 10
Thinking Beyond Cash
25%
of companies offer or
plan to offer non-cash
incentives for referral
hires.
54% Prize
Drawings
35% Others
27% Company
Logo Items
15% Vacation
Days

11. 11 Referral Program Enhancements
Social
Referrals
Mobile
Accessibility
Improved
Marketing
Non-
Employees
Improved
metrics
Complete
Overhaul

12. 12
PRIMARY REFERRAL PROGRAM
TRENDS IDENTIFIED

13. 13
TREND # 1
Social Referrals - Driven by the
implementation of 3rd party
Referral Technology

14. Types of Social Referral Tools
Broadcast
14
Broadcast & Discovery

15. 15
All of the 3rd party referral
tools are based on social
referral functionality.
3rd Party Referral Tools
Companies
planning to
launch referral
programs are
more likely to use
3rd Party Referral
Tools.
14%
Currently
have
program
2277%%
Planning to
launch
program

16. SATISFACTION WITH CURRENT REFERRAL TOOLS
How Satisfied Are You With Your Current
Referral Tools?
16
of respondents who are Very
Satisfied use a 3rd party
solution.
Very
Satisfied
Partially
Satisfied
Neither Satisfied or Dissatisfied
Partially Dissatisfied
Very
Dissatisfied
of respondents who are Partially
Satisfied use ATS Solution,
63%
83%

17. 17
TREND # 2
Moving Beyond the “Employee”
Referral Program

18. 18
Individuals Beyond Employees Included
in Program
Customer
48%
100%
Social Media
Connections
48%
60%
Vendor
Other
26%
20%
Alumni
70%
80%
Planning
to launch program
Currently have
program
35%
40%
of respondents with programs already
include non-employees in their
programs.
22
%
17
%
An additional 17%
plan to expand their
programs to include
non-employees.
of respondents planning to launch
programs with include non-employees
in their programs.
45
%

19. THANK YOU
Kara Yarnot
President, Meritage Talent Solutions
@klyarnot
LinkedIn.com/in/karayarnot
19