Referrals can be a highly successful resource for your talent pipeline if you can tap into your employees’ passion. Kara Yarnot of Meritage Talent Solutions, and talent leaders from Owens Corning, Appirio, Sapient Nitro and Cisco share how they have scaled their referral programs to consistently be their #1 source of hire.
Continue your talent acquisition transformation at Talent Connect 365: http://linkd.in/1z8YEaf
3. SURVEY RESULTS
Companies with Formal Employee Referral
Programs
71%
of companies report having a formal
employee referral program
Formal programs are most common in
very large employers.
of respondents with more than 50,000
employees
Does your company currently
have a formal employee
referral program?
For companies with fewer than
500 employees
only 59% of respondents reported having
a formal program
86%
59%
#intalent
4. PROGRAM STRUCTURE
BENCHMARKING
Our survey also revealed interesting data about
program structures, including management
models, goals, rewards and results.
#intalent
5. PROGRAM RESULTS
Referrals Continue to be a Primary Source of Hire
for Employers with Referral Programs
% 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
hiring 25% goals for their program
#intalent
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%
#intalent
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%
Currently have program
Planning to launch program
9% 0% 16% 9%
27%
Decentralized Hybrid Not yet
decided
Most companies with programs
use between
1 and 3 FTEs
In HR to manage the program.
Other departments, including accounting and
payroll, also have resources dedicated to
program management in approximately
of companies with
50% programs.
#intalent
8. Referral Program Incentives
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
9% 4% 18%
2% 0%
Between $1000
and $4999
$5000 or
greater
Don’t know
of companies also offer incentives to
employees for submitting a referral such as
cash, prize drawings, company logo items, gift
cards and coupons for dinner, movies and coffee.
18%
Non-Cash Incentives Offered for Referral Hires
of companies offer or plan to offer
25% non-cash incentives for referral hires.
54%
Prize
Drawings
35%
Others
27%
Company
Logo Items
15%
Vacation
Days
Other incentives include coupons for movies,
dinner, coffee; music cards, and awards points.
#intalent
9. TREND # 1
Social Referrals - Driven by the
implementation of 3rd party Referral
Technology
#intalent
10. TREND # 2
Moving Beyond the “Employee”
Referral Program
Companies are recognizing that individuals outside their
employee base are great sources of referral candidates.
Thus, they are inviting them to participate in their referral
programs. Former employees and customers are the most
likely to be included in these programs.
#intalent
11. Owens
Corning
Teresa Keeler
Talent Acquisition Leader for North America
#intalent
12. Owens Corning at a Glance
Ø Founded
in
1938,
an
industry
leader
in
glass
fiber
insula7on,
roofing
and
glass
fiber
reinforcements
Ø 2013
sales:
$5.3
billion
Ø 15,000
employees
in
27
countries
Ø Fortune®
500
company
for
59
consecu7ve
years
Ø Component
of
Dow
Jones
Sustainability
World
Index
Ø Three
powerful
businesses,
three
valuable
franchises
– Insula7on
– Roofing
– Composites
#intalent
13. Streamline, Source, Share & Sign
Streamline the Process
– Know your data, know your process.
– Follow-up is critical!
Source from all Networks
– Everyone is a Talent Ambassador!
Share Best Practices
– Pump up your profile
– Market your open positions
– Leverage your Employee Referral Program
– Power up your network
Sign - Incorporate into Internal Email Signature
Teresa M. Keeler, SPHR
Talent Acquisition Leader for North America
Click here for employee referral process
#intalent
15. Appirio: A Global Cloud Consultancy that Helps You Achieve
Results Fast by Harnessing a Global Expert Community
World's
Top
Designers,
Developers
&
Data
Scien>sts
+ =
Your Business
Reimagined
Services Powered by 600k Member
topcoderTM Community and Crowdsourcing
Platform
8
years,
800
enterprises,
3
million
users
moved
to
the
cloud
#intalent
16. Recruiting- Q2
➢ 108
offers
accepted
➢ 37
offers
sent
in
last
2
weeks
(2
internal)
➢ Employee
Referral
Rate
(YTD
2014
)
42%
➢ 97
hired
QTD
Recrui>ng
Spotlight
–
[topcoder]
Presales
Solu>on
Architect
Speaker: Adam Morehead
Customers
• Relationships
• [topcoder] education
• Engagement post-sale
Technology
• Technical leader & solutions provider
• Technical ninjas (old & new technology)
Presentations
• Enthusiastic and confident presentations
• Helping AE’s deliver amazing sales presentations
Community
• Showcase [design, development, data science]
• Leveraging [topcoder] to deliver presales assets
• Educating and growing community resources #intalent
17. Continuing Education Session Presented by Top 2
Referrers at Appirio
Share Share Share
Keep
an
Eye
on
open
posi>ons
Direct
Contact
#intalent
20. SapientNitro
A new breed of agency redefining storytelling for an always-on world
Hiring Considerations
• Grow a professional services company
• Rapid growth on a global scale
• Hire niche talent in multiple verticals
• Hire in a highly competitive landscape
#intalent
21. Referral Program Highlights
• Is automated and easy
– removes roadblocks
• Delivers a high level of customer service
– ensures people will continue to refer
• Goal is to create engaged candidates
• Is a seamless and collaborative effort
between hiring, marketing, sourcing and our
people
#intalent
22. Program Success
Hires/Results
– Numbers: Referrals are our largest
source of hires
– Quality: Referred candidates tend
to be a better long term fit
Engagement
– Employee engagement: 80% have
referred
– Candidate engagement: Award
winning candidate experience
#intalent
23. Cisco
Systems
Jen Rice
Global Inclusion and Collaboration Talent Acquisition Lead
Cisco Systems
#intalent
24. • Founded in 1984
• 75,000 Employees
• Worldwide Leader in IT
• FY’14 Revenue of 47.1 Billion
25. Cisco Employee Resource Organization (ERO)
Employee Referral Program Enhancements
• Bring visibility about Cisco’s ERP to Diverse Cisco Employee Networks (ERO’s)
• Provide ERO members with knowledge about open roles and insight about how to refer
high quality talent
• Learn if strengthening ERO aligned referrals leads to an increase in diverse hires over
time by measuring multiple facets of ERO Referral Submissions, Interviews and Hires
• Increase Employee Referral Hires while optimally infusing the program with enhanced
Diversity
#intalent
26. ERO Talent Acquisition
Collaboration
• ERO ERP Tracking
through Referral
Submission Tool
• TA shares best practices
by function for “high quality
referral” skill set
combinations
• Feedback to and from
EROs about ERO ERP
and TA Initiatives
Results
• 10+ Participating EROs
(more than 1,000
Referrals)
• Diverse Hiring Rates 25%
+ higher than generalized
ERP diverse referral
submission rates
• % of ERO ERP Submittals
Interviewed doubled
between Q3 & Q4
Open Issues/Next Steps
• Look for new ERO
Collaboration
Opportunities
• Test out diverse hiring
results over longer period
of time to assess validity of
results and scalability
• Enhance Marketing to the
EROs about the program
#intalent