Top 10 reasons to build an effective employee referral program


Published on

A well-structured Employee Referral Program is one of the best ways to generate new hires and helps increase retention, lower costs, boost morale, and essentially make the entire referral process easier. Here are the top 10 reasons why you should have an effective employee referral program.

Zalp is the #1 employee referral tool which lets you effortlessly launch, manage and boost your employee referral program. Visit to know more.

Published in: Business, Economy & Finance
  • Be the first to comment

Top 10 reasons to build an effective employee referral program

  1. 1. Top 10 Reasons to build an effective Employee Referral Program
  2. 2. The benefits of a well designed and executed employee referral program are innumerable, with some directly measurable benefits and many indirect benefits relating to better employee engagement and morale as well as higher retention rate. Here are 10 top benefits of a robust employee referral program which might help organizations provide more support and impetus to their referral program. 1 2 3 4 5 6 7 8 9 10
  3. 3. 1.High Quality Candidates The most immediate benefit of employing a referral program is that organizations get access to a pipeline of high quality candidates resulting in better quality of hiring and in turn a more productive workforce. 1 2 3 4 5 6 7 8 9 10
  4. 4. Higher interview to hiring ratio A higher interview to hiring ratio is possible as employees act as partners in the process. Since they are in the best position to sell the job and company to the candidate and satisfactorily answer candidate queries, the conversion ratio is much higher. 2. 1 2 3 4 5 6 7 8 9 10
  5. 5. Lower Cost per Hire A very big benefit that directly impacts the bottom line of organizations is that the cost of hiring through referral is significantly lower compared to other traditional sources of hiring like external agencies and job advertisements. 3. 1 2 3 4 5 6 7 8 9 10
  6. 6. Culture Fit Since referred candidates are mentored by the referring employees, they are able to assimilate into the culture of the organization faster and better. This leads to more productive employees who stay engaged with the organization much longer bringing down employee turnover and by extension reducing the burden on the recruiting team. 4. 1 2 3 4 5 6 7 8 9 10
  7. 7. Global Reach A big advantage of a referral program is that it can be administered at a global level enabling organizations to maintain a global database of high quality talent. Incorporate social media in your employee referral program to maximize your reach. 5. 1 2 3 4 5 6 7 8 9 10
  8. 8. A well run employee referral program increases the efficiency of the HR and recruiting team. Since employees are made partners in the process of hiring, the burden of sourcing and hiring gets shared among many leading to higher and faster closure rate. Recruitingmade easier 6. 1 2 3 4 5 6 7 8 9 10
  9. 9. A robust employee referral program can go a long way in building and promoting your employer brand within the talent community. As employees act as brand ambassadors promoting the company and the job, they indirectly help to create a positive brand image for the company. Employer Branding 7. 1 2 3 4 5 6 7 8 9 10
  10. 10. A major indirect benefits of a well run employee referral program is that it helps to build a pipeline of quality candidates who do not fit the immediate requirement. These referred candidates constitute a valuable pipeline available for immediate capitalization for future openings. Candidate Pipeline building 8. 1 2 3 4 5 6 7 8 9 10
  11. 11. Referral programs constitute a powerful engagement tool as it empowers employees to participate in the process of building the organization with high quality talent. A well communicated and implemented employee referral program helps to keep employees motivated and engaged with the organization leading to a positive and enabling work culture. Employee Engagement 9. 1 2 3 4 5 6 7 8 9 10
  12. 12. 1 2 3 4 5 6 7 8 9 10 Improved ROI A robust employee referral program helps an organization realize better ROI on its investment both in terms of lower cost of hiring, faster filling of open positions as well as higher productivity of referred employees. 10.
  13. 13. ZALP is just a click away ( Hope these reasons clearly highlight the benefit of employee referral programs in organizations. If you need any help in setting up your employee referral program, You may also opt for a free consultation on improvingyour referral program results. Our employee referral specialists would be glad to help.
  14. 14. For more information, visit To book a consultation appointment,drop a mail to You may also call us for any other assistance 1-866-217- 1267 The Employee Referral Booster