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RAISING YOUR EMPLOYEE
REFERRAL PROGRAM RESULTS
TO 50% OF ALL HIRES
“50% is the new ERP target”
© Dr John Sullivan
1
www.dr...
2
4 Action Steps to Kick Start an
Employee Referral Program
Strategic action #1
Prioritize and focus your ERP effort
Strategic action #1
Focus ERP efforts on high priority jobs including:
Mission critical jobs and business units
Revenue ...
Prioritize the employee
with the closest relationship
Accolo uses a referral community
 For every open job, it selects a ...
Be careful
Homer will refer
people also
Prioritize your employees
Focus on referrals from top performing employees
Why? Because referral hires from top performer...
Strategic action #2
Do not overemphasize monetary rewards
Strategic action #2
Use “help the team" motivation (not $)
The most effective referral motivation approach
emphasizes the...
Strategic action #2
You can build a “help the team” mentality… by
emphasizing these benefits to employees
Higher quality ...
2 examples… referrals don’t require $ bonuses
 Reached and maintained a +70% referral rate
with no $ rewards
 Edward Jon...
Strategic action #3
Be proactive in seeking out referrals
Strategic action #3
Why you need to be proactive?
“Great people know great people”, however most
employees are extremely ...
“Proactive” referral tools
A) Give me 5 – Proactively approach top employees
Ask them to identify and then contact the…
 ...
“Proactive” tools
B) Reach out to job references for referrals
 Identify top performing hires from last year
 Call their...
“Proactive” tools
C) “Most wanted list” for relationship building
 Executives identify… a list of gamechangers
and potent...
Strategic action #4
Broaden the program
and expand it’s eligibility
Strategic action #4
Broaden the program
Add on-boarding referrals – proactively ask new
hires for referrals during on-boa...
Strategic action #4
Broaden the program
 Add internal movement referrals - have a
referral program that is designed to en...
Expand program eligibility
Expand eligibility
Executives are encouraged to refer - a “white
glove treatment” recruiter ca...
Expand eligibility
Expand eligibility to non-employees
Open up referrals to non-employees including
Family
Contingent wo...
Four action steps to kickstart your Employee Referral Program
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Four action steps to kickstart your Employee Referral Program

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Companies track revenues, costs, profit and a number of key performance metrics. With more companies embracing the business value of employee engagement, the need to measure and monitor engagement as a key performance metric becomes critical for measuring success and improving results.

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Four action steps to kickstart your Employee Referral Program

  1. 1. RAISING YOUR EMPLOYEE REFERRAL PROGRAM RESULTS TO 50% OF ALL HIRES “50% is the new ERP target” © Dr John Sullivan 1 www.drjohnsullivan.com
  2. 2. 2 4 Action Steps to Kick Start an Employee Referral Program
  3. 3. Strategic action #1 Prioritize and focus your ERP effort
  4. 4. Strategic action #1 Focus ERP efforts on high priority jobs including: Mission critical jobs and business units Revenue generating jobs Jobs with a high previous referral success rate Hard to fill jobs “Sudden” key vacancies Tip – begin with a shortlist of targeted jobs and then add positions
  5. 5. Prioritize the employee with the closest relationship Accolo uses a referral community  For every open job, it selects a few employees based on the likelihood that they will know the right person  As a result, Accolo has averaged 8 referrals for every job (#1)
  6. 6. Be careful Homer will refer people also
  7. 7. Prioritize your employees Focus on referrals from top performing employees Why? Because referral hires from top performers… produce nearly 3 times more profit… compared… to a referral hire from a below average performer Seek out and prioritize referrals from top performers But also… warn, restrict or ban employees that routinely make weak referrals Source: “The Value of Hiring through Referrals” (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
  8. 8. Strategic action #2 Do not overemphasize monetary rewards
  9. 9. Strategic action #2 Use “help the team" motivation (not $) The most effective referral motivation approach emphasizes the opportunity to work alongside great people… because the team wins more frequently… when it has the best players
  10. 10. Strategic action #2 You can build a “help the team” mentality… by emphasizing these benefits to employees Higher quality hires will improve business results and thus raise employee stock value and bonuses It’s part of the responsibility of being a team player You will be recognized for “helping the team” You will learn more from higher-quality new hires You won’t have to work alongside slackers Note: A feedback loop is required to tell employees whether they made a “junk” or a “star” referral Also show them the correlation between improved business results and a higher % of ERP hires
  11. 11. 2 examples… referrals don’t require $ bonuses  Reached and maintained a +70% referral rate with no $ rewards  Edward Jones reached 55% with no bonus
  12. 12. Strategic action #3 Be proactive in seeking out referrals
  13. 13. Strategic action #3 Why you need to be proactive? “Great people know great people”, however most employees are extremely busy… so to maximize your referrals… you will need to proactively approach your top referring employees Here are 3 proactive ERP tools to consider
  14. 14. “Proactive” referral tools A) Give me 5 – Proactively approach top employees Ask them to identify and then contact the…  Best manager they ever had  Best team leader  Best idea person or innovator  Best person that "runs into" burning buildings  Best problem solver  Best sales person that beats you  Best student in college that was so smart  Best mentor  Best technical skilled person  Best international talent  Best customer service person
  15. 15. “Proactive” tools B) Reach out to job references for referrals  Identify top performing hires from last year  Call their references that said accurate things  Thank them  Ask them “Do you know anyone else as good?”  Ask them to be a future reference source
  16. 16. “Proactive” tools C) “Most wanted list” for relationship building  Executives identify… a list of gamechangers and potential “magnet hires” at the beginning of the year  Employees are asked to seek out these highly desirable individuals and to build a relationship with them over social media (Relationship recruiting)  When they eventually agreed to consider becoming a referral… speed hiring is required
  17. 17. Strategic action #4 Broaden the program and expand it’s eligibility
  18. 18. Strategic action #4 Broaden the program Add on-boarding referrals – proactively ask new hires for referrals during on-boarding (Eli Lily) Add college referrals – the college population is well connected through social networks, so add a referral sub-program for college hires and interns (Endeca, Intuit) Add referrals for executive positions – advanced ERP’s also cover openings for executive positions Focus on boomerangs – encourage your employees to target your best corporate alumni (also allow them to make referrals)
  19. 19. Strategic action #4 Broaden the program  Add internal movement referrals - have a referral program that is designed to encourage internal movement. The best practice firm Booz Allen has a “Career mobility” team (Also MS, Cisco)
  20. 20. Expand program eligibility Expand eligibility Executives are encouraged to refer - a “white glove treatment” recruiter can be assigned to encourage executives to make referrals (Deloitte) Managers and HR are made eligible – managers and those in HR are also well connected, so they should be eligible to make referrals (Accenture) Note: you can help minimize conflicts of interest by offering the option of contributing any ERP reward to charity.
  21. 21. Expand eligibility Expand eligibility to non-employees Open up referrals to non-employees including Family Contingent workers Consultants and vendors Customers Board members Corporate alumni (Internosis, Clearlink, CACI, Verinon)

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