Tag Archives: employee referral program

Employee Referral Programs – Pros and Cons

Employee Referral Program is a tried and tested method of recruiting that has retained its popularity amid all the new developments in the domain of recruiting. It is still widely believed that “referrals make the best hires.” Therefore, a carefully crafted employer referral program yields productive candidates at a quicker pace and effectively reduces attrition rate as employees hired through the process are much likely to stick to the job for a longer period compared to their counterparts. Besides, it’s cost effective too, for existing employees in companies scout for apt candidates for a position from their social circle. And for every successful hire, the referring employee is adequately compensated with a referral bonus.Realizing the importance of ERPs, talent hunt firms and HR departments in small and big companies are channelizing their efforts to come up with effective employee referral programs to procure better employees in the long haul. A lot of attention and planning is done on how to popularize such programs, make them effective enough so that referring employees act responsibly by recommending capable candidates and of course the compensation package or referral bonus for employees. ERPs are also a great way to get to passive candidates.

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