Innovations in Employee Referral Programs

Innovations in Employee Referral Programs

Kara Yarnot, Founder & President

Recruiting Trends Conference 2014

Imagine………

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MERITAGE TALENT SOLUTIONS’

EMPLOYEE REFERRAL

TRENDS REPORT

2014

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BENCHMARKING

PROGRAM STRUCTURE

Who Has Formal Employee Referral

Programs?

of companies report

having a formal

employee referral

program

71%

4

86%

plan to launch a

program in the next 18

months.

36%

Referrals Continue to be a Primary Source

of Hire for Employers with Referral

Programs

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% 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 goals for their program25%

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Increasing the Quality of the Candidate pool

is the top goal for companies.

GOALS OF REFERRAL PROGRAMS

10%

0%

30%

20%

50%

40%

70%

60%

90%

80%

100%

Increase Quality Increase Quantity Decrease Time

to Hire

Increase

Retention

Increase

Diversity

Other Don’t Know

Currently have program

Planning to launch program

93%

67% 61%

36%

58%

27% 27%

49%

32%

18% 9%2% 2%

Referral Program Structure

REFERRALPROGRAM MANAGEMENT

Centralized

program

management is

the most common

management

structure.

76%

64%

Centralized

70%

60%

50%

40%

30%

20%

10%

0%

80%

9% 0%16%

9%

27%

Decentralized Hybrid Not yet

decided

Currently have program

Planning to launch program

7

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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

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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

Less than $1000

26%

73%69%

2% 0%18%

4%9%

$

$

Currently have program

Planning to launch program

Between $1000 and

$4999

$5000 or greater Don’t know

18%

10

Thinking Beyond Cash

of companies offer or

plan to offer non-cash

incentives for referral

hires.

25%

54%Prize

Drawings

35% Others

27%Company

Logo Items

15%Vacation

Days

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Referral Program Enhancements

Social

Referrals

Mobile

Accessibility

Improved

Marketing

Non-

Employees

Improved

metrics

Complete

Overhaul

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PRIMARY REFERRAL PROGRAM

TRENDS IDENTIFIED

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Social Referrals - Driven by the

implementation of 3rd party

Referral Technology

TREND # 1

Types of Social Referral Tools

Broadcast

Broadcast & Discovery

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All of the 3rd party referral

tools are based on social

referral functionality.

Companies planning to launch referral programs are more likely to use 3rd Party Referral Tools.

Currently

have

program

14%

Planning to

launch

program

27%27%

3rd Party Referral Tools

How Satisfied Are You With Your Current

Referral Tools?

SATISFACTION WITH 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%

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Moving Beyond the “Employee”

Referral Program

TREND # 2

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Individuals Beyond Employees Included

in Program

Customer48%

100%

Social Media

Connections

48%60%

Other26%

20%

Alumni70%

80%

Planning

to launch program

Currently have

program

Vendor35%40%

of respondents with programs already

include non-employees in their

programs.

22

%

An additional 17%

plan to expand their

programs to include

non-employees.

17

%

of respondents planning to launch

programs with include non-employees

in their programs.

45

%

THANK YOU

Kara YarnotPresident, Meritage Talent Solutions

@klyarnotLinkedIn.com/in/karayarnot

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