Talent acquisition levels are often higher for referral candidates. Your employee already knows what the company offers and what the company needs –– even if he/she doesn’t know the specifics about the open job. That overall company culture information can be communicated in personal, meaningful terms to an interested candidate (e.g., Our company is looking to make a difference).
With a highly qualified candidate (one who comes with a strong recommendation as being a good match to the open position), your company may save money on standard recruiting costs. Referrals still go through the same processes –– posting of job ad, completing application, background check, etc. –– but referrals may have more commitment to the job, and may be less likely to quit. In the end, this can save your company from the costs of employee turnover.
Referral bonuses are a big hit in the workplace. That’s because it’s a win-win-win for employee, candidate, and company alike. But don’t think that money alone drives your employees. Many employees are aware of how referrals could reflect upon them and only refer candidates if they feel he/she would be a good addition to the team, possesses a similar work ethic, and/or has a knowledge or skill set that would be good to introduce to the company as a whole.
A robust applicant tracking system can actually help you boost employee referrals. With multiple choice and/or text response pre-screening questions that have scoring capabilities, you can design your online application to have the referred applicants stand out. This will not only help you track who is referred, but will help to ensure that the employee gets their bonus.