Recognizing the importance of employee referrals in hiring, Jobvite declares May to be National Employee Referral Month.
Getting a job referral from a friend or contact substantially improves the chances of being hired. According to recent data collected by Jobvite, approximately one in 7 referrals (compared to 1 in 100 general applicants) lands a job.
Throughout the month of May, Jobvite will celebrate the company’s first annual National Employee Referral Month by touting the benefits of referrals and encouraging employees to share jobs opportunities.
“All the data Jobvite has collected shows employee referrals make the best hires. But most companies see just a small percentage of their staff participating — a problem Jobvite solves by making it quick and easy for any employee to promote opportunities across their social networks,” said Dan Finnigan, CEO of Jobvite.
Employee referrals help employers expand their reach for any job opening. While an HR manager often has more than 500 contacts, getting more staff members involved in hiring exponentially improves the process.
For example, if a company has 100 employees and each employee has an average social network of 150 friends, the potential reach for an open position becomes 15,000 people.
Other referral-related findings include:
- 44 percent of new hires are employee referrals, more than double the industry standard.
- Employee referrals get hired 55 percent faster than candidates from company career sites.
- HR executives rated referrals the #1 source of quality candidates, ranking an 8.6 out of 10.
- 69 percent of employers offer a referral bonus to employees.