Employee Referral Programmes. Word-of-mouth is the best advertisement

Transcription

1 Employee Referral Programmes Word-of-mouth is the best advertisement

2 Contents Introduction The benefit of an ERP What Makes A Successful Programme? What Should The Reward Programme Contain? How Do You Communicate The ERP To Employees? Your Next Steps

3 Introduction Word-of-mouth is the best advertisement for your company, and an employee referral programme (ERP) gives you the power to communicate your roles using the most effective channel of all. Referrals make the best hires. The friends, family members or former colleagues closest to your best employees are also likely to make great employees. After all, who better to identify and recommend candidates whose skills match your goals, complement your values and are aligned to your mission? Today we estimate that 70% of major organisations include an ERP as an integral part of their attraction strategies. Not only is it an extremely cost effective recruiting tool, but a well-designed and properly implemented scheme also offers numerous additional benefits to both employer and employee alike.

4 The benefit of an ERP Reduction in cost-per-hire Inevitably, internal recruitment will save the business money because it s the shortest path to better hires. When employees know of friends and family with the desired skills you seek things happen faster. In fact, they can become your most effective sales people. A recent article in the Sunday Times suggested that an ERP saves between when recruiting the average salaried city employee. Experience suggests that this saving could be substantially increased at more senior levels where consultancy costs can be 30%+ of annual salary. Better-qualified candidates Employee referrals provide better-than-average candidates. The reason is that your employees understand your company culture and know what kind of personalities succeed in your organisation. What s more, talented people often know, and can attract more talented people. From the employer perspective this improves the initial targeting and generates a more qualified candidate. And because employees don t want to put their own reputation at risk when suggesting individual candidates, there is a level of pre-screening by the employee that takes place before he or she puts a name forward. (It s for this reason that careful handling is required should a referral not be selected). As well as gaining an insight to the values and culture, the candidate will also be able to get a better understanding of the organisation and their role within it. They are able to perform an element of selfselection at a very early stage of the process. Employee morale Good schemes have a consistent theme; even the simplest highlight the benefits of working for the organisation and provide reasons to join. This can have a very positive impact on current employees and increase and reinforce their reasons for staying. There is another benefit. In these schemes, the increased interaction of management and employees and the increased value that accrues to both groups in working together for the benefit of the organisation as a whole.

5 What Makes A Successful Programme? The components within all successful employee referral programs: Clear management support for the program This should not be seen as an HR initiative, but rather a management mandate to seek out talented new employees. Employees must feel empowered to seek out the best possible new candidates because it is everyone s job to create a better workplace. There are many ways to demonstrate management support, but the momentum for the program must be clearly seen to come from the very top of the organisation. This is absolutely crucial. Apart from providing the resources (financial and administrative) to make the scheme work, senior staff will shape employees perceptions of the programme which requires active management. Recommendation: Key communications, including all kick-off announcements, come from senior leaders. The program has a beginning, middle, and an end Even the most richly rewarded referral programs lose their impact if employees know there is no urgency or time sensitivity around making referrals. If next month is just as good a time as today to take action, the program will suffer from inertia. Well-run programs start with a bang, reinforce their message strongly in the middle, and drive home toward an exciting finish, always giving employees reasons to participate along the way. Does that mean that referrals end when the program ends? Of course not. Take stock, evaluate results and then take action, possibly introduce a new program. Good programs generate lots of energy and enthusiasm, but need to be periodically refreshed. Recommendation: Run the program for a fixed time period and make this clear in your communications.

6 What Makes A Successful Programme? There is constant communication and excitement about the program and information flows both ways Policies that sit in employee handbooks are easy to ignore but messages surrounding effective employee programs should be hard to avoid. That s why the buzz about an employee referral program must be everywhere and be tailored for diverse audiences. Recognition is one of the biggest rewards you can offer. Everyone likes to be a star, and there are many ways to ensure that referral stars get a lot of attention. It s also nice to single out the referred employees, and use them as walking proof of participation in the program at the same time you welcome them to the employee family. Communication is another form of reward. A referring employee will be delighted to hear formally that his/her friend s application is acknowledged, that the friend is being interviewed, that the friend has been hired. And if the referral was not hired then a note thanking the employee for their efforts, and regretting the lack of a fit at this time would still be appreciated. As all employees are potential recruiters it s ideal to keep them in the picture to encourage future participation. Recommendation: Integrate employee recognition and referral status programs with the communications plan. Rewards are clear and are given at each stage of the process The best referral programs reward at every point in the process. If a reward or recognition is withheld till the end of the hiring process, or until the completion of a probationary period, there will be a long lull between action and reward. Not all stages have to offer large rewards. Something small for making a referral can be a potent way to acknowledge the action taken by the employee and can go a long way to holding their attention until a major award is due. Recommendation: Reward at each step of the referral process.

7 What Makes A Successful Programme? Programme is efficiently administrated Nothing kills a referral program faster than bad word of mouth. Every step needs to be clearly explained and faithfully, fairly and expediently executed to build credibility for the program. There must be clear explanations of rules and parameters, and then the expectations of both candidate and employee can be managed. Recommendation: Appoint a manager to monitor and facilitate the program. If ERPs are to become a way of life at your organisation, each program must yield information about its effectiveness. Keeping track of referral, hire, and perhaps productivity or longevity results by various categories will ultimately provide valuable information about employee preferences and successful motivational factors. The ability to compare costper-hire data with other forms of recruitment will justify future programs and awards. Recommendation: Tag each referred employee throughout their tenure to compare with differently sourced staff.

8 What Should The Reward Programme Contain? The vast majority of schemes are cash based Most employees prefer to be rewarded with a straight cash bonus for recommending a successful referral. Usually this involves a qualifying period, usually 3 or 6 months, prior to the reward being awarded. Cash-based schemes are generally the easiest to administer and are understood by everyone involved. They are flexible in that different levels of reward can be made depending on the value of the referral being made. These can reflect the amount saved and many organisations will offer a sliding scale. Cash rewards can also be adjusted. For example, if the need to recruit intensifies in a particular area as a result of additional projects and there is an immediate need to find someone, cash rewards can be increased for a given time period. In other words, a special offer for a limited period. While the most popular reward is cash, there are other schemes that can be used, including cars, holidays, and gift incentives. Some clients use a cash-based scheme and then add a prize draw for a holiday of a certain value to all people who make a referral. This allows inclusion for singles, couples and families.

9 How Do You Communicate The ERP To Employees? To pick up on the point we made earlier. The buzz about an ERP must be everywhere, and be effective for diverse audiences. And it needs to be sustained Until you decide on the exact nature of your ERP we cannot make creative recommendations, however there are a number of communications vehicles that can be used. One thing you can do is create a theme for the programme and then be consistent in the execution of that theme across all communications material. This will maximise visibility and recognition. Communications tools include: Promotion on the intranet or employee newsletter/magazine (launch and refreshers) Launch letter from the senior sponsor Payslip stuffer: This could be used as a teaser or as a sticker on the outside of the payslip E card to all staff (launch and refreshers) Posters to be put up in canteen area, can be at launch and used at midpoint and closer to end of the promotion period - stickers can be made to slap on existing posters with revised details Postcard for desk drops Post-it pads can also be customised A Thank You card and for making a referral should be considered ideally with a small reward

10 Your Next Steps Employer Brand Management Services can provide: Bespoke market research on key competitor ERPs (benchmarking) Creative brainstorm to create a unique ERP Development of creative theme on which the program is based Communication strategy for the new ERP Channel plans through which the ERP is run If you should like to progress this, let me know. We would scope the project out with you first in order to provide a quote for the relevant and required stages above.

11 Thank You Chris Miller Lead Consultant, Employer Brand Management Services

12 Examples What would you do with an extra 600? Talent Scout Help us make the connection. Successfully refer someone talented to work here and you ll receive a significant cash reward. You ll also help the business to hire the best people faster and more cost effectively than if we used expensive agencies and headhunters. And by helping us create a world-leading team to drive the right medicines to market as fast as possible, you ll be making a diference to the lives of people all over the world. Refer someone you know to be a Home Energy Consultant We re looking for people who want a rewarding career as a Home Energy Consultant. And as you re Here s how it works: First, visit the Talent Scout site, select your country and click on Refer suits your contact best. Once you ve chosen the position that you want to refer your contact for, you ll need to contact the person and ask them to apply. It s as simple as that. You ll receive a congratulations if your referral ends up being hired. Your reward will be paid automatically through your normal method of payment. Remember making a referral does not mean that your contact has applied to join us. It s a good idea to follow up and remind them. Our business is built on talent. So all AstraZeneca positions, including employee referral programme candidates. And there s no limit to the number of referrals you can make or the rewards you can claim. So why not make the most of it? Visit for eligibility requirements, a step by step guide to the process, and to start referring your talented contacts to AstraZeneca today. your friend starts, and another 300 after they ve been with us for 13 weeks). The more friends you refer, the more money you can make all you need to do is make sure they give us your name and payroll number when they apply at ww w.eon-uk.com/ca reers. Any questions? Just visit the Portal and search for Refer a Friend. talentscoutaz.com eon-uk.com/careers

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