thoughts on setting up an employee referral scheme

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I wanted to put down some thoughts about employee referrals as there doesn’t seem to be a lot of information or help out there for businesses. Probably because it erodes the revenues of recruitment companies and the agencies charge a fortune to put something in place. Well, nuts to that. If it’s worth knowing, it’s worth sharing…

And look, of course, we want you to use our online flat fee recruitment service, that’s why we’re here. But let’s all try and shake up the prehistoric recruitment model and help each other become better at recruitment.
We know that sometimes the best person is the friend of the friend already working for you. You just need to make sure you are getting the message out to that you are hiring effectively to your cheerleaders.
My thoughts here should be seen as a basic structure and you can always ask call me for more advice if you need it.

Before you put any referral schemes in place consider the five key elements:
1. What type of people are your schemes aimed at?
2. Is there are defined timescale for the schemes?
3. What sort of bonus should the hires reflect?
4. How do the schemes fit with the culture of your company?
5. How will you promote your schemes?

So Rule Number 1. Plan, plan, plan is the name of the game. The more you put in, the more you put out.
Rule Number 2. Create an employee focus group, ask your key stakeholders what would incentivise them to refer people. Empower ownership from day 1.

How best to promote, what schemes would be best, are league table relevant, that sort of thing.
Remember that everyone is motivated differently, mix up the schemes and what people can get out of them.

Have fun with the process.

Rule Number 3. Give the scheme an identity, a name and maybe even a logo. Make it stand out, make everyone know what they are talking about.

Establish timeframes and cut off points.

Be clear with the message and incentives

Rule Number 4. Promote Promote Promote You can offer your employees amazing incentives but if they don’t know your referral scheme exists you won’t get any referrals. Pretty obvious, really…
1. Cleary explain the schemes with everyone in companywide of team meetings. Keep the schemes on the agendas.
2. Use email, work notice boards, newsletters, whatever it takes to keep everyone informed
3. Inform every new employee the scheme exists when they start working for your organisation
4. Even at interview stage, let your candidates know about the scheme
5. If you use them, send out the details of the scheme with employee payslips (this is a great medium with sales people!)

Rule Number 5. Embrace and use relevant social media networks. I may make this a seperate post, as this could be such a big topic because social media sites are perfectly designed for you to promote a referral scheme.

Take advantage of the fact that many of your employees will already be using them and it is direct. USE SOCIAL MEDIA!

Not only should you encourage your guys to use their own LinkedIn, Twitter and Facebook network to promote the jobs and scheme you should at the very least…

1. Create a Referral Scheme Page on your Company page on Facebook and LinkedIn.
The page should have:
a. Details of the incentives offered for successful referrals
b. Information on all the jobs that you are trying to fill.
c. Details of all the methods staff can refer people .
e.g. email, phone, facebook application form etc.
d. Clear and eye catching imagery to get everyone engaged
e.g. images and video.
2. Regularly tweet about your scheme on Twitter making sure you engage with your network.

Rule Number 6. Keep your career page up to date – Again, I may expand on this later as this is a massive subject. Suffice to say, make sure that your career site (or work for us page) reflects the fact that you are hiring and is as clear as possible as to your recruitment process.

Rule Number 7. Always respond to every referral – you should ALWAYS respond to every applicant, but even more so when it is a friend of an employee!

Final Rule. Measure & Review - the only way you’ll know if your referral scheme has been a success is if you can measure all the referrals you receive. Simple.
1. Add all referred candidates to your applicant tracking system, even if it is just an excel spreadsheet. Even if they aren’t suitable for the role you’re recruiting for now, who knows, they could be perfect for a job you want to fill later on. Your candidates are your clients
2. Keep a referral database with a record of every referral made and who made the referral. This will be useful when you want to find out who to reward for the most successful referrals.
3. Measure which methods work and increase that exposure. If you find a lot of people through, say, Facebook, maybe try some focused Facebook advertising next time round?

I hope this has been useful. I think the key message is to give it a go and have a bit of fun with the format. I would love to hear about other ideas and schemes , though, so please get involved or get in contact.

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6 Comments

  1. Posted September 5, 2009 at 10:41 pm | Permalink

    Hey good stuff…keep up the good work! :)

  2. Posted September 8, 2009 at 1:04 am | Permalink

    This site rocks!

  3. Posted September 19, 2009 at 7:01 am | Permalink

    Nice content indeed! i will visit as often as i can.

    cheers

  4. Posted September 30, 2009 at 8:07 am | Permalink

    There’s good info here. I did a search on the topic and found most people will agree with your blog. Keep up the good work mate!

  5. Posted September 30, 2009 at 10:12 am | Permalink

    I usually don’t post on Blogs but ya forced me to, great info.. excellent! … I’ll add a backlink and bookmark your site.

  6. Posted September 30, 2009 at 11:13 am | Permalink

    Hey, I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say GREAT blog!…..I”ll be checking in on a regularly now….Keep up the good work! :)

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