Employees need to have a certain set of skills, as well as a lot of knowledge in the domain. When hiring new people, you want them to help the company grow as a whole, which is why their skills are so important.
So, if you’re a business manager, you want to know the value employees add to the company when acquiring new skills. You can do that by calculating the rate. Let’s get started about the rate of internal referral hires.
What is it?
Basically, employee referrals are recruiting strategies, and they are considered one of the most productive of them. Research shows that referred employees are the best employees in several ways. They don’t take long to hire, are not expensive, have the lowest turnover rate and stay the longest with companies.
There’s an employee referral program that is organized and structured in such a way that existing employees are asked to recommend applicants for open positions. It is a method to hire candidates with the best skills in order to help the company grow.
The Internal Referral Hires Rate helps managers see the value that is added to the company when existing employees help identify talents.
How is it Helpful?
When hiring candidates, finding the talents and skills of potential employees is probably one of the biggest challenges. So, employee referrals are one of the main sources for finding high-quality job candidates. Even companies that don’t use this method want to implement it, because it may help them in the long run.
As mentioned, referrals are an internal method that helps you find better job candidates. Therefore, already existing employees are asked to refer a candidate for a certain position. This means that employees already know who the best candidate out there is, and who may bring the most benefits to the company. This is helpful because employee referrals usually make a better match compared to candidates coming from other sources.
In addition, because these candidates are a better match from the start, they stay the longest with companies as well. If they match norms, organizational culture and values better, they will also stay longer with the company. This has a great impact on the employee turnover rate metric.
Moreover, it is shown by statistics that employees who have referred a candidate for an open position will stay longer with the company than those that haven’t. If employees refer successfully, they feel the achievement, like they’ve done something good for you and the company. They are also usually more engaged than other employees.
Final Thoughts
When hiring new people for your firm, it’s essential to know how their knowledge, skills, and talents are going to help you. The rate of internal referral hires can help you determine that because it estimates how much value is added to your business through the method. So, you will know whether your company is going to thrive or not. If you haven’t already, you should consider the employee referrals and using this rate as a way to grow your company.