11 Employee Referral Program (ERP) Tips for Success

by | Nov 1, 2022 | Social Media Strategy

Most people would agree that employee referral programs (ERP) are one of the best sources for finding quality hires. After all, who knows better than employees what it takes to be successful in a company? And when you have a well-run ERP program, you can save time and money while improving your chances of finding the right person for the job. But to get the most out of your ERP program, you need to make sure that you’re doing things right. Here are eleven tips for making sure that your ERP program is successful.

What is an Employee Referral Program (ERP)?

       

Employee referral programs (ERP) are a process by which employees recommend potential hires to their company. Referred employees are often better suited for the job and more likely to be successful than those who are hired through other methods, such as online applications or job boards.

Benefits of ERP

There are many benefits to using an ERP program. Some of them are these:

  • The Best source of quality hires.
  • ERP can save you time and money.
  • Improved chances of finding the right person for the job.

The best source of quality hires

When done right, an ERP program can be the best source of quality hires. This is because employees know better than anyone else what it takes to be successful in a company. They also have a personal relationship with the candidates they refer, which makes it more likely that the candidates will be a good fit for the job.

ERP can save you time and money

An ERP program can also save you time and money. This is because you won’t have to spend as much time advertising the job or screening candidates. And, when you do interview candidates, you’ll already know that they’re interested in the job and qualified for it.

Improved chances of finding the right person for the job

Another benefit of an ERP program is that it can improve your chances of finding the right person for the job. This is because employees are more likely to refer someone they know is a good fit for the position. And, when you interview candidates referred by employees, you can ask them specific questions about the job and their qualifications.

How Does an Employee Referral Program (ERP) Work?

In order to take advantage of your company’s employee referral program, you need to know how it works. Typically, the process goes something like this:

  • Employees recommend potential hires to their company.
  • The company screens and interviews the candidates referred by employees.
  • If a candidate is hired, the employee who referred him or she receives a bonus.
  • Motivate your employees to refer their friends and colleagues

11 Tips Successful Employee Referral Program

If you want your ERP program to be successful, you need to motivate your employees to refer their friends and colleagues. There are many ways to do this, but some of the most effective are these:

  1. Offer a monetary bonus.
  2. Give employees an extra day off.
  3. Publicly recognize employees who refer successful candidates.
  4. Make it easy for employees to refer candidates.
  5. Provide a list of open positions.
  6. Keep employees updated on the status of referred candidates.
  7. Let employees know when a referred candidate is hired.
  8. Give employees the opportunity to interview referred candidates.
  9. Ask employees for feedback on the candidates they prefer.
  10. Encourage employees to refer candidates from underrepresented groups.
  11. Reward employees who refer a diverse group of candidates.

  1. Offer a monetary bonus

One of the best ways to motivate employees to refer candidates is to offer a monetary bonus. This way, employees will be financially motivated to refer their friends and colleagues. The amount of the bonus will vary depending on the company, but it should be enough to make referrals worth the employees’ time.

  1. Give employees an extra day off

Another way to motivate employees to refer candidates is to give them an extra day off. This will show employees that you value their input and appreciate their help in finding qualified candidates.

  1. Publicly recognize employees who refer successful candidates

Another way to motivate employees to refer candidates is to publicly recognize employees who refer successful candidates. This can be done through a variety of

  1. Make it easy for employees to refer candidates

If you want your employees to refer candidates, you need to make it easy for them to do so. This will help employees to refer candidates more confidently if they find it easy to refer.

  1. Provide a list of open positions

 

Another way to make it easy for employees to refer candidates is to provide them with a list of open positions. This will give them a clear idea of the types of candidates you’re looking for and help them to identify potential referrals.

  1. Keep employees updated on the status of referred candidates

Once you’ve received a referral from an employee, it’s important to keep them updated on the status of the candidate. This will show employees that you’re taking their referrals seriously and help to build trust.

  1. Let employees know when a referred candidate is hired

 

When a referred candidate is hired, let the employee who referred him or her know. This will show employees that their referrals are valuable and appreciated.

  1. Give employees the opportunity to interview referred candidates

Another way to involve employees in the referral process is to give them the opportunity to interview referred candidates. This can help to ensure that referred candidates are a good fit for the position and the company.

  1. Ask employees for feedback on the candidates they refer

 

After employees have referred candidates, ask for their feedback on the candidates. This will help you to improve your screening process and make sure that you’re hiring the best possible candidates.

  1. Encourage employees to refer candidates from underrepresented groups

In order to build a diverse workforce, it’s important to encourage employees to refer candidates from underrepresented groups. This will help to ensure that your company is an inclusive environment for all.

  1. Reward employees who refer a diverse group of candidates

In addition to encouraging employees to refer diverse candidates, you should also reward them when they do. This will show employees that you value diversity and are committed to hiring a workforce that reflects the communities you serve.

Screen and interview candidates referred by employees carefully (Bonus Tip)

 

When you’re screening and interviewing candidates referred by employees, it’s important to be careful. This is because you need to maintain the high standards of your company. You should ask candidates referred by employees the same questions that you would ask any other candidate. And you should take the time to carefully review their qualifications.

Mistakes to Avoid When Running an ERP

When running an Employee Referral Program (ERP), it’s important to avoid making certain mistakes. Here are a few of the most common mistakes:

  • Failing to motivate employees
  • Failing to screen and interview candidates referred by employees carefully
  • Not asking employees for feedback on the candidates they refer
  • Not being careful when screening and interviewing candidates referred by employees

Failing to motivate employees

 

The first and perhaps most important mistake to avoid when running an ERP is failing to motivate employees. If employees aren’t motivated to refer their friends and colleagues, your program won’t be successful. There are a number of ways to motivate employees, including offering cash bonuses, paid time off, or other rewards.

Failing to screen and interview candidates referred by employees carefully

Another mistake to avoid is failing to screen and interview candidates referred by employees carefully. Just because an employee recommends, a candidate doesn’t mean that the candidate is automatically qualified for the position. It’s important to screen and interview candidates referred by employees just as carefully as any other candidates.

Not asking employees for feedback on the candidates they refer

 

Another mistake to avoid is not asking employees for feedback on the candidates they prefer. It’s important to get feedback from employees on the candidates they refer in order to improve your screening and interviewing process.

Not being careful when screening and interviewing candidates referred by employees

Finally, it’s important to be careful when screening and interviewing candidates referred by employees. Just because a candidate is referred by an employee doesn’t mean that the candidate should be given special treatment. Screen and interview candidates referred by employees just as carefully as any other candidates.

By avoiding these mistakes, you can run a successful ERP program that produces quality hires.

Secret Sauce for Guaranteed Employee Referral ERP Results

There’s a magic formula for guaranteed employee referral results. The secret sauce is simple:

  • Automation and Metrics
  • Freshness Factors
  • Double Agent: Recruiter and…Marketer?
  • Fast Shipping on Incentives
  • Split Rewards into Phases

Automation and Metrics

 

First, you need to automate your ERP program. This will help to keep track of referrals and ensure that employees are motivated to refer their friends and colleagues. Second, you need to track metrics. This will help you to identify what’s working and what’s not.

Freshness Factors

It’s also important to keep your ERP program fresh. This means regularly assessing your program and making changes as needed. One way to keep your program fresh is to offer new incentives to employees.

Double Agent: Recruiter and…Marketer?

Another way to keep your program fresh is to make sure that your recruiters are also good marketers. This means that they should be able to sell your company to potential candidates.

Fast Shipping on Incentives

Finally, you need to make sure that you’re shipping incentives fast. This will help to ensure that employees are motivated to refer their friends and colleagues.

Split Rewards into Phases

 

In order to keep your program fresh, you should also consider splitting rewards into phases. This means that employees will be rewarded for each stage of the referral process, from making the referral to seeing the candidate hired.

By following these tips, you can produce guaranteed employee referral results.

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