Turning your staff into recruiters

Turning your staff into recruiters

An innovative and cost effective way of finding talent is to turn to your own staff and utilize them as a resource. Some companies are paying their staff well for referrals and this method of attraction is proving to be highly successful.

Candidates that have been referred by a staff member generally outperform those recruited in the conventional way. These people know more about the company culture , feel a lot more comfortable and know what working there is like.

The practice of employee referrals appears to be more common in the US than in Europe. At Ernst & Young in the UK, 18 per cent of new employees are referrals; in the US, the figure is 50 per cent. The accountancy firm says the reason is that, like many US organisations, it relies heavily on its alumni association for recruitment. In the UK, by contrast, the first port of call is often a recruitment agency or graduate scheme.
Relying entirely on referral is dangerous , however, and could lead to a lack of diversity in a company. Others argue that an incentive scheme should not be necessary as a company should be an employer of choice and staff should be proud to refer their company to friends and family.

Referral schemes have obvious advantages and some disadvantages and best utilized in a balanced way as a part of a recruitment drive.