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What’s Missing From Your Hiring Program?

July 26, 2013 Leave a comment

Economically, the United States has been recovering slowly from the long recession. Unemployment rates drop nationwide as new jobs come available. According to USA Today’s Paul Davidson, the housing market fares best overall with auto sales close behind and growth in manufacturing in spite of heavy storms that hit the Mid-West slowing the lumber industry. The fed reports growth of approximately 200,000 jobs a month so far this year.

The economy appears stable and employers are hiring at a faster pace. The pool of experience is deep, but with more jobs opening, it is time to secure the best team possible. Creating a cohesive, focused work environment is important and the trend for achieving the desired workforce is employee referral programs.

Employee referrals are vital

Employee referrals make up the largest source of new hires on the market today because referrals are:

  • Less expensive than other sources
  • Higher new-hire retention rate
  • Incentives to the referrer
  • Fits into the company cultural

The trick is getting the employees engaged and active in the new technologies available for referral programs.

The advantages of social websites

Social websites, like Facebook, are great resources to use for networking. Over 80-percent of the population use social websites to keep in touch with friends and family. They also use the internet when job hunting. Combining the two activities is a natural progression. Facebook can help get the most qualified applicant to take the next step toward employment with;

  • Videos highlighting company culture
  • Testimonials from employees
  • Company insurance plans and other benefits
  • The potential for growth within the company

Networking finds the best candidates, quickly. A job alert sent to employees involved in the employee referral program quickly nets text messages to people they know who need jobs. In an instant, word of the opening spreads to a large pool of qualified candidates. Multiplying this response by the number of social and job search websites available, the employee pool deepens immensely.

To sort through the pool, applicant tracking software comes into play to make the search less daunting. The software scans resumes and keeps those matching the position. It posts jobs on predetermined websites and job boards. The software also generates personality questions to narrow the field even more.

For specific qualifications, keyword searches will find friends and acquaintances with specialized skills the organization needs. The speed in which qualified candidates receive news of the job opening depends only on the speed of the network the cell phone uses.

Cell phones and tablets

Cell phone usage continues to rise nationwide and the trend will continue into the unforeseen future. All the major social networks have applications available to make networking possible on cell phones and tablets. Employees involved in the networking program will reach acquaintances spanning websites like: 

  • Facebook
  • Twitter
  • My Space
  • LinkedIn
  • CareerBuilder.com

Employees offered a referral bonus look deeper into their network to find the person best suited to the job. When employers pay $2000 and more to employees who refer the best job candidates, only the most qualified applicants get the job alert.

Technology like an ATS or employee referral program offers many resources for finding and hiring the people who fit the jobs best. Using all the available networking tools and media outlets gives a measurable advantage to those who use them.

Modernize Your Employee Referral Program

July 12, 2013 Leave a comment

An employee referral program is one of the best things for you and for your employees. It allows you to get qualified resumes for open positions and it allows your employees to receive a bonus each time they send a referral your way that you ultimately hire. Before you build any referral program, make sure it is built for modern times.

According to the New York Times, more businesses are relying on internal referrals when it comes to hiring. Especially when it comes to key positions, employers would rather hire someone based upon a current employee’s recommendation than going with a gut instinct on a stranger.

Those who enter a business through a referral are more likely to get preferential hiring treatment, too. When companies get thousands of resumes for an open position and then one comes from a quality employee, that resume is usually placed directly on top and holds a little more weight. This is why employees are willing to refer friends – they know their friends stand a good chance of being hired – which give them the incentive that you are offering.

So how do you notify employees that you need referrals? You cannot make it too complicated. While everyone wants the referral bonus that you are offering, no one wants to work too hard to get it. If you use modern technology in conjunction with your employee referral program, it will save you a considerable amount of money and save your employees time.

There are many ways to modernize your employee referral program. The first is to stop relying on a handwritten line on an application for “referred by” because it’s nearly impossible to track. Instead, rely on a software program that will do all of the tracking for you. By doing this, you can even update employees as to where their referrals are in the system, being able to tell them whether they qualify for the referral bonus and when they can expect to see it.

Additionally, keep in mind that many of your employees are on social media. They may have hundreds of connections – and many of these connections may be within the same industry as your employee. This means that you want to be able to tap into the connections of your employees. How can you do this? Enable social media platforms within your referral program. This will allow employees to “post” job openings on their Facebook. When that link is followed, it gives credit where it’s due.

Modern technology has made your life easier in many ways. You don’t have to manually calculate payroll. You don’t have to thumb through paper HR folders. You also don’t have to spend a significant amount of time with employee referral programs. Referral and applicant tracking systems are designed to make it easier.