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The Power of Referrals

Referrals- Woman introducing a man to another woman.

Have you ever referred a colleague or friend to a new career? Or have you ever referred a fellow company to work with That’s Good HR? Our team works with referrals from several different vantage points, and we find that these referrals are a major factor in successful matches for clients and candidates alike. As we explore the power of referrals, consider whether you have a professional connection who could benefit from a referral to That’s Good HR. 

Why are referrals important?

Did you know that many employers prefer working with candidates who have been referred? According to the Society for Human Resource Management (SHRM), about 28-30% of new hires have come from employee referrals over the past 10 years. And in companies where HR/recruiters place a greater emphasis on referrals through incentives or another similar program, that number can grow to even 35-45%. A 2016 study in the “Journal of Labor Economics” also showed that “referred candidates are more likely to be hired” and that “employee referrals are associated with significantly stronger tenure.” 

How can referral programs save money?

Referral programs, including those with an incentive bonus, can be a hugely cost-effective way to reach a larger pool of job seekers for your open positions. When current employees refer their industry peers to your organization, those candidates are often proven to be a good fit for your company’s culture and could even require less onboarding and training upon hiring. A 2015 study from “The Quarterly Journal of Economics” even found that in some fields, referred workers may also have superior performance and productivity over non-referrals (though this was not found to be consistent across every metric).

As the SHRM article explains, “Employee referral programs essentially turn all employees into recruiters.” Your current team is likely connected to a number of highly-qualified professionals and former coworkers, who may not consider themselves in the market for a new job. But when they are referred and actively sought out by someone they hold in high esteem (and that person’s employer) they may be more likely to consider the opportunity. 

How does the TGHR candidate referral program work?

We also find that some of our best candidates have been referred by previous candidates. If someone would like to be a part of our referral reward program, they simply need to complete our online form with the referral’s name and phone number (and their contact information) so that we can reach out to them and learn more about their skill set. If we find a good placement for them, then the referrer will receive a $200 bonus once the referral has worked 40 hours! In addition to this candidate program, we also accept referrals from clients for new and existing organizations who find themselves in need of staffing support.

What happens after someone is referred to TGHR?

When we receive a candidate referral from an employee we have previously or are currently working with, we connect with the job seeker to identify their skill set and unique talents. We harness the power of referrals to meet our client’s specific staffing needs by finding a mutually beneficial match for every open position. We don’t just send candidates to our client companies, we invest time and consideration into finding the best person to join your team. It matters to us because it matters to you.

Are you ready to find the best fit for your staffing needs? Would you like to refer another organization or a potential candidate to That’s Good HR? Reach out today so that we can connect with you!

We’d love to help you. Give us a call. 317.469.4141