Employee referrals are a sign you have a great employer brand
Referrals are valuable. If you’re receiving lots of them at your workplace, it clearly indicates that you’re doing something right. If you’re not, it could be a sign you need to work on your employee value proposition (EVP) and build a stronger employer brand.
Your employees are your brand ambassadors. What people say about your organisation matters. This can impact your reputation and influence your employer brand. If new talent approaches your organisation due to a referral, they already have a positive perception of your employer brand, which means you’re halfway towards engaging them in your business. Really, a referral is a compliment!
If you’re getting a decent amount of referrals, this is what it means.
You have a good reputation
At Heart Talent, we believe recruitment is marketing. Jobs are products, and talent are consumers. Studies show that 93% of consumers typically research or check reviews before committing to buying a product. It’s the same for job seekers. An incredible 86% of job seekers research profiles, reviews and ratings before deciding whether to apply for a job at an organisation.
People who have approached your organisation about a job have already made that decision. They already know that they like the sound of you. But up until now, their actions have been based solely on your reputation and the perception gained from the person who referred them.
You are providing a positive work culture
If your employees enthusiastically refer others to join your organisation, it demonstrates strong engagement with your employer brand and endorses your organisation’s culture. It shows that your people enjoy working for you and want others to join them. They care about your brand enough that they’ll take the time and effort to refer someone.
You have gained the trust of your employees
If an employee refers your organisation, they are putting their name on the line. They trust that if the person they refer joins the organisation, they’ll enjoy it as much as they do and feel they made the right decision.
You are attracting like-minded people
Referrals are a good tool for attracting like-minded people who align with your organisation’s values. They will likely have a similar mindset and work ethic as the referring employee. The referrer is also a testament to the fact that this potential employee would be a good fit for the organisation.
How much of an impact does a referral program have, and do you need one?
At Heart Talent, 90% of our new business comes from word of mouth. This mostly happens organically. However, some organisations choose to use referral programs, where employees are rewarded for referring new talent.
Despite the benefit of referrals, this is just one way of engaging and attracting talent. For the best chance of finding the best talent for your organisation, you need to cast the net wide and reach a large audience. A referral is just one source, providing one person. A talent specialist uses multiple channels and can put forward 100 of the best.
It is also critical that there is no bias within the recruitment process. Using a talent specialist means that all applicants go through the same robust process for the fairest outcome. It ensures the decision is evidence and merit-based.
Final thoughts
Employee referrals provide a powerful testament to your employer brand. They highlight employee satisfaction, a strong company culture and an engaged workforce. Employers who prioritise creating a positive work environment and cultivating strong relationships with their employees are more likely to engage and attract talent.
Referrals are a good reminder of how important it is to make sure that every interaction, whether direct or indirect, conveys the right message about how you operate. It must be a reflection of what makes your organisation a great place to work.
Looking for more insights about talent attraction and engagement? Check out our employer resources.