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Employee Referral Program Roundtable CPHR

Employee Referral Program Roundtable CPHR

I had the opportunity last week to facilitate a roundtable on Employee Referral programs at the BC Certified Professional Human Resources association. 20 HR professionals shared their experiences and interests in starting and running Employee Referrals Program. It  was great to hear the successes and challenges from around the table.
Larger organizations found established referral programs really did work. They reported several benefits, from better hires to an interview ratio of 1:5 vs 1:20. They were also finding safer and more reliable employees that had few accidents and turnover. From their accounts, it was clear that an effective employee referral program is worth implementing.
With the huge cost of hiring and replacing employeesusually well in excess of 15,000 dollars per personemployee referral programs could be the key to lowering costs and increasing productivity. A good thing too, since HR and business leaders have been puzzling for years on how to improve productivity. Combine the raised hiring ratios, safety, and in some studies, productivity, and a well-designed employee referral program can return a significant ROI.
So how to go about setting up an employee referral program? The key is to set up a system that is automated, and integrates with existing HRIS, or Applicant Tracking Systems. Finding a way to efficiently design and distribute rewards will also ensure there is no added administrative burden on HR Programs.

Our next blog will talk about designing rewards that motivate employees but don’t cost an arm and leg, or take a lot of effort to deliver!


Kael Campbell is President and Lead Recruiter of Red Seal Recruiting Solutions, a company providing recruitment services in mining, equipment and plant maintenance, utilities, manufacturing, construction, and transportation. When he is not recruiting, Kael spends as much time as possible with family in the great outdoors and on the water. He volunteers his time as a Board Member of the Entrepreneurs Organization of Victoria and a Member of Victoria Marine Search and Rescue.
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