Over the last decade, there has been a remarkable transformation in the job market making it increasingly difficult to recruit and retain top talent. Organizations are now employing innovative strategies to confront these new challenges. Employee Referral Programs (ERPs) are particularly effective at driving a recruitment process that is both robust and cost effective.

$11 billion is lost annually due to employee turnover
~StackHands

This creative approach to talent acquisition is the best way to avoid the huge costs of poor hiring practices. If you want to build a powerful recruiting machine, you may want to consider these five steps.

1. Recognize the Power of Your Employees

Employee Referral Programs have the power to positively impact the organization in a number of ways.

Lower cost per hire- Traditional recruitment methods are not only ineffective at attracting the best talent but can cost your business some serious dough. ERPs are the most cost effective way of sourcing, engaging and hiring employees. You also get the added benefit of quality hires as employees refer others with similar competencies and interests.

Higher employee retention and workplace productivity- When employees are operating within a framework where there are strong personal and professional relationships, they are more likely to stay and perform well.

2. Incentivise and Motivate Employees

It is essential that employees are recognized for their contribution to the company’s success. When employees are rewarded for their engagement, it creates a sustainable environment which translates to even more value and tangible results.

Gratitude can be expressed both internally and externally. Internal motivation can take the form of providing opportunities for mobility within the organization, fuelling purpose, strengthening culture, and engendering learning and development. Externally, employees can be incentivized with travel, gifts, cash bonuses, discounts, and other rewards.

3. Conflict Resolution

As is the case in any situation where human interaction is involved, there will be errors and conflicts that need to be resolved amicably. A plan or policy needs to be put in place from the beginning in the eventuality of conflict so that the effectiveness of the referral program is not undermined.

There could be a case where more than one employee refers the same candidate which poses problems if there’s a reward system in place. Referrals of family members is another common conflict. Some organization may restrict family referrals altogether or provide guidelines for employees who refer family members.

70% of Forbes global 2000 companies will use Gamification to boost engagement, retention, and revenues - Forbes

4. Amp up your ERP with optimization

Like most effective recruitment strategies, ERP’s need to be approached with a 21st-century sensibility. What this means is, steps need to be taken to align recruitment with the company’s marketing function.

Recruitment marketing involves using automation, metrics, and other data science technology to strengthen your talent acquisition efforts. Essentially, it takes a traditionally HR-centric function and empowers it with the fervor of marketing-based tactics.

Optimization also includes having a system that is flexible. It is imperative that your referral program is always given a fresh spin with new and innovative ways to not only motivate employees but to monitor your return on investment.

Recommended Optimization Tool: SocialHP

5. Leverage Social Media

Employee advocacy programs are particularly effective at leveraging employees’ vast social networks. Similarly, ERPs need to make room for social engagement in order to build a recruitment strategy that is truly competitive.

Job boards and employee agencies simply don’t do talent acquisition justice anymore. Web-based technologies like social media are vital tools for brand outreach and engagement. A report by Careerify revealed that the average employee has 316 connections. Can you imagine the number of quality leads that an organization can get from just 100 employees?

Leading organizations have already began to tap into their most valuable resource by engaging employees in their recruitment efforts. It is clear that the time to revolutionize and strengthen your recruitment strategy with an optimized Employee Referral Program is right now.

Recommended Reading: Is An Employee Advocacy Program More Powerful Than a Fan Page?

Your company culture is a major recruiting asset. Your employees are the the most trusted ambassadors of what that culture looks like. he time to empower your employees to participate in the recruitment process is now. Make sure your office culture is reflected in the recruiting process from the get-go and make sure your employees are involved in the recruitment process from day one!