March 20, 2022

What Are Employee Referral Programs?

When you're searching for a new job, a referral from someone who already works at a company can get your resume a closer look, and may even help you get an interview. For employers, a referral program can be a way to source candidates who come recommended by a current employee. It's a winning situation for all the parties that are involved.

What Are Employee Referral Programs?

Employee referral programs are formal programs employers have instituted to encourage employees to refer candidates for jobs at the company. This is done with the hopes that they'll already be a good fit and save time vetting candidates. Not all employers use employee referral programs, but many large organizations do. For example, 91% of Fortune 500 companies use this method as a way to find and hire new talent.

Benefits for Employers

A referral program is a way to help ensure the company is recruiting top talent for available positions. The assumption is that current employees are uniquely qualified to identify the best candidates since they know the organization's mission and company culture. Employees may have friends or colleagues they know to be talented and who would fit perfectly into that culture.

A survey from ERIN reports over 80% of employers rated employee referrals as the best source for generating a return on investment. Referred candidates are four times more likely to be hired, and 45% stay with an employer for longer than four years, compared to candidates hired from a job board.

Benefits for Employees

Employees who refer successful applicants can earn cash bonuses, prizes, points that can be used for prizes, extra time-off from work, gift certificates, or other rewards. For cash bonuses, ERIN reports that the average bonus is $2500.

Benefits for Job Applicants

A referral goes a long way in a candidates application. The people on the front line are your best bet for getting interviews. A good referral will have a recruiter realize you have someone in their network willing to advocate for you, and give greater consideration to your application.

How can you get referred?

ReferMarket was built to help anyone and everyone get referred to any and every company they want., They've succesfully helped candidates land jobs at Google, Netflix, Salesforce and more. Try the platform today to land your dream job.