Democratizing Employee Recruitment and Referrals
Fostering a recruiting culture that is marked by democracy and reap the rewards.
In 2018 the business environment has become increasingly high risk. This risk extends to recruitment, with a more informed and qualified talent pool it creates a different set of challenges for Talent Acquisition officers.
When it comes to enticing superior talent and retaining the outstanding performers in an organization, fostering a recruiting culture that is marked by democracy is critical. The democracy of recruitment entails an employee referral system, autonomy in the hiring process, as well as internal mobility.
Democracy in the recruitment process can have several benefits to an organization.
Maintaining an employee referral program can become chaotic without easy automation. That’s why 75 percent of organizations use employee referral program systems that allow for automated or semi-automated processes.
1. Higher Employee Retention Rates
Employees gained by an employee referral program are proven to have greater company morale and job satisfaction. As a result, referred hires remain at the company for much longer. This report reveals that referred workers have a 23% less likelihood to quit their jobs. Workers are also 16-30% less likely to quit after making a referral. It is clear that a democratized talent acquisition process is highly effective in not only engaging new hire but retaining to performers.
2. Better Job Performance
When an organization is founded on a well-informed, engaged, and talented human resource core, social democracy of recruitment has even greater implications for the business’ ROI and general performance. A study by Careerify proves a direct correlation between referred employees and superior performance based on high-impact metrics such as innovation and workplace safety. Referral programs also resulted in significantly higher profits per worker.
Recommended Read: How to Activate Your Global Talent Acquisition Social Media Plan
3. Stronger Employer Branding
A democratized recruitment strategy which utilizes employee referral programs and fosters internal mobility is indicative of a workforce that is highly engaged. It is no secret among top organisations that greater employee engagement and advocacy can substantially fuel an organizations employer brand. In a head-to-head battle among top performing business, no doubt, those with a powerful employer brand will emerge victorious.
How do engaged staff and a strong employer brand help a business’ bottom line?
It Strengthens Company Culture – The ability of the internal climate of your business to influence top talent from outside should not be underestimated. When a business includes its staff in the recruitment process through employee referrals, it is not only driving awareness to the business’ brand voice, but is simultaneously enforcing the company’s culture.
The stronger your company culture, the greater your ability to influence and retain the creme of the talent crop. The popularity of communities like Indeed and Glassdoor prove that culture is one of the primary metrics used by candidates to determine the best organization to take their talents to. This article reveals that 48 % of job seekers reported that reviews posted on Glassdoor have the most impact on their perception of an employer brand.
It Results In Lower Cost Per Hire – The new trends in talent acquisition alert businesses to identify and capitalise on the recruitment practices that have the highest impact. The cost per hire metric is where you can really see how a democratized recruitment strategy can impact your ROI and company performance.
An employer brand function that is performing at its best will significantly expand your ability for quality hires at a lower cost. Would you pay astronomical prices just to sift through and hire mediocre candidates or would you rather attract and sort through a large pool of gifted candidates? The brand exposure from engaged employees has great implication for attracting strong talent without the extra administrative and talent acquisition costs.
A strong employer reputation can woo passive candidates: 84% of survey participants would consider leaving their current company if another company with an excellent reputation offered them a job – Glassdoor
Are you leveraging your company’s culture and employer brand to attract the best talent? Is your current workforce engaged in the recruitment process? This is what social democracy of recruitment is all about- allowing your employees to make a strong statement for your brand by utilizing an employee referral program as well as fostering internal mobility.