For a Successful Referral Program, Keep Employees in the Loop

For a Successful Referral Program, Keep Employees in the Loop Imagine youre going to work. You walk through the front door of your office building and find yourself surrounded by coworkers you cherish. They work hard, theyre driven, and theyve all been at the firm for several years. Theyre your friends, colleagues, college classmates, and maybe even some relatives.They all have one thing in common They were referred to your company by you.Itsounds like a fantasy,but itsthe basic aimof a solidemployee referral program. Who wouldnt want to workwiththe people they know and love?But more than that, referred candidates also tend to be the best candidates.According to LinkedIn Talent Solutions, Employee referrals produce the highest ROI of any sourcing method. Here are a few stats to illustrate that pointAccording to the saatkorn LinkedIn report, 46 percent of referred hires stay on the job for at least one year. Only 33 percent of career site hires and 22 percentof job board hires stay for that long.Whats more, 45 percent of referred hires stay for at least two years1 in 10 referred candidates are hired, whereas only1 in 100 general applicants are hired.According to Jobvite,67percent ofemployers sayreferrals shorten the hiring process,and 51 percent say sourcing via referral is less expensive.If you want to enjoy all the benefits of referral hires, you must first build an easy-to-navigate employee referral program that works.KeepEveryone in the LoopThe most importantcomponent of a successful referral program is communicating expectations to referrers and referrals alike. Keeping employees and candidates updated on the progress of the search and the status of referrals is vital. If youre not setting the right expectations and communicating critical information, candidates and employees could become disengaged, costing you valuable hires.Expectations and guidelines must be set for the program to succeed, but what those expectations and guidelines are will depend on the needsof your business, your employees, and your candidates.Some questions your referrers need answeredincludeHow quickly will the company respond to my referral?Is there a referral bonus? If so, what criteria must I meet to get the bonus?Howare bonuses paid out?Questions referrals need answeredincludeHow quickly will the company respond to my application?Do I meet the qualifications of the position?Will I get an bewerberinterview?How long will the interview process take?When will I know if I got the job? Will I hear back if I dont get it?To build long-lasting relationships with employees and candidates, communicate important information in a timely manner. Your people and your candidates want answers, so give them what they want It never hurts to be transparent with your workforce (or your potential workforce).Given that referralsonly make up about 15 percent of all hires, you may wonder if building a referral program is worth it. The fact is, refe rrals are 5 times more effective than the average hiring method. Referrals may be asmall group of candidates in the market, but the conversion rate from referral to hire is much higher than for candidates sourced via other methods. In other words, referred candidates have the most potential to make great, long-term employees. Why wouldnt you invest in a strong referral program?A version of this article originally appeared onIQTalent Partners.Chris Murdock is the cofounder and senior partner ofIQTalent Partners.