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Top 10 Reasons to build an effective Employee Referral Program

The benefits of a well designed and executed employee referral program are innumerable, with some directly measurable benefits and many indirect benefits relating to better employee engagement and morale as well as higher retention rate.

Here are 10 top benefits of a robust employee referral program which might help organizations provide more support and impetus to their referral program.

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High Quality Candidates The





employing a referral program is that organizations get access to a pipeline of high quality candidates resulting in better quality of hiring and in turn a more productive workforce.

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Higher interview to hiring ratio A higher interview to hiring ratio is

possible as employees act as partners in the process. Since they are in the best position to sell the job and company to the candidate and




queries, the conversion ratio is much higher.

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Lower Cost per Hire A very big benefit that directly impacts the bottom line of organizations is that the cost of hiring through referral is significantly lower compared to other traditional sources of hiring like external agencies and job advertisements.

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Culture Fit Since referred candidates are mentored by the referring employees, they are able to assimilate






organization faster and better. This leads to more productive employees

who stay engaged with the organization much longer bringing down employee turnover and by extension reducing the burden on the recruiting team.

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Global Reach A big advantage of a referral program is that it can be administered at a global level enabling organizations to maintain a global database of high quality talent. Incorporate social media in your employee referral program to maximize your reach.

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Recruiting made easier A well run employee referral program increases the efficiency of the HR and recruiting team.

Since employees are made partners in the process of hiring, the burden of sourcing and hiring gets shared among many leading to higher and faster closure rate.

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Employer Branding A robust employee referral program can go a long way in building and promoting your employer brand within the talent

community. As employees act as brand ambassadors promoting the company and the job, they indirectly help to create a positive brand image for the company.

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Candidate Pipeline building A major indirect benefits of a well run

employee referral program is that it helps to build a pipeline of quality candidates who






requirement. These referred candidates constitute a valuable pipeline available for immediate capitalization for future openings.

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Employee Engagement Referral programs constitute a powerful

engagement tool as it empowers employees to participate in the process of building the organization with high quality talent. A well communicated and implemented employee referral program helps to keep employees motivated and engaged with the organization leading to a positive and enabling work culture.

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Improved ROI A robust employee referral program helps an organization realize better ROI on its investment both in terms of lower cost of hiring, faster filling of open positions as well as higher productivity of referred employees.

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Hope these reasons clearly highlight the benefit of employee referral programs in organizations. If you need any help in setting up your employee referral program,

ZALP is just a click away


You may also opt for a free consultation on improving your referral program results. Our employee referral specialists would be glad to help.

The Employee Referral Booster

For more information, visit

To book a consultation appointment, drop a mail to

You may also call us for any other assistance

1-866-217- 1267

Top 10 Reasons to build an effective Employee Referral Program: Zalp  
Top 10 Reasons to build an effective Employee Referral Program: Zalp  

A well-structured Employee Referral Program is one of the best ways to generate new hires and helps increase retention, lower costs, boost m...