Why You Should Create an Employee Referral Program – StartUp Mindset

Over 50% of small business owners say it’s harder to find qualified workers, and many are getting desperate.  Classic ways of finding employees like hiring fairs and site listings aren’t working anymore: so how are companies supposed to find workers who can do what they need to be capable of?

These are the top reasons you should create an employee referral program to ensure you get the cream of the crop. 

Keep The Employees You Have

Employees who know that they’ll get bonuses if they stay and get others hired are more likely to stay.  These programs encourage them to stay with the company: especially if you hire someone they refer. Having someone they know work with them and knowing that if they remain the three months, they’ll get a bonus is enough to ensure they don’t start looking for work with other companies.

People Are Picky When It Reflects On Them

Employees want to look good to the company and their coworkers, so they’re more likely to be careful when making an employee referral.  This ensures that those they refer and say should work with the company are people that have the skills and abilities necessary to succeed and make both the referrer and the company look good.

On top of this, if they know someone won’t last the grace period, they’ll be less likely to refer or say that this is someone the company should hire.

The Three Month Period Will Encourage People to Stay

Most companies require a three-month grace period before they’ll reward whoever made the referral.  This means you’ll be sure to find employees who are more likely to stay for the long haul.  Over a third of new hires quit before the three-month mark, so it’s good to have the chance to weed those out and avoid rewarding anyone for someone who might stop.  

Whoever referred them will want this employee to stay to get their bonus, so there will be pressure to become part of the company and stay with it.

Better Chance at Employees Getting Along

If employees know each other outside of work and are friendly enough to get them hired within the company, there’s a better chance of this new employee sticking and doing well within the company. When employees have people they’re friendly with and enjoy spending time with; they’re far more likely to want to stay because they’ll feel like they’re on a team or working with family.

Fantastic Way To Show Trust In Employees

Hiring people employees tell you to hire is an awesome way to show that you have faith in your workers.  This gives them the feeling that you understand and respect their opinions and that you’re willing to let your company be affected by these decisions.

Of course, you shouldn’t just hire everyone someone brings up to prove that point, but you should interview and talk to these people.  If someone doesn’t fit the company, speak to the referrer and discuss what type of employees you’re looking for so their next referral is better.

One last step! Check your email to confirm your subscription and to get your free ebook! Thank you!

Article Tags:

Company Culture · featured · Find Your Way · Grow your business · Leadership

Article Categories:

Entrepreneurial Lifestyle · Grow Your Business · Leading Your Team · Your Mindset

Go to Source