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Why You Should Take Care of Employee Referrals


Why You Should Take Care of Employee Referrals

Today, many businesses take advantage of employee referrals as a tool for finding talent. Because current employees have a better understanding of the company and its needs and requirements, they’re the perfect individuals to recommend connections for new jobs.

Referrals account for about 40% of new hires even though they account for only 7% of total applicants. That’s because businesses receive such high quality applicants from employee referral programs, and well-run programs can result in higher employee engagement because employees feel empowered. That being said, it’s important to take care of employee referrals in order to keep engagement positive and help improve employee retention.

Valuing Referrals Translates to Employee Engagement and Retention

Employees generally feel empowered when they are encouraged to recommend their connections for job openings. If they recommend a great candidate, it reflects well on their own judgement and they feel good about helping their connection earn a new job. Regardless of the positive impact, employees may also feel pressured about their referrals. Depending on the approach, employees may feel pressured to refer a perfect candidate or pressure on their relationship with the referral if the process does not work in their favor. Because the referral is a reflection of the employee, they want the experience to be positive for their recommendation and ultimately work out well for both parties.

In order to maintain employee retention, give employee referrals the attention they deserve as this may reduce the stress on the employee and their relationships with the referral and the organization. Just as importantly, ensuring the candidate receives equal attention and consideration makes them have a positive candidate experience, reflecting well on the organization regardless of whether or not they are offered the job.

Try Recorded Interviews for Standardization

Relationships are tricky in business, and it’s best to be cautious when blending employees’ personal and professional relationships through referrals. To ensure all candidates receive fair treatment and proper attention, try using recorded video interviews to ask all candidates the same questions to create simple standardization. Recorded interviews are a time-saving tool for both screening candidates and easily comparing them side by side. To further reduce the potential for bias, try using text questions and responses first and anonymizing the candidate details (new GreenJobInterview feature!) when sharing with managers so that reviewers can blindly narrow down candidates based on the text responses.

In order to maintain positive relationships in the workplace and keep employees feeling comfortable about recommending others, use tools like video interviews to remain fair during the hiring process. Give candidates the time and attention they deserve and make sure referred candidates always know where they stand in the process, and you’ll likely find that they make the best hires.


Holly Wade is the Marketing Manager at GreenJobInterview. She comes from the technology world with a background in marketing and public relations, where she specialized in content management, brand development and social media. Connect with Holly via LinkedIn: