Next year I’ll be closing in on (gulp) twenty years at Alstin. I remember when, as a fresh-faced Account Coordinator trying to learn as much about recruiting as quickly as I could, I was told that referrals were the most cost-effective way of recruiting the best people.
Twenty years later the mighty Employee Referral Program is still at the top-and it doesn’t matter whether it’s a booming economy or a deep recession; a burning need for high volume openings or trying to find that needle in a haystack, nothing beats ERPs-and nearly every recruiting study will tell you the same thing. I’ve found time and again that ERPs are good for employee engagement, morale, retention and can turn your whole team into recruiters. Plus, when you think of all the different ways you spend money to recruit (outside recruiters, tuition reimbursement, sign-on bonuses, even your favorite ad agency!), what better way is there than giving those dollars to your own employees?
Of course, that doesn’t mean ERPs haven’t evolved. Here’s just a few ways I’ve watched them change:
Proactive – 15 years ago many companies would set up a referral program, put their posters in the lunchroom, and cross their fingers. Not anymore. Knowing the power and effectiveness of ERPs, the push for referrals often comes from CEOs and top leadership. At many companies, specific managers, divisions and departments are expected to deliver a certain number of referrals per quarter.
Serious – Some companies used to treat an ERP like a casual, supplemental offshoot of recruiting, a way to reach candidates they weren’t hitting through newspaper ads and job fairs. No more. In this lean, mean, metrics-driven economy, organizations are putting their energy into only what works, and because they have a great ROI, referrals are often at the top of the list.
Smarter – One of the things we focus on at Alstin is helping companies encourage solid, qualified referrals and discouraging the unqualified referrals that waste everyone’s time. It all starts with being very precise about the terms of the ERP (who is eligible, who isn’t, the terms of the program, what qualifications must the person have to be considered a qualified referral, etc.)
Easier – The use of email, emarketing and Talent Acquisition Systems that handle referrals has drastically cut down (and in some cases eliminated) the paper administrative burden that was once tied to ERPs.
I’m always pleased when I hear that one of our clients is moving forward with an ERP project because I know that they’re going to see a good return, reach a different, higher-qualified audience and get measurable results.
