Today, employee referrals are the most useful way of finding the best candidates for the job.
Here is how valuable a referral truly is, courtesy of Jobvite.
- The average employee will have 150 contacts on social media networks – 100 employees means around 15,000 contacts (and possible candidates).
- Employee referrals have the highest applicant to hire conversion rate – only 7% apply but this accounts for 40% of all hires.
- Applicants hired from a referral begin their position quicker than applicants found via job boards and career sites (after 29 days compared with 39 days via job boards and 55 via career sites).
- Referral hires have greater job satisfaction and stay longer at companies – 46% stay over 1 year, 45% over 2 years and 47% over 3 years.
- Salespersons are the most hired position from employee referrals.
- 67% of employers and recruiters said the recruiting process was shorter, and 51% said it was less to expensive to recruit via referrals.