HOW TO CREATE AN EMPLOYEE REFERRAL SYSTEM

An employee referral programme can be a superior recruiting tool: referred candidates are typically cheaper and faster to hire and stay at their jobs longer than traditional hires, according to global hiring platform Workable.

How do you set up an employee referral program? Here's what Workable recommends:

1 EXPLAIN OPEN JOBS AND THE REQUIREMENTS

Employees don't know what jobs their companies are looking to fill and what the requirements are. Include links to job descriptions when sending emails asking for referrals.

2 KEEP EMPLOYEES UPDATED Employees who refer candidates expect to receive updates on the process. Not hearing back can make employees reluctant to refer again, which undermines your employee referral programme. Let employees know what's happening at every stage. When a referred candidate isn't selected for an interview, send the referrer a thank-you email anyway. Encourage him or her to keep looking for great people. That way employees won't feel under-appreciated.

3 OFFER A MIX OF MONETARY

AND NON-MONETARY INCENTIVES Money is a popular incentive, but offering an experience (eg trips, vouchers, gifts) can better market your employee referral programme. And some of these incentives, like time off and gift vouchers, are less expensive than cash awards. Give higher rewards for harder-to-fill positions. Offer a flat amount for each referral and then offer more if referred candidates get interviewed, get hired or stay at your company for at least six months. Pay some of the bonus after the new employee has been on board for six months or a year.

4 ACKNOWLEDGE GOOD REFERRERS In addition to rewards, publicly recognise effective referrers. If one employee has referred 10 people in the past three months, six of whom were hired, you've got a star referrer on your hands. Make sure they know you appreciate their effort. Any acknowledgement, ranging from an award to public praise from the CEO, can be meaningful. Make these acknowledgements a codified part of your referral programme policy.

5 ENHANCE USER EXPERIENCE IN YOUR JOB APPLICATION PROCESS

Your referral process shouldn't be lengthy, complicated or require lots of clicks. Otherwise, you risk driving referrers away. Use a referral software program or platform that allows hiring managers and recruiters to send requests for referrals for particular positions. Some referral software systems enable employees to share open positions with their social network.

6 EXPERIMENT WITH REFERRAL TACTICS Survey employees to find out what prompted them to refer (or not refer) and what suggestions they have to improve your referral programme. A successful referral programme continues to adapt by making use of a variety of initiatives.