Most Innovative Ideas for Employee referral bonus programs.
Employee referral bonus programs are considered suitable, and the result is bearing practices in companies instead of traditional methods. Recruitment is a significant churn around the process for companies. The on-going cycle demands a vast database that needs to be screened & scheduled for recruitment.
The Employee recruitment sources as the default ones being
Advertising through Print media.
Advertising through online job portals.
Showcasing job posting on the company website.
Arranging job fairs.
All the above activities demand investments to attract the right talent. However, there is no guarantee that high sources will attract the right talent and retain.
What is an Employee Referral Bonus Program?
An employee referral program is introduced by companies to get new hires by referral recommendations from in-house employees. There is a bonus linked to the referral program to encourage employees to refer to a skilled workforce.
Advantage of the Employee Referral Bonus Programs.
A skilled employee has his/her circle of similarly skilled employees and can recommend from his ex-colleagues, friends, or friends in similar or competitor organizations, and this has higher chances of bringing the right talent and immediate closures.
Increased retention of referring an employee
The referring employee not only remains motivated by attracting the employee referral bonus but feels obliged to stick around and support the employee referred by him and joined.
Reduced recruitment cost
The companies can announce highly attractive bonus vis-à-vis paying considerable fees to recruitment agencies. The referral process any day brings down the recruitment cost considerably.
Seek candidates who are not looking for jobs
The referral process helps to reach those people in the job market who are just dormant and not hunters. Some candidates are all over the place and might not turn to be a long-term employee to the organization. Attracting need-based employee should not be the motive, but will-based employees.
Talent across geographies
If your company is spreading across geographies, employee referral is the best way to attract local candidates in the respective locations.