Employee referrals tips, ideas and Zao product updates

What’s the ROI on your Employee Referral program?

woman calculatorCan you put a dollar amount on love? No, but you can do that for your referral program. It is not surprising that referral programs have been used successfully for decades since they have proven themselves to be highly effective. While it’s most common for employers to only consider cost-per-hire, it is also very important to acknowledge the impact post implementation. While most firms do not measure the economic impact of other factors, those that do can easily prove that ERPs produce very meaningful ROIs. According to ERE’s Dr. Sullivan, candidates sourced via referral are much more likely to meet job requirement expectations, meet minimum standards of productivity faster, perform better long-term on the job, accept offers more often, and, not less importantly, turn-over less often.

Additionally, by asking employees to think of the best people they have worked with or know to be qualified for specific positions, firms can expose themselves to great, qualified people who are not actively looking for a job, and while doing so, strengthen their employer branding!

Want to find out your Referral ROI?
In order to help you find out your Referral ROI, we put together an ROI calculator. In order to use it, research your budget over the past year to come up with the following numbers:

  • Total number of hires (a year)
  • Percentage of hires from agencies, referrals, and job boards or other sources (together make up 100%)
  • Direct cost of a job board hire, referral hire, and agency hire (in $)
Fill out my online form.

One Comment

  1. Posted June 4, 2014 at 6:30 pm | Permalink

    Good start. However you calculate the costs and value of the ERP, it must be done. I would also look at the average # of referrals you get per job opening with your current program in place (to generate your current % hires attributed to ERs) and then think about how to make it more efficient and scale average referrals per job or for specific jobs or job families.

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