Employee Referral Statistics 2023
In this post, we’re sharing and highlighting employee referral statistics you need to know for 2023.
Employee referral programs are a common way for companies to source new hires. According to a survey by Jobvite, employee referrals are the most effective way to fill job openings, with referred candidates hired at a rate of about 30% (compared to an average rate of 7% for job applicants sourced through other methods).
Additionally, referred candidates are often considered to be a better fit for the company and stay in their roles longer than other hires. Some other statistics on employee referrals include:
- 84% of companies use employee referral programs
- Referral hires are 40% more likely to be retained after one year than non-referral hires
- Referred employees are 18% more likely to be satisfied with their jobs
- The cost per hire for employee referrals is typically lower than other recruiting methods
Keep in mind that these statistics vary based on the company and the industry.
2023 Employee Referral Statistic Highlights:
Employee Referrals are 5x more likely to be hired.
82% of employees rate employee referrals above all other sourcing options to yield the best ROI.
$7,500 is the amount of money saved in productivity and sourcing costs when hiring a referral.
45% of employees sourced from employee referrals stay for longer than 4 years. Only 25% of employees sourced through job boards stay for over 2 years.
39 Days is the high end of the average days to fill a position without an employee referral. ERIN Employee Referrals only take 21 days.
$1,500 was the average employee referral bonus in 2020. (Down $1,000 from 2019)
Want to learn more about how your business can maximize its employee referral policy? Book a meeting to talk with the ERIN team here.