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January 13, 2023

Employee Referral Statistics You Need to Know for 2023 (Infographic)

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 being 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
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Keep in mind that these statistics may 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 rated Employee Referrals above all other sourcing options to yield the best ROI.

$7,500 per hired employee referral is the amount saved in productivity and sourcing costs.

45% of employees sourced from employee referrals stay for longer than 4 years, and only 25% of employees sourced through job boards stay for over 2 years.

39 Days was 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)

Interested in learning more about how your business can maximize its employee referral policy? Book a meeting to talk with the ERIN team here.

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