Employee referral policies are common for internal recruiting teams but they can be very impactful for staffing companies and recruiting agencies. Having a scalable employee referral policy in place gives you access to a larger audience, reduces costs, and can be impactful in the quality of clients that you place.
Build A Candidate Pipeline
If you’re in the staffing or permanent placement world, your product is the talent you place. Having a pool of candidates that are pre-vetted can dramatically impact the quality of the candidates you place and significantly impact the speed. By leveraging referrals from your currently placed employees (as well as your previously engaged staff) not only provides a trusted way of engaging potential candidates, but it also gives you a layer of vetting that you cannot get through traditionally sourced candidates.
Reduce Recruitment Costs
The faster you place someone, the higher your margins. Most recruiters spend 90%+ of the time committed to each job simply finding candidates. Reducing the time spent finding candidates can dramatically impact the overall costs per placement. Placing through employee referrals can also displace other costs you have, such as job boards that we know do not work.
Help Your Clients
Empower your clients to fill their positions by leveraging their existing employees. Your customers are engaging with recruiters because they do not have the resources internally to find and manage talent – so by offering them a solution that you manage for them can be a win-win for both sides (your fill the position faster, they score a higher-quality potentially longer tenure employee).
When talent is your product, quality, and speed, matters. Placing bad people, even just once, can kill your relationship with a customer. At the same time, you need to maintain profitability to be able to continue offering your services. Leveraging employee referrals in an effective way is the secret weapon to accomplishing both of these objectives for your staffing and recruiting agency!