Today, employee referrals are the most useful way of finding the best candidates for the job.
The trend is changing as companies and recruiters use a variety of sources to find appropriate candidates for their open positions. Traditionally, companies pick from the pool of viable applicants on career sites and job boards but today, recruiters and companies are utilizing employee referrals to find the best qualified applicants.
- Employee referrals have the highest applicant to hire conversion rate – only 7% apply but this accounts for 40% of all hires.
- Applicants hired from a referral begin their position quicker than applicants found via job boards and career sites (after 29 days compared with 39 days via job boards and 55 via career sites).
- Referral hires have greater job satisfaction and stay longer at companies – 46% stay over 1 year, 45% over 2 years and 47% over 3 years.
- Sales persons are the most hired position from employee referrals.
- 67% of employers and recruiters said the recruiting process was shorter, and 51% said it was less to expensive to recruit via referrals.
Here is how valuable a referral truly is for enterprises seeking perfect candidates for their open positions.