CONCORD, Mass., May 5, 2015 /PRNewswire/ -- A new survey reveals that talent acquisition teams that expand their employee referral programs (ERP) beyond employees and invite referrals from alumni, contractors, customers, vendors and partners get 28% more hires from referrals and 8% higher quality referral candidates. The statistic is powerful considering organizations are spending more and taking longer to fill key jobs, but may get better recruiting results by leveraging the full network of the organization. The survey was conducted by SmashFly Technologies, the leading Recruitment Marketing Platform provider.
Employee referrals account for 32% of new hires on average and produce the highest quality of candidates compared to other sources, according to the survey. Among respondents, 77% currently have a formal referral program, but for those that do, 57% limit their program to employees only.
The survey shows that the 43% of organizations that reach beyond employees to invite referrals from their entire network generate 36% of hires from referrals—an increase of 28% over employee only programs—and report 8% higher quality referral candidates. The data illustrates that extending who can refer candidates into the organization can increase the volume of leads without decreasing quality.
With referrals bringing the highest volume of quality candidates, it's not surprising that 35% of organizations are actively seeking ways to start a formal program. Yet 44% say lack of budget and resources to offer rewards and manage referrals are holding them back.
If organizations can effectively expand their referral programs beyond employees, they can gain a competitive differentiator in the global competition for talent, the SmashFly survey finds.
SmashFly conducted the online survey in April 2015 to better understand the state of employee referral programs. The survey included responses from 114 talent acquisition and HR professionals, 74% of whom were manager level or above. The participants came from companies primarily headquartered in North America and represent a cross-section of employee sizes.
To get the SmashFly survey results, methodology and summary report, called "Beyond Employees: Employee Referral Programs Redefined," download it here.
About SmashFly Technologies SmashFly's award-winning Total Recruitment Marketing Platform enables talent acquisition teams to attract, engage and nurture candidates and convert them into qualified applicants using a centralized management system that automates and measures recruiting strategies and programs. Customers use SmashFly to unite their previously disconnected recruiting tools into an integrated software platform for Job Distribution, Candidate Relationship Management (CRM), Talent Networks, mobile-responsive and SEO-optimized Career Sites, Employee Referrals, Social Recruiting and Recruiting Analytics. Used to target pre-applicants in the front-end of the talent acquisition process, SmashFly integrates with any applicant tracking system (ATS) to provide unparalleled, real-time analytics on the sources that produce the best hires for the organization. Learn more at smashfly.com and follow us on Twitter @SmashFly.
Media Contact: Chris Brablc, SmashFly Technologies, +1 518-209-3005, [email protected]