An employee referral program is a kind of recruitment strategy that relies on existing employees and their friends, family, and other contacts to source talented candidates. When positions become available, companies with a strong referral program encourage their teams to reach out to their social and professional networks to solicit new applications. These applications receive special attention and the referring employee often receives a special bonus or reward if the process results in a successful hire.

Should your company implement a program like this? And if you already have one, are you getting the most out of your system? Is your referral process as streamlined and productive as possible? If you aren’t sure, consider these tips.

Make the Most of Your Employee Referral Program

1. First things first: If you don’t have a referral program, start one now. Studies consistently show that referred employees come with lower risk and better outcomes than employees drawn from a population of total strangers.

2. Make your referral program easy. Limit the rules to one page, or even better, less than 200 words. Don’t force existing employees to fill out complex forms when referring an outside candidate. And don’t paint your HR team into complicated corners by allowing multiple employees to recommend the same person, then having to divide up the resulting reward. Keep the process simple.

3. Make a fuss over employees who provide great referrals. If you can afford to offer substantial monetary rewards, do so. Consider it an investment, not an expense. If you can’t offer much money in exchange for referrals, at least publish a list or distribute a newsletter praising those who bring in talented people. Everyone loves to be thanked, and we all feel deep satisfaction when our friends make us proud.

4. Like a great marketing strategy, a great referral program starts with word of mouth. Encourage conversation by coming up with strange rules, and keep a sense of humor about the process. Ask employees to bring you referrals from candidates with five letter names. Or refuse to accept referrals from candidates named “Steve.” Let your employees ask why. Don’t tell them. The more talk, the better.

5. Keep things fun. Nobody wants to bring a friend into a company with a negative or unpleasant culture.

6. Don’t make promises your company can’t keep. In other words, don’t accept or consider applications from unqualified candidates just because they came in via referral. Keep an open mind, but exercise judgment.

Need more help with your referral program or candidate sourcing strategy? Talk to the area HR pros at Expert Staffing. Arrange a consultation with our team and start streamlining your hiring process today.