Employee Referral Programs: How To Make Your Employees Happy?

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    Sep 04, 2014
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Employee Referral Programs: How To Make Your Employees Happy? Photo by Savio Vadakkan

The benefits of a well running employee referral program to the organization in terms of lower costs per hire, faster and more effective hiring, less use of resources etc have been well documented. What is sometimes overlooked are the advantages that accrue to employees from a successful referral program. In fact studies have shown that organizations with a successful referral culture report much higher levels of employee satisfaction and engagement than others. Many organizations in fact use referral programs not only as a recruitment tool but also as an employee engagement initiative to enable employees to be happier at the workplace.

Employee referrals to make employees happier may seem a little farfetched but is entirely possible due to two major benefits stemming from the referral program.

Firstly, referral programs allow employees to refer deserving candidates and be rewarded in the process. The chance to earn rewards, in whatever shape and form can be both financially and emotionally satisfying for employees as it is a sign of appreciation for efforts put in. All human beings love to be appreciated and employees are no different, so a scheme which rewards them, sometimes with good bonuses will always generate positive feelings.

Secondly, employee referral programs are based on employees referring other individuals they know previously for job openings within the organization. Since nobody would like to refer someone they don’t like or are not on good terms with, the basic assumption while referring is that these candidates are people thatemployees like or respect on a personal or professional level. Working alongside people you like and respect takes the stress out of working in teams leading to higher productivity and more congenial working atmosphere. Employees are happier since they know and trust the people they are working with due to their past experience with them. A referral hire also finds it easier to work with colleagues they have known in the past and tend to stick around longer.

Employee morale goes up significantly if they see coworkers around them happy which in turn motivates them to say good things about the organization to their connections generating even more referrals. This also means they earn more rewards leading to more satisfaction. As hiring for niche skill sets becomes even more difficult in a tough economic environment, employee referral programs can help you reach individuals with specialized skill sets through the power of employee referrals. All you need to do is ensure the program provides them the resources required and rewards them appropriately and in time.

Author's Profile

Savio Vadakkan is a Marketing Professional for ZALP, a unique employee referral solution. ZALP guides organizations about how to turn your employees into recruiters in the entire employee referral process.

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