HR City

Employee Referrals: The Best Source for Quality Hire

By SiliconIndia   |   Monday, October 15, 2012
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Bangalore: Recruiters are relying more on employee referrals to select an appropriate candidate. They consider these referrals as they feel that applications referred by an employee of the company will be a good new hire.

Although career sites and other sources have the highest number of applications, however, employee referrals have a good number of qualified hires. Recently, companies have identified the value of employee referrals and they have started providing compensation to those employees who make a successful hire.

In a study by Jobvite, only 7% of applications come from employee referrals, the hiring rate for this source is at 40%. 21% of the new hires are from career sites, 19% from agencies and other sources, 15% from job boards while only 0.4% hires are through notifications. It may also be noted that applicants hired from an employee referral will join their work sooner than the other sources apart from having a high job satisfaction and longer stay than the employees hired from other sources.

The research also found that 8.6 out of 10 respondents identified referrals as the best source for selecting a quality candidate. Furthermore, 30% companies plan to invest more in referrals.

Here is an infographic designed by Jobvite that shows how employee referrals facilitate recruitment.


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