The competition for top talent is fierce, and companies always look for new and effective ways to attract qualified candidates. In recent years, employee referrals have emerged as one of the most effective recruitment methods. Employee referrals can help companies tap into their existing networks, quickly identify qualified candidates, and reduce recruitment costs.

In this blog, we will explore how companies can fix their applicant shortage problem in no time using employee referrals. We will discuss the benefits of employee referrals, how to create a successful employee referral program using SquaREcruit, and tips for engaging employees and encouraging them to refer their friends and colleagues.

Overcome Employment shortage and attract candidates

According to recent reports, India’s unemployment rate has risen, reaching 7.45% in July 2021. The COVID-19 pandemic has played a major role in exacerbating unemployment, with many businesses struggling to survive and forced to lay off employees. Additionally, India’s population is growing rapidly, leading to an increase in the number of people seeking employment.

In such a scenario, employee referrals can effectively address the employment shortage problem in India. Referral programs can help companies tap into the existing networks of their employees, who may know of qualified candidates seeking employment.

Moreover, employee referrals can help companies increase the diversity of their workforce. Referral candidates often come from different backgrounds and social circles, which can help companies build more inclusive and diverse teams.

Employee referrals can help companies overcome this challenge in several ways. Here are a few examples:

1. Reach a Larger Talent Pool: With the current labor shortage, finding candidates through traditional recruitment methods like job postings and career fairs may not be enough. By leveraging their current employees’ networks, companies can reach a larger talent pool and find qualified candidates who may not have actively sought new opportunities.
2. Improve Quality of Hires: Employee referrals are more likely to result in a successful hire as the referring employee knows the company culture and requirements and can vouch for the candidate’s skills and work ethic.
3. Increase Retention Rates: Candidates referred by employees may have a higher retention rate as they are more likely to fit into the company culture and be a good match for the position.
4. Faster Hiring Process: Employee referrals can help to expedite the hiring process, as referred candidates are already pre-screened and may require less time and resources to vet.
5. Cost Savings: Employee referrals can also save companies money in recruitment costs as they eliminate the need for costly job advertisements and recruitment agencies.

How to manage Employee Referral Programs using SquaREcruit 

SquaREcruit offers an employee referral system that can help speed up the hiring process and increase the quality of hires. With SquaREcruit’s employee referral system, recruiters can share open positions with employees. They can then refer their friends and colleagues with the skills and experience needed for the job.

SquaREcruit employee referral features:

1. By properly tracking and tagging referral candidates to the source employees, SquaREcruit provides end-to-end transparency, which can help to increase brand building and improve the recruitment experience for both employees and candidates.
2. Employees can also track the status of their referrals in the dashboard, providing them with a sense of ownership and investment in the recruitment process. This can help to increase employee engagement and satisfaction, as well as improve the quality of hires.
3. Furthermore, SquaREcruit’s employee referral system allows companies to offer various incentive schemes, such as bonuses or extra vacation days, motivating employees to refer qualified candidates and enhancing the recruitment process.

Conclusion 

The blog post gives a better understanding of how to leverage the referral system to attract qualified candidates, increase workforce diversity, and reduce recruitment costs. It also helps recruiters learn the best practices for creating an effective employee referral program and engaging your employees in the recruitment process.