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5 Steps to an
Effective Employee
Referral Program
There's no tool more
powerful in recruiting
than a strong employee
referral channel.
A strong employee referral program has several
measurable benefits to your organization.
Referred employees are the #1 source of new
hire quality - showing high retention rates,
engagement, and performance.
Compared to any other source:
Referrals
stick around
longer.
Referrals
produce more
profit.
Referrals are
#1 in hiring
volume.
$
Referrals are your best
source of new hires, yet
they make up only 6.9% of
applicants. So why aren’t
referrals more common?
Most companies struggle
with the following:
They can’t get employees to
use their applicant tracking
systems.
There’s no clear process for
submitting referrals.
Referrers feel excluded from
the process after submitting a
contact.
The good news is that
building a strong referral
program is actually quite
easy.
Here are the 5 things you
need to do:
Make employees feel
appreciated so that
they refer again.
#1
New York-based company Axial incentivizes employees
to submit referrals through recognition.The recruiting
team makes sure to recognize employees who have
submitted referrals by presenting them with a vintage
Axial t-shirt at company-wide meetings. Using this
tactic, referrals make up 29% of Axial employees.
TIP
#2
Keep people
informed as their
referrals progress.
It may be hard to believe that Airbnb used to struggle to get employee
referrals.The company was trying to build a community based on
trust – but even Airbnb employees didn’t trust the candidate
experience.The recruiting team failed to get referrals from current
employees, because even they refused to subject their friends or
colleagues to the system in place. After revamping the interview
process, Airbnb is now widely-recognized for its positive candidate
experience, and employees are proud to submit referrals.
TIP
#3
Use friendly
software so all
employees will use it.
In a recent push to hire 25 top-notch engineers,
Thumbtack offered a trip anywhere in the world to the
person who had the most referrals come on-site for
interviews.They also gamified the process, introducing a
fun competition that resulted in high engagement.
Employees were able to track the status of their referrals
easily through Greenhouse.
TIP
#4
Reward engagement,
not results.
Referral Program Killers To Avoid
 Delaying the reward/bonus payment for three to six months
 Failing to remind people frequently
 Equal rewards for all jobs - prioritize them!
 Not tracking referral rates by manager
 Too many rules and restrictions
TIP
#5
#5
Advertise
your program!
Take the time to remind your employees
about the referral program and the high value
of referred candidates. It helps to prioritize a
few jobs at a time rather than simply sending
a link to your careers page.
TIP
How to Build a Strong
Referral Culture
Click to download your free copy!
In this ebook, you will learn:
 How to make a data-driven case for a referral
program at your organization.
 Employee referral tips from high-growth companies
like Airbnb and Thumbtack.
 One key tactic that resulted in 4x the referrals for
Greenhouse customers.

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5 Steps To An Effective Employee Referral Program

  • 1. 5 Steps to an Effective Employee Referral Program
  • 2. There's no tool more powerful in recruiting than a strong employee referral channel. A strong employee referral program has several measurable benefits to your organization. Referred employees are the #1 source of new hire quality - showing high retention rates, engagement, and performance.
  • 3. Compared to any other source: Referrals stick around longer. Referrals produce more profit. Referrals are #1 in hiring volume. $
  • 4. Referrals are your best source of new hires, yet they make up only 6.9% of applicants. So why aren’t referrals more common? Most companies struggle with the following:
  • 5. They can’t get employees to use their applicant tracking systems. There’s no clear process for submitting referrals. Referrers feel excluded from the process after submitting a contact.
  • 6. The good news is that building a strong referral program is actually quite easy. Here are the 5 things you need to do:
  • 7. Make employees feel appreciated so that they refer again. #1
  • 8. New York-based company Axial incentivizes employees to submit referrals through recognition.The recruiting team makes sure to recognize employees who have submitted referrals by presenting them with a vintage Axial t-shirt at company-wide meetings. Using this tactic, referrals make up 29% of Axial employees. TIP
  • 9. #2 Keep people informed as their referrals progress.
  • 10. It may be hard to believe that Airbnb used to struggle to get employee referrals.The company was trying to build a community based on trust – but even Airbnb employees didn’t trust the candidate experience.The recruiting team failed to get referrals from current employees, because even they refused to subject their friends or colleagues to the system in place. After revamping the interview process, Airbnb is now widely-recognized for its positive candidate experience, and employees are proud to submit referrals. TIP
  • 11. #3 Use friendly software so all employees will use it.
  • 12. In a recent push to hire 25 top-notch engineers, Thumbtack offered a trip anywhere in the world to the person who had the most referrals come on-site for interviews.They also gamified the process, introducing a fun competition that resulted in high engagement. Employees were able to track the status of their referrals easily through Greenhouse. TIP
  • 14. Referral Program Killers To Avoid  Delaying the reward/bonus payment for three to six months  Failing to remind people frequently  Equal rewards for all jobs - prioritize them!  Not tracking referral rates by manager  Too many rules and restrictions TIP
  • 16. Take the time to remind your employees about the referral program and the high value of referred candidates. It helps to prioritize a few jobs at a time rather than simply sending a link to your careers page. TIP
  • 17. How to Build a Strong Referral Culture Click to download your free copy! In this ebook, you will learn:  How to make a data-driven case for a referral program at your organization.  Employee referral tips from high-growth companies like Airbnb and Thumbtack.  One key tactic that resulted in 4x the referrals for Greenhouse customers.