News: March 2013
In today’s tough job market, the saying “it’s not what you know, it’s who you know,” has never been more true. Many businesses offer rewards and incentives to staff who assist with hiring new candidates.
With so many variables involved, external applications, agency candidates, social networks, and referrals, having an effective applicant tracking system in place is vital when it comes to verifying which methods work best for your company. Most businesses trust their employees to recommend high quality candidates but does knowing someone necessarily make a person a good candidate?
Hiring a new person is a big commitment for any business. Not only does it mean paying the employees’ salary, but the business also commits to paying for their training, background checks, and other assessments. In today’s financially difficult times, getting it right when it comes to hiring new employees has never been more important.
Incentivising your team to refer potential candidates can save a considerable amount of time and money. Employment agencies and head hunters charge very significant fees. By offering a reward (say, £500 or 2 days extra paid holidays) to existing employees for introducing a new employee, the business can fill a role without paying thousands of pounds to a recruitment agency.
If an existing employee has a relationship with a potential recruit, the firm will also be able to learn about the candidate from the current staff member. Also, most people will only introduce good candidates to their employer as the candidate is a reflection on them. The business can protect itself by only offering the reward once the new recruit has successfully completed their probationary period.
A further benefit of adopting incentives for staff who successfully introduce new employees to the firm is the motivation and positivity experienced when the introducer receives their bonus or reward.