Referral program data reveals that money matters, but it is far from the only reason people quit their jobs. According to CareerBuilder, only 12% of employees cite paycheck size as their main reason for leaving. Most turnover stems from issues such as poor company culture, weak management, and limited growth opportunities. Still, financial strain is a reality for many, CareerBuilder research shows that 75% of American employees live paycheck to paycheck at least some of the time.
Employee benefits programs, including referral programs, are a way to keep your best employees engaged and to attract new talent that will help your business grow. These programs signal to employees that the company values their contributions and wants to create a positive, supportive environment for them to thrive.
When combined with competitive pay, growth opportunities, and recognition, they can form the backbone of a strong retention strategy. Here are three ways to increase the use of your employee referral program:
1. Promote the Referral Program Well
Your employee referral program will not work if your employees do not know about it. Awareness is the first step toward participation, and many programs underperform simply because they are not well-publicized. Staff should know about all employee benefits programs they qualify for. Make sure the details, such as eligibility, incentives, and submission process, are communicated clearly.
Start holding informational sessions, sending out email blasts, and posting about the program on your company’s intranet or website. You might also use team meetings or manager check-ins to remind employees about the program and share success stories from past referrals.
You can also offer incentives for employees who participate in the program, such as gift cards or extra vacation days. Incentives don’t have to be expensive; even small rewards can motivate employees to take action.
2. Keep the Process Simple
No one wants to jump through hoops, so make sure the process for referring candidates is simple and easy to follow. Overly complicated procedures can discourage participation, even among employees who know great potential candidates. The easier you make it for your employees, the more likely they are to participate in the program.
Provide them with everything they need to get started, such as a list of open positions and the criteria you are looking for in candidates. Keep these materials updated regularly so employees always have the most accurate information.
You can also create an online portal where employees can submit referrals with just a few clicks. Digital tools like automated tracking and notification systems can keep both the referrer and the recruitment team informed on the status of a referral.
3. Make It Personal
Your employee referral program should be about more than just finding candidates for open positions. It should also be about building relationships between your employees and the candidates they refer. Encouraging personal connections can create a more engaged and committed workforce, as employees feel directly involved in shaping their teams.
Encourage your employees to reach out to their referrals and provide them with information about your company and the open position. Give them talking points, brochures, or links to relevant resources to make those conversations more effective. This personal touch will make your employee referral program more successful. It may even help you attract top talent that you otherwise would not have found.
Referred candidates often join with a better understanding of company culture, making their integration smoother and increasing the likelihood they’ll stay long-term.
Employee benefits programs are a great way to keep your best employees engaged and promote employee retention. They go beyond financial incentives to create a workplace where employees feel supported, valued, and motivated to contribute. By making a few simple changes to your employee referral program, you can attract even more top talent to your company.
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