What is Employee Referral Rate?
Employee Referral Rate is the percentage of new hires that come from employee referrals. This metric indicates how effectively your workforce is participating in the recruitment process and can reflect your employees' overall satisfaction and engagement.
How to Measure Employee Referral Rate?
Employee Referral Rate is measured by:
Number of Referrals: Track the number of new hires that current employees referred.
Total Number of Hires: Divide the number of referral hires by the total number of hires over a specific period.
ATS Tracking: Use an Applicant Tracking System (ATS) to track referrals and calculate the referral rate automatically.
Number of Open Positions: Consider the impact of open positions on referral rates, especially for hard-to-fill roles where referrals may be more valuable.
How to Improve Employee Referral Rate?
To increase employee referral rate:
Implement a Referral Program: Establish a formal referral program with incentives to encourage employees to refer qualified candidates.
Promote the Program: Regularly remind employees of the referral program and the benefits of participating.
Streamline the Referral Process: Make it easy for employees to submit referrals and track the status of their referred candidates.
Recognize Successful Referrals: Publicly acknowledge and reward employees whose referrals lead to successful hires.