Home topics workplace hr-and-staff HR Recruitment Small Business HR New hires sourced via referral programs produce 25% more profit for businesses Guest Author June 21, 2016 An efficient employee referral program can save on recruitment fees and time spent hiring new staff. This can have a significant impact on a business’s bottom line. It can cost up to $20,000 in fees and take hours to hire one staff member through a recruitment firm versus hiring someone via employee referral programs. [1] Employee referrals are the cheapest and fastest way to attract and hire high-quality talent. Referrals offer a much higher chance of success because employees tend to refer people they know will do a great job and who will fit in with the company’s culture. Employee referrals offer many benefits to businesses. Referrals uncover qualified talent leads, which lets businesses fill job vacancies faster, leading to lower costs and fewer hours spent on recruiting. When hiring referred candidates, talent managers can screen and interview fewer applicants since the candidate leads they have are already qualified by virtue of their connection to an existing employee. The more employees sourced through referrals, the lower the company’s overall cost of hiring new staff will be. Loyalty to the business is a key trait of referred employees. 45% of referred employees are still in the role after two years, compared to just 20% of employees sourced from job boards. [2] Greater employee retention reduces the costs of rehire, retraining, and productivity ramping. Referred hires