The benefits of employee referrals are universally lauded and are considered the number one source of high-quality candidates. Faster time to hire, reduced cost per hire of up to $3000, candidates that come from within a trusted network and, most importantly, the validation that you have engaged employees that are willing to act as an advocate for your organization. On top of this, employee retention is typically greater for referrals compared to non-referrals.
No wonder organizations are doing what they can to get more of them. In an effort to promote referrals, the majority of organizations offer related bonuses that can be anywhere between $1,000 and $5,000 for successful placements. Some, in the place of money, offer other incentives such as extra vacation days, day trips and expensive gifts. There are also those who offer gestures for all referrals, regardless of whether they get hired, in the form of low-value vouchers or free coffees.
It makes a lot of sense to offer incentives for something you want to promote, but – believe it or not – referral numbers are not affected by the size of the reward. All these incentives are nice to offer and, in terms of the cost-to-value
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