Zalp Webinar - Raising your employee referral program results to 50 of all hires

7/28/2019 Zalp Webinar - Raising your employee referral program results to 50 of all hires

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RAISING YOUREMPLOYEE REFERRAL

PROGRAM RESULTS TO

50% OF ALL HIRES

50% is the new ERP targetERE.Net, May 8, 2013

Dr John Sullivan

6www.drjohnsullivan.com


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My goals for today

1. To demonstrate the business

impacts of referrals

2. To expose you to dozens of

proven action steps that can

increase your ERP results

to 50%


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What are the business reasons

for focusing on referral programs?

Part I


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Referrals produce the highest volume


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Referrals are #1 in volume

Source popularity Volume

1. Referrals 28.0%2. Job boards 20.1%

3. Career site 9.8%

4. Recruiter initiated 9.1%

5. College 6.6%6. Rehires 4.3%

7. Social media 3.5%

8. 3rd party 2.8%

9. Print 2.2%

10. Temp to hire 2.1%

11. Career fairs 1.9%

12. Walk-ins 0.8%

Source: CareerXroads 2012


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Referrals are a high volume source

Reached 90% of its hires from employee referrals

Ernst & Young and Deloittes ERPs both reached

approximately 50% of all hires last year


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Referrals produce high

quality applicants


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#1 in quality of applicants

In a survey of 73 major employers 88% said

that referrals are the # 1 best source for above

average applicants

Source: 2006 DirectEmployers Association/BoozAllen Recruiting Trends Survey


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High quality applicants

Although only 7% of job applicants came fromemployee referrals

A whopping 40% of ERP candidates get hired

Source: 2013 JobVite Survey


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High quality applicants

Referrals have the highest interview to hire ratio

Data analysis by SilkRoad reveals that 17% ofreferral applicants are interviewed

And 25% of those interviewed are hired (#1)

Source: Silk Road 2013

http://blog.silkroad.com/?utm_source=TLNT&utm_campaign=ec74d7751a-tlnt-daily-most-of-your-job-applicants-really&utm_medium=email
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Referrals produce quality hires


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Referrals are #1 in quality hires

Source effectiveness /quality of hire

1. Employee referrals2. Large job boards

3. Niche job boards

4. Temp to perm

5. Recruiters

6. Trade media

7. Staffing services

8. College recruiting

9. Career fairs

10. Co-op education

11. Mass media

12. Military

Source: staffing.org 2011


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Referral produce more profit

Referral hires produce moreprofit

Hires from referrals produce a nearly 25%

higher profit than hires from other sources

Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman

http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)
http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdfhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf


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Referral hires have

high retention rates


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Retention results

Referral hires have higher retention rates

Referred workers are between 10% and 30% less

likely to quit than workers hired from othersources

Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housman

http://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)


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Benchmark firms that you can

learn from

Part II


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Benchmark firms that you can learn from

AmTrust Bank

Deloitte

Edward Jones

Accenture

Ernst & YoungDaVita

Aricent

Childrens Hospital

Owens Corning

Accolo

CACI International

Acumen Solutions


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Lets start offwith 4 high impact

strategic action steps

Part III


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Strategic action #1

Prioritize and focus your ERP effort


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Strategic action #1

Focus ERP efforts on high priority jobs including:

Mission critical jobs and business units

Revenue generating jobs

Jobs with a high previous referral success rateHard to fill jobs

Sudden key vacancies

Tipbegin with a shortlist of targeted jobs and

then add positions

Prioritize the employee


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Prioritize the employeewith the closest relationship

Accolo uses a referral community

For every open job, it selects a few employeesbased on the likelihood that they will know theright person

As a result, Accolo has averaged 8 referrals forevery job (#1)

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http://www.chinanews.com.cn/sh/news/2008/01-09/1128811.shtml


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Be careful

Homer will referpeople also


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Prioritize your employees

Focus on referrals from top performing employees

Why? Because referral hires from top performers

produce nearly3 times more profitcompared

to a referral hire from a below average performer

Seek out and prioritize referrals from top

performers

But also warn, restrict or ban employees that

routinely make weak referrals

Source: The Value of Hiring through Referrals (source: UC Berkeley by Burksy, Cowgillz, Holman and Housmanhttp://faculty.haas.berkeley.edu/bo_cowgill/papers/Referrals.pdf)


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Strategic action #2

Do not overemphasize monetary rewards


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Strategic action #2

Use help the team" motivation (not $)The most effective referral motivation approach

emphasizes the opportunity to work alongside

great people because the team wins more

frequently when it has the best players


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Strategic action #2

You can build a help the team mentality by

emphasizing these benefits to employeesHigher quality hires will improve business results

and thus raise employee stock value and bonuses

Its part of the responsibility of being a team player

You will be recognizedfor helping the team

You will learn more from higher-quality new hires

You wont have to work alongside slackers

Note: A feedback loop is required to tell employeeswhether they made a junk or a star referral

Also show them the correlation between improved

business results and a higher % of ERP hires


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2 examples referrals dont require $ bonuses

Reached and maintained a +70% referral rate

with no $ rewards

Edward Jones reached 55% with no bonus
http://images.google.com/imgres?imgurl=http://www.24-7pressrelease.com/attachments/039762/AmTrust.jpg&imgrefurl=http://www.24-7pressrelease.com/press-release/new-year-new-amtrustcom-from-amtrust-bank-39762.php&usg=__VysR5gialqBTkDRIGOyO7445wqY=&h=287&w=846&sz=98&hl=en&start=1&sig2=cLOltDVDU5C3VKI-S28FFg&um=1&itbs=1&tbnid=19lG4xc9-kx9SM:&tbnh=49&tbnw=145&prev=/images?q=amtrust+bank&um=1&hl=en&safe=off&sa=N&tbs=isch:1&ei=Np-LS-31MJrotQPG5uSGAw


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Strategic action #3

Be proactive in seeking out referrals


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Strategic action #3

Why you need to be proactive?

Great people know great people, howevermostemployees are extremely busy

so to maximize your referrals you will need toproactively approach your top referring

employees

Here are 3 proactive ERP tools to consider


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Proactive referral tools

A) Give me 5 Proactively approach top employeesAsk them to identify and then contact the Best manager they ever had Best team leader Best idea person or innovator

Best person that "runs into" burning buildings Best problem solver Best sales person that beats you Best student in college that was so smart

Best mentor Best technical skilled person Best international talent Best customer service person

Best external replacement for you when youre promoted


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Proactive tools

B) Reach out to job references for referrals

Identify top performing hires from last year

Call their references that said accurate things

Thank them

Ask them Do you know anyone else as good?

Ask them to be a future reference source


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Proactive tools

C) Most wanted list forrelationship building

Executives identify a list of gamechangers

and potential magnet hires at the beginning of

the year

Employees are asked to seek outthese highly

desirable individuals and to build a relationship

with them over social media(Relationship recruiting)

When they eventually agreed to consider becoming

a referral speed hiring is required


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Strategic action #4

Broaden the programand expand its eligibility


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Strategic action #4

Broaden the program

Add on-boarding referralsproactively ask newhires for referrals during on-boarding (Eli Lily)

Add college referralsthe college population is

well connected through social networks, so add areferral sub-program forcollege hires and interns(Endeca, Intuit)

Add referrals for executive positionsadvanced

ERPs also cover openings for executive positionsFocus on boomerangsencourage your

employees to target your best corporate alumni

(also allow them to make referrals)


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Strategic action #4

Broaden the program

Add internal movement referrals - have a

referral program that is designed to encourage

internal movement. The best practice firm Booz

Allen has a Career mobility team (Also MS,

Cisco)


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Expand program eligibility

Expand eligibility

Executives are encouraged to refer - a white

glove treatment recruiter can be assigned to

encourage executives to make referrals (Deloitte)

Managers and HR are made eligiblemanagers

and those in HR are also well connected, so they

should be eligible to make referrals (Accenture)

Note: you can help minimize conflicts of interestbyoffering the option of contributing any ERP reward to

charity. It can also be a significant motivator for those

that are not driven by bonuses (Accenture, DaVita)


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Expand eligibility

Expand eligibility to non-employees

Open up referrals to non-employees including

Family

Contingent workers

Consultants and vendors

Customers

Board membersCorporate alumni(Internosis, Clearlink, CACI, Verinon)


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Next: A long list of

tactical action steps that candramatically improve results

A ti t


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Action steps

Tips for improving referral volume


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Best practices for increasing referral volume

Hold referral eventshold physical referral

events and virtual meetups in order to garner

attention, to educate, and to get "spot" referrals

(Monster.com)

Alertssend targeted alerts to the most relevant

employees with a successful referral track record

in order to make them aware of your current need.(CACI International and Quicken Loans)

Competitionfriendly internal contests between

teams can dramatically improve results (Deloitte)

i f i i f


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Best practices for increasing referral volume

Harness social networksclosely integrate

referrals with your firms social media effort

Recognize managersset targets, make it a

promotion criteria and then track, report,recognize and reward individual managers forhigh referral rates within their team

I l b i i l f


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Increase volume by requiring less upfront

Accept profilesat least initially, allow LinkedIn

profiles in lieu of resumes

Accept just names instead of requiring the full

resume, accept names only (Childrens hospital inDallas pay $100 just for name in key jobs

even if they are not hired and 25% of the names

result in a hire)

Action steps


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Action steps

Educate your employees


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Education and help

Provide them with hands on help

Provide virtual referral coaches

Offersample social media profiles and providetemplates that can guide employees on how to

develop contacts and relationships online Offer to critique their profile or their blog

Provide them with storiesdevelop "story

inventories" that employees can access and thenuse to "sell" the firm to potential referees

G l h t i t


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Google has a story inventory

A story Inventory for recruiters and employees


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51Source: Whirlpool

A ti t


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Action steps

Set referral expectations

in order to minimize junk referrals

S tti l t ti li it j k f l


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Setting clear expectations can limit junk referrals

Expectations before an employee refers (guidelines)

1.We are exclusively seeking superior individuals

that will make our firm significantly better

2.Because we only want the very best we expect

no more than 3 referrals per employee a month

3.Throughout the referralprocess we expect you

to put the firms best interests first

4.Except in extraordinary cases, we do not want

referrals from relatives or individuals that

approached you and asked to be referred

W d th f ll i i f ti


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We need the following information

Provide the following 6 pieces of information

1. The job title or req # you are referring them for

2. How you know or have assessed their work

3. Assess and then tell us about their skills and

knowledge and how they are superior

4. Assess and then tell us about their cultural fit

so we do not dilute our culture

5. Assure us that you have sold them to the point

where they will accept an interview, if asked

6. Honestly rate them with a A+, A, or B+

Action steps


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Action steps

Referral cards can have a high impact

Referral cards can be powerful


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Referral cards can be powerful

Your customer service just now was exceptional.I work for the Apple store and youre exactly thekind of person wed like to talk to.

If youre happy where you are, Id never ask you toleave.But if youre thinking about a change, give me a call.

This could be the start of something great.

Electronic versions of referral cards
http://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=Ghttp://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=Ghttp://images.google.com/imgres?imgurl=http://www.aquarius-laser.com/html/images/2white_screen.jpg&imgrefurl=http://www.aquarius-laser.com/press_releases.htm&h=440&w=475&sz=3&hl=en&start=1&tbnid=HANXNiqrF2918M:&tbnh=119&tbnw=129&prev=/images?q=white+screen&svnum=100&hl=en&safe=off&sa=G


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Electronic versions of referral cards

Electronic referral cards

An alternative is to provide employees with

electronic referral cards to send to their social

media contacts (the cards can havea tracking codeto ensure that the employee gets credit for the

referral)

Action steps


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Action steps

Utilize high-impact

but low-cost rewards

R d


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Rewards

Action steps for improving rewards

Realize that the average bonus amount generally

falls between $500 and $1,500amounts above

$1,500 have proven to have little impact

The best ERPs never pay "equal" bonuses andmost vary it byjob, location and competitor $

"Grossing up"bonuses (so that they are in effect

tax-free) really WOWs employees

Pay off quickly andconsider aprize patrol

approach to add excitement (Quicken)

R d


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Rewards

Inexpensive rewards to consider

A referral dinner/luncheon held once/ twice a

yearwith the CEO to celebrate referrers

A $25 gift / Starbucks card for your 1st referral

A handful of free movie tickets for the family

First choice at vacation, schedule or other

desirable work items

An example rewarding frequent referrers


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An example rewarding frequent referrers

Expedias frequent hire club

$1000 plus a travel coupon for each additional hire

Action steps


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Action steps

Technology features to consider

Referral technology features


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Referral technology features

Impactful technology features

1. Referrals are tagged and prioritized in the ATS2. The referring employee gets an e-mail thank

you within 24 hours

3. The referred candidate gets a thank youphone call within 24 hours

4. The employee is notified via e-mail when areferral is scheduled for an interview

5. Interviews can be scheduled by the candidateon a web site (Alaska Airlines)

6. Relevant job openings are pushed to the right

employees (With their permission)

Technology features


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Technology features

Technology features (continued)

6. Employee referrals can be made directly fromtheirmobile phone

7. Referring employees have a referral scorecard

8. Employees and candidates can track progressduring the process (Accenture & Aricent)

9. A+ and A rejects are told what they must do to

improve their chances10.An e-newsletter is sent quarterly to A+ and A

rated referrals that were not hired in order tobuild a relationship

Action steps


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Action steps

Administrative actionsfor improving program results

Administrative actions to consider


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Improve responsivenessresponsive is the #1

critical success factor so prioritize the handlingof referrals and develop service leveltimelines

Dedicated recruiters a dedicated ERP

recruiter can improve candidate relationshipmanagement (CRM) and much more effectively

sort and expedite top referrals (CACI)

Expedited interviewingmake a commitmentto interviewall A+ and A quality referral

candidates for key jobs within a certain number of

days (Owens Corning)



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Measure quality of hiremeasure the on-the-job

performance and the retention rates of new hiresfrom referrals and then use the information toimprove the ERP

Conduct a follow up interviewafter asuccessful referral, send a recruiter to interview theemployee in order to identify best practices and toask for additional referrals (Amazon)

Develop a referral program SLAincrease theresponsiveness of both line managers and HR byinstituting service-level agreements that spell out

expectations. (Aricent)

Action steps


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Action steps

Avoid these 4 high impact

ERP program killers

The 4 most impactful program killers


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The 4 most impactful program killers

Do not allow executives to win the argumentthat

you dont need a formal ERP program andmarketing effortbecause its part of their job

Do not withhold rewards during the new hires

probationary periodAvoid referral spam where a high volume of

messaging causes your targeted employees to

eventually ignore all referral messagesAvoid sending employee referrals to apply on

the standard corporate careers website (not tagged)


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Any questions ?

[email protected] 70

Did I succeed giving you a handful

of useful ideas?


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Zalp Webinar - Raising your employee referral program results to 50 of all hires