Bonus Reel: How to Ruin Your Employee Referral Program

How to Ruin Your Employee Referral Program

According to CareerXroads, 28% of external hires in 2011 were referrals, and that number gets even larger when you factor in internal referrals. An employee referral program is a fantastic way to find talent that fits your culture while strengthening your employer brand with your current workers. It decreases cost per hire, time to hire, and turnover.

But just as there are many ways to create an effective ERP, there are plenty of ways to screw it up. Here are the most popular ones – make sure you avoid them.

Forget about it.

We’ve all seen this happen to company initiatives. Management makes a big announcement, holds a splashy launch event, and then…nothing. No reminders, no follow-ups, no mention of a deadline. No one announces the winners – if there are any. Eventually, the program dies a quiet death. To avoid this pitfall, give the program a catchy name with a slogan that reflects your employer brand (like we did for Kaplan, below). Announce winners and new hires as soon as possible, and give regular reminders to employees. Some workers respond to scorecards and leaderboards, which can be real or virtual.

Facebook ad that Brandemix created for Kaplan's ERP

Don’t help employees.
It’s not enough to just tell your workers, “Go talk to your friends!” You have to give them support. Create badges they can post on their Facebook pages, provide short links to use on Twitter, and give them YouTube videos they can send in an email. You can even give them actual cards or certificates to hand out; they’ll feel like Santa Claus. Guarantee interviews for all referrals, so employees know their friends will make the first cut. And if your careers site is boring or complicated, create a microsite just for the program

Make it complicated.

You’re asking employees to spend their free time helping you, so why make it complicated? Strict or obscure rules – like “the referral should not have worked for a competitor in the last three years” – discourage employees. Some organizations forbid managers or the entire HR department from participating, which just creates envy and dissent. And don’t make employees wait too long for their reward; how excited would you be if you had won $100…which you’ll get after the new hire has worked for 90 days and then two pay periods later?

 

Give pathetic rewards.

You’re saving potentially thousands of dollars on a hire, so you can give more than a $25 gift card to the employee who went and above and beyond to improve the team. Publicize the winners to through every internal channel so that other employees will want to double their efforts. If you can’t award large payouts or flashy prizes, there are plenty of low-cost alternatives, such as a premium parking space, lunch with the CEO, or extra/preferential vacation time. No matter what the prize, make the employee feel special and appreciated, which helps not only the ERP but your organization’s morale as well.

And don’t forget to promote the ERP externally, to all your brand’s fans, customers, and applicants. Also, give feedback to employees whose referrals didn’t get hired, so they’ll know what to look for in the future.

Employee referral programs turn your employees into brand ambassadors externally and generate team spirit internally. They’re cost-effective and increase the odds of creating the culture you want in your workplace. Avoid these mistakes and you’ll be well on your way – but if you need additional help, we at Brandemix are experts. And we’d love to hear from you.

Employer Branding Numbers Everyone Should Know!

As experts in employer branding, we’re constantly researching the latest innovations and trends, and I’ve come across some recent recruiting studies that have some eye-opening findings. Think you don’t need an employer branding strategy? Read on.

88%
The percent of employees, out of 19,000 surveys and exit interviews, who leave an organization for reasons other than money. In that same survey, 89% of employers said they believed that employees left only because of money! (The Saratoga Institute)

What this means for you: You can compete even if you can’t offer top dollar. Generations X and Y consider many other factors, including culture, perks, flexibility, and corporate responsibility. If offering average pay and benefits is scaring you from reaching out to prospects, rest assured that your organization probably has one or more other strengths that will impress them.

60%
The percent of employees who would recommend jobs at their company to a close friend or family member — but employers say that only 23% of their employees participate in employee referral programs! (Bernard Hodes Group)

What this means for you: Organizations must do more to encourage their employees to refer talent. More than half your employees want to refer friends; they either don’t know how or don’t think about it when the opportunity comes. If you don’t have a referral program, you should create one. And if you have one, you should explore ways of getting information to your employees in a continuous, memorable way.

An employee referral program that Brandemix created for Kaplan

55%
Percent of employees, from more than 1,700 organizations worldwide, who believe “it’s important that other people want to work for my employer.” (Employer Brand International)

What this means for you: Employer branding isn’t just for recruiting; it can help retain talent, too. Just as employees leave for reasons other than money, they also stay for reasons like reputation and pride in work. Even if your recruiting is going somewhat smoothly, employer branding can help keep your current employees satisfied and productive, lowering your overall hiring costs.

51%
The percent of global employers, out of 632 surveyed, who believe that not having the right people had some effect on their companies’ losing business. (Universum EB Insights 2011)

What this means for you: Talent can be an unappreciated, overlooked, and under-funded resource. Some CEOs are familiar with cost-per-hire, but what about quality of hire? The wrong hire can cost more money than not hiring at all. In this economy, it may be easy to fill certain positions with warm bodies, but finding top talent who will lead the next generation of your company requires a compelling, differentiated message.

Image from Universum Employer Branding Insights 2011

3%
The percent of employers, out of a survey of 175 HR, communications, and marketing professionals, who said they had no employer branding strategy. 51% had an established strategy and most of the others were in the process of developing or refining theirs.(Bernard Hodes Group)

What this means for you: You must have an employer branding strategy. Presuming that you are an “employer of choice” with no need to engage job-seekers is no longer an option. Ninety-seven percent of your competitors are communicating their mission, vision, values, culture, and benefits to your talent pool; you have to get in the game or you’ll give away the victory.
 

-->

Interesting information, no? And here’s one more number: 33%. It’s the percent of companies that plan to increase their investment in employer branding. Are you one of them? Contact Brandemix for a free employer branding consultation.

Learn how to socialize your talent strategy

In a recent Jobvite survey, 80% of recruiters said they use social media as part of their strategy -- and 40% used three or more social media channels. If you're not using social media for recruiting, you may be missing out on top talent.

The incoming generation of workers has been raised on social networks and aren't looking for jobs only on LinkedIn. They're on Facebook, where new applications like BranchOut allow them to network while they chat with friends; they're on Twitter, where @pepsicojobs and @UPSjobs each has more than 12,000 followers; and they're on YouTube, the world's second-largest search engine. And now they're even on Google Plus and Pinterest.


How can you reach those job-seekers?  What brands are using social media in innovative ways? If you're a novice, how do you even set up accounts on all these sites?


I'm here to answer all these questions and more. Join me for Socialize Your Talent Strategy, a free webinar on Thursday, April 26. 


We'll seek out the most inventive brands for each of the six major social channels to engage applicants. We'll talk about the unique content that differentiates your recruitment strategy from your marketing campaign. And we'll look at the emerging trends for 2012 and beyond.


Three different webinar sessions make it easy for anyone to attend:


10 am EDT / 7 am PDT

2 pm EDT / 11 am PDT

5 pm EDT / 2 pm PDT


I hope to see you on Thursday. If you have questions, write to me for more information.

A sneak peek at Brands Undercover

BP was responsible for the worst oil spill in history. Among its many consequences were some drastic effects on the company's talent acquisition. How did the BP careers site change both during and after the disaster?

Coke and Pepsi were invented in the same part of the country, eight years apart. But Interbrand values Coke at $71.8 billion, while Pepsi is valued at only $14.5 billion. The products are virtually identical, so what's the $55 billion difference?


What do the employer brand taglines of Google, Marriott, ENGlobal, and the Virginia National Guard all have common? And why is that a bad thing?

Discover the answers to these and other questions at Brands Undercover: A Behind-the-Scenes Look at Authentic Employer Branding in the Digital World. 

Hosted by the President of Brandemix, Jody Ordioni, this hour-long presentation is a funny and honest look at how major companies are succeeding, and failing, at employer branding. Whether you're beginning your branding efforts or re-branding a well-known name, Jody's insights will ensure that your brand is clear, consistent, and compelling.


Register now for this FREE event, which includes a complimentary breakfast.


Monday, March 19, from 8:30-10:30 a.m. at the New York Times Building in NYC.


We hope to see you there!