Referral Schemes
BASIC CHARACTERISTICS OF EXCELLENT PROGRAMS
In order to gather the "right" metrics about a referral program, you need to know upfront what the critical design elements are that turn good referral programs into great ones. Next, you need to have metrics that cover each of these critical areas if you expect to continually improve your results:
* ON-THE-JOB PERFORMANCE. The primary reason for using referrals is because they produce better performers (quality of hire). Metrics must be developed to compare the performance of referrals versus new hires from other sources.
* RETENTION RATES. Because referral programs produce hires who stay longer, you should compare the difference in retention rates between referrals and other hires.
* PROACTIVE REFERRALS. Most referral programs advertise or launch themselves and wait for individuals to find the time to refer candidates. The optimal approach proactively seeks out top performers and key individuals and then directly solicits them for names of the best candidates. Thus it's critical to measure the percentage of referrals that come from proactive efforts.
* EMPLOYEE PERCEPTIONS OF THE PROGRAM. Measure how employees perceive the referral program. If employees see it as a program that benefits them (in that it guarantees that they work with the very best team members), then the program will produce excellent results. However, if they perceive it just as a method of earning extra money, the program is in trouble.
* SPEED AND RESPONSIVENESS. Paramount to building program engagement is the speed and responsiveness of the referral initiative. Because employees enthusiastically respond and refer when they get immediate feedback and results, the actual response time of the program must be measured.
* FOCUS ON CRITICAL JOBS. Because referral programs, like all recruiting programs, produce greater results if they are focused on critical business units and mission-critical jobs, metrics programs must assess not just the raw
In order to gather the "right" metrics about a referral program, you need to know upfront what the critical design elements are that turn good referral programs into great ones. Next, you need to have metrics that cover each of these critical areas if you expect to continually improve your results:
* ON-THE-JOB PERFORMANCE. The primary reason for using referrals is because they produce better performers (quality of hire). Metrics must be developed to compare the performance of referrals versus new hires from other sources.
* RETENTION RATES. Because referral programs produce hires who stay longer, you should compare the difference in retention rates between referrals and other hires.
* PROACTIVE REFERRALS. Most referral programs advertise or launch themselves and wait for individuals to find the time to refer candidates. The optimal approach proactively seeks out top performers and key individuals and then directly solicits them for names of the best candidates. Thus it's critical to measure the percentage of referrals that come from proactive efforts.
* EMPLOYEE PERCEPTIONS OF THE PROGRAM. Measure how employees perceive the referral program. If employees see it as a program that benefits them (in that it guarantees that they work with the very best team members), then the program will produce excellent results. However, if they perceive it just as a method of earning extra money, the program is in trouble.
* SPEED AND RESPONSIVENESS. Paramount to building program engagement is the speed and responsiveness of the referral initiative. Because employees enthusiastically respond and refer when they get immediate feedback and results, the actual response time of the program must be measured.
* FOCUS ON CRITICAL JOBS. Because referral programs, like all recruiting programs, produce greater results if they are focused on critical business units and mission-critical jobs, metrics programs must assess not just the raw