Issue link: https://www.e-digitaleditions.com/i/182340
Talent Management In The Know Why an employee referral program may be the answer to your recruiting and retention problems. By Cari Turley The right people can make or break a company. That's great news for the self-employed, but unless you have a workforce of one, staffing is a major, perpetual concern. Sad but true, your employees won't stay forever. One in three employees will leave a current job between 2013 and 2014, and as baby boomers begin to retire, replacement needs will exceed new job growth vacancies in four out of five occupations. The U.S. Bureau of Labor Statistics' 2010– 2020 Employment Project Report forecasts a decreasing overall labor force over the course of the decade, leaving thousands of organizations in the lurch. Recruiting is a challenge even when you're not trying to keep up with large-scale generational turnover. You need to hire quality candidates who won't leave in six months. An employee referral plan is a great option. More than just a recruitment strategy, it's an all-inclusive approach to engage your workforce and streamline your recruiting, all while saving time, money, and effort. An employee referral program can help acquire top talent at a fraction of what agencies will cost, all while strengthening your unique culture of employee success. [78] HRO TODAY MAGAZINE | SEPTEMBER 2013 What is employee success? It is the intersection of performance and engagement. It's the secret of companies known for innovation, fantastic customer service, consistent business success, and inimitable culture that are consistently at the top of their field. Engaged employees provide exceptional service; exceptional service turns customers into supporters; and supporters lead to business success. With a shared vision for success, your workforce will lead, collaborate, innovate, and excel. So why move forward? Employee referral programs have a bevy of benefits that are backed up by statistics: More efficient. Candidates found through employee referral programs are hired at a rate of one to three. Non-referrals are hired at a rate of one to ten. More cost-effective. Employee referrals usually cost less than $1,000 (See Sidebar Success story: Meridian). Actual hires. Employee-referred candidates make up just 6.9 percent of total candidates, but account for 40 percent of total hires. Passive candidates. Referrals bring jobs to the attention of