It’s hard to know what percentage of your hires should be coming from employee referrals. So, what’s the right number? Here’s a couple of datapoints to help you determine the right employee referral goal for your company.
- Dr. John Sullivan outlines the stats behind employee referrals based on research conducted between 2008 and 2012. He writes, “46% of all hires at top performing firms are referrals, while for all firms, they range between 28% and 39.9% of all hires.” (You may also want to check out some of Jobvite’s internal statistics, which Dr. Sullivan used for this study.)
- From the CareerXRoads 2013 source of hire study: “We examined 185,000 2012 hires. Assume that for every ~100,000 external hires nearly 25,000 of these openings were filled (at least in part) through the company ‘ERP’ (Employee Referral Program). In addition we think it noteworthy that these hires were selected from only ~250,000 total referrals. The ratio of approximately 10 to 1 continues year over year. This year it is 9.9. We estimate that a candidate who has acquired a referral is 3-4 times more likely to be hired.“
Step one is goal setting. Use these posts as guidelines. If you don’t aim for the right target, it doesn’t matter how accurately you hit those them. Here’s another post from Dr. Sullivan advising you on how to set those goals, prioritize them, and evaluate your metrics.
Step two is the hard part: attacking and achieving those goals. Here are some tips and best practices we’ve compiled over time to help you do just that.
If you know of any tips, tools, or best practices we haven’t mentioned here, please start a discussion in the comments.