If you’ve been on the job search for long, you have probably already begun to realize that it really is all about who you know. Having a large network of professional contacts is important for job seekers of all industries. This is especially true in today’s work environment when high unemployment has led to numerous applications being sent in for every open position.
Thus, employee referrals have become an increasingly popular way for recruiters and hiring managers to determine the right candidate for the job. Clearly, those in charge of staffing are more confident in their hiring decisions when the potential employee has been recommended by someone already employed by the company. An infographic released by Jobvite demonstrates the true value of employee referrals and just how beneficial they have become.
I think one of the most impressive bits of information is that, even though only seven percent of the average company’s applicants come from an employee referral, 40 percent of hires are made from this small candidate pool. Twenty-one percent of career site sources are hired (while career sites account for 32 percent of the applications) and 15 percent of job board applicants are hired (while 43 percent of applicants use job boards to apply).
Employee referrals also speed up the hiring process. Check out the breakdown by average number of days until the candidates start date:
- Referrals: 29 days
- Job board: 39 days
- Career site: 55 days
Even better yet, employee referrals typically stay with the company longer, too. After three years, 47 percent of referrals are still with the company. While only 39 percent of career site applicants and 14 percent of job board applicants stay with the company after three years.
Employers aren’t the only ones who benefit from employee referrals though. According to the survey, 69 percent of companies said they provide compensation to employees who make a successful referral.
Check out the rest of the statistics about employee referrals in Jobvite’s infographic below.
What are some other benefits of employee referrals? Have you ever landed a job because of a referral?
