GITNUX MARKETDATA REPORT 2024

Employee Referral Programs Statistics [Fresh Research]

Highlights: The Most Important Employee Referral Programs Statistics

  • 40% of all hires come from only 7% of applicants, making employee referrals the most effective way to hire.
  • Referral candidates receive offers at a higher rate (56 % in 2021) than other sources
  • 40% of all hires come from only 7% of applicants, making employee referrals the most effective way to hire.
  • CareerBuilder is the largest online career site in the U.S., with 26% of external hires generated from employee referrals.
  • Referral hires have a median employment duration of 38 months, 70% higher than non-referral hires (22 months).
  • Referral hires are more likely to stay loyal to a company for 3 years or more (47%) compared to hires from job boards (14%).
  • 55% of companies say that hiring a referred employee is less expensive than hiring a non-referred job candidate.
  • Referral hires cost 41% less over the life of the hire than non-referral hires, making them a cost-effective option for employers.
  • CareerBuilder has an average of 15 referrals per hire,
  • Referral candidates receive offers at a higher rate (56 percent in 2021) than other sources
  • Salespersons are the most hired position from employee referrals
  • Salespersons are the most common hires through employee referral programs.

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Employee referral programs are a great way to attract top talent to your organization. Not only do they help you find qualified candidates quickly and cost-effectively, but they also help you build a strong employer brand.

But how successful are these programs? In this article, we’ll take a look at some of the most recent employee referral program statistics to get an idea of how effective they are. We’ll also discuss some of the best practices for creating and maintaining a successful referral program.

Employee Referral Program: Most Important Statistic

40% of all hires come from only 7% of applicants, making employee referrals the most effective way to hire.
Referral hires have a median employment duration of 38 months, 70% higher than non-referral hires (22 months).
Referral candidates receive offers at a higher rate (56 % in 2021) than other sources.

Employee Referral Programs: Statistics Overview

40% of all hires come from only 7% of applicants, making employee referrals the most effective way to hire.

This highlights the effectiveness of employee referrals as a hiring tool. It shows that employee referrals are a great way to quickly and efficiently source quality candidates, as they are more likely to be hired than applicants sourced through other methods.

CareerBuilder is the largest online career site in the U.S., with 26% of external hires generated from employee referrals.

There is an effectiveness of employee referral programs in helping companies target and attract their most important asset – their people.

Referral hires have a median employment duration of 38 months, 70% higher than non-referral hires (22 months).

Referral hires are more likely to stay employed for longer periods of time than non-referral hires. This suggests that referral programs are an effective way to recruit and retain employees, making them a valuable tool for companies looking to increase employee retention.

Referral hires are more likely to stay loyal to a company for 3 years or more (47%) compared to hires from job boards (14%).

Referrals are more likely to fit the company culture and values better than other sources of hire, and are more likely to stay in their positions for longer periods of time.

55% of companies say that hiring a referred employee is less expensive than hiring a non-referred job candidate.

Employee referral programs can be a cost-effective way to hire employees. This could be an incentive for companies to implement an employee referral program, as it could help them save money on recruitment costs.

Referral hires cost 41% less over the life of the hire than non-referral hires, making them a cost-effective option for employers.

Referral programs can be beneficial for employers, as they can save money in the long-term.

CareerBuilder has an average of 15 referrals per hire, which is an important statistic for Employee Referral Program Statistics as it provides insight into the effectiveness of referral programs in the hiring process.

Referral candidates receive offers at a higher rate (56 percent in 2021) than other sources.

Referrals are an effective way to source candidates. This could be beneficial for businesses, as referrals are often more cost-effective than other sources.

Additionally, referral candidates may be more likely to accept offers, as they have already been recommended by someone in the company.

Salespersons are the most hired position from employee referrals – this is important as it shows that employee referrals are an effective way to recruit for sales positions.

Salespersons are the most common hires through employee referral programs.

This method is an effective way to hire salespersons. It also provides insight into which roles are most likely to be filled through employee referral programs, which can help organizations better allocate resources and target their recruitment efforts.

Conclusion

Employee referral programs are a great way to increase the quality of hires and reduce recruitment costs. The statistics presented in this blog post demonstrate that employee referral programs are effective in achieving these goals.

Companies should consider implementing an employee referral program to reap the benefits of increased hiring quality and reduced recruitment costs.

References

1 – https://theundercoverrecruiter.com/infographic-employee-referrals-hire/

2 – https://cdn2.hubspot.net/hub/77464/file-17173226-pdf/docs/careerbuilder_referral_madness_ebook.pdf

3 – https://www.icims.com/blog/how-employee-referrals-impact-retention/

4 – https://www.jobvite.com/blog/sourcing/4-reasons-to-invest-in-employee-referrals/

5 – https://clutch.co/hr/resources/5-employee-referral-program-strategies-hire-top-talent

6 – https://www.icims.com/blog/how-employee-referrals-impact-retention/

7 – https://cdn2.hubspot.net/hub/77464/file-17173226-pdf/docs/careerbuilder_referral_madness_ebook.pdf

8 – https://www.glassdoor.com/research/referral-candidate-diversity/

9 – https://theundercoverrecruiter.com/infographic-employee-referrals-hire/

10 – https://99firms.com/blog/employee-referral-statistics/#gref

FAQs

What is an Employee Referral Program?

An Employee Referral Program is a program in which current employees are incentivized to refer qualified candidates for open positions at their company.

What are the benefits of an Employee Referral Program?

Benefits of an Employee Referral Program include cost savings, improved quality of hire, and faster time to hire.

How do I refer an employee?

To refer an employee, you will need to provide the company with the candidate's contact information, resume, and any other relevant information.

What is the process for referring an employee?

The process for referring an employee typically includes submitting the candidate's information, having the candidate complete an application, and then having the candidate go through the interview process.

How do I know if my referral was successful?

You will know if your referral was successful if the candidate is hired by the company.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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