If you are currently looking to restructure your recruiting function to keep costs under check, you may want to focus your time and money on processes that yield results the quickest, entail the lowest cost and have the lowest risk of failure. All the recent data on the subject indicates that one option stands and shoulders above the rest. And that is putting in place or upgrading your employee referral programmes to take advantage of the spread of social networks. If your human resources team has still not looked at employee referrals seriously you might be squandering a huge chunk of your work-force budget.
Consider these figures: 50 to 60 per cent of most companies’ operating expenses are work-force related costs. And about 50 per cent of that goes into hiring, training and equipping new recruits. Now if you consider referrals as a sourcing option, it will offer the best application-to-hire time – 29 days for referrals compared with 39 days for job boards and 45 days for career sites – and the best retention rate. Referrals are at No 1 with 46 per cent in retention after the first year compared to 33 per cent from career sites and 22 per cent from job boards (source: Jobvite index 2012). And it is not difficult to imagine that roping in head-hunters or trolling through job sites could hurt your wallet harder than offering quick incentives to the employee who refers a potential recruit. Just imagine the kind of branding value you would derive when hundreds of your own employees talk about the company and its products to their friends, family and their extended social networks! (LOW-COST HIGH-IMPACT RECRUITING IDEAS)
Written By Ankita Rai
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