Employee Management & Engagement, HR Insights & Best Practices, News

Do You Have an Internal Referral Program? Is It Working?

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In terms of your recruitment strategy, are you using employee referrals on a regular basis? There are some very compelling statistics around the use of internal employee referral programs, such as the reduction of hiring costs and increase in retention rates they can afford. But if your organization doesn’t have a system for managing internal referrals, it cannot be all that effective.

If your referral program isn’t working out, or not producing the kinds of results your organization needs to stay ahead, perhaps a temporary staffing model will be a better option. Here’s why your company will fare better with a comparison of temps vs. referrals.

Internal referrals don’t get screened as carefully.

Companies tend to be more lax when it comes to hiring from employee referrals. The assumption is since the person is known and trusted by an existing employee, they should be “good to go.” However, this can be risky because there could be something negative lurking in the referral’s background. Instead, hire pre-screened candidates through a professional staffing agency.

Referred employees may not play well with others.

The fact that a referred candidate knows someone on your team is not an indicator of success with the rest of your team. The person may actually have some existing conflicts with other members of your workforce, stemming from past relationships. This can actually work against your efforts to build a strong team. Instead, hire temporary candidates who must prove themselves during a brief period of time that they are worthy of being part of your team.

Temporary hiring is more flexible.

Comparing hiring through a direct employee referral or by using a temporary service, the benefits of temporary hiring far outweigh direct hires in terms of flexibility. Temporary employees can be hired for short- or long-term projects. They can be assigned based on skills for specific projects and then moved to other teams to fill skill gaps. There’s no need to worry if a temp doesn’t work out well, because they can be replaced vs. dealing with the emotional issues when a referred employee is a disappointment.

On top of the above benefits of hiring temporary workers, there’s no need to track or worry about referral bonuses.

Want to find out more about how hiring temporary candidates can benefit your company? Talk to the staffing experts at TempStaff today!

 

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