If we’re letting you in on a secret, then we’re surprised. Employee referrals are the number one source of quality candidates in the industry. As recruiters, we have had resounding success setting up referral programs for our clients, as well as providing referrals through our own Talent Ambassador Program. Through these, employers are able to place talented people in roles and communities where they thrive.
Referrals are so successful because they benefit everyone involved. Employers get access to better quality candidates, can improve their retention rate through higher employee satisfaction, as well as hire and onboard quicker.
For employees, it’s a case of having a better sense of what they are stepping into with a new employer. And when they get hired, there is a connection to help them learn the ropes quicker and feel at ease in the new role. For those who make the successful referrals, there are rewards to enjoy.
Let’s look into this further.
The Not So Secret Benefits Of An Employee Referral
Attract High-Quality Employees
The current hiring landscape leans undoubtedly in favor of candidates. There’s a high demand for qualified senior care staff to join homes as it stands, with the growth rate of jobs in the industry expected to sky-rocket up by a further 18% by 2028. In short, the talent you are looking for:
- Isn’t always actively searching the market for new roles
- Is looking for something extra that they can’t find elsewhere or in their existing role.
This is where an employee referral can put you in good stead. Your current employees are ideally placed to connect you with the people in their network who have the requisite skills, credentials, personality, and experience to excel while working in your community. They have friends, former colleagues, or ex-college alumni who may have an existing position but can be persuaded to join your home when leveraged off a personal recommendation.
Similarly, the candidates who aren’t actively job searching might ignore the advances of random senior living employers but pay attention to a recommendation coming from someone they know. There’s more substance to the opportunity than just the words of an employer trying to reel them in. In light of this, they can make the move knowing they aren’t throwing away their existing opportunity, rather opening doors to a better one that can shape out to be a long-term career boost.
Referrals and Talent Ambassadors Stay Longer With The Company
Hiring someone who is a great fit for your community usually means they will work there for longer, improving your retention rates..
Improving employee retention for your company is important for several reasons. Firstly, it’s a sign that your team is engaged and satisfied. Anyone considering taking up employment will research how long people stay working there and use this information to decide whether it’s worth dipping their toes in. When compared to job boards and career sites, referrals win hands down. You’re looking at an average retention rate of 65% (higher if you are using employee referral software to deliver results) over one year compared to job boards at 20%.
In turn, this can also result in the employee who made the successful referral staying for longer. This could be because it adds to their sense of accomplishment and participation in the company.
Time Is Money – Referrals Make For A Faster Time To Hire
Hiring applicants who are introduced to your business as an employee referral can reduce the total hiring time considerably. That’s because advertising on job boards takes time and costs money to source candidates.
Once the applications come in, and you can expect to receive hundreds from un-qualified chance-takers, there’s also the matter of sifting through resumes to screen applicants.
However, with referrals, that falls to the side. They are coming to you as pre-qualified candidates who could be a fit for your business. It’s simply a matter of sending out details of the position on your referral program application and waiting for the qualified responses to come in.
It can be the difference of cutting the hiring time from an average of between 39 and 55 days, down to just 14 days.
Reduced Cost To Hire
We mentioned that there are no advertising costs. There are also no general recruiters’ fees.
Now, the costs involved in hiring are to pay the bonus to the person who refers the successful candidate, as well as a professional placement fee.
Given the improved candidate quality, increased retention, reduced time to hire, it’s a winning formula for your senior living business.
The Bottom Line
A successful employee referral is gold as far as Senior Living providers are concerned, or any organization for that matter. If you need help with setting up a referral program or would like to find out about our talent ambassadors and who they can connect to your business, get in touch with us.