Essential Metrics to Check the Effectiveness of an Employee Referral Program

We as of late measured the referral programs of more than 145 organizations for some truly cool discoveries. You may be amazed to learn, for instance, that organizations 4-6 years of age have more regrettable performing referral programs than the rest. 

When you take a gander at the information however, the following inquiry is this: "Well, how might I utilize this to ensure that my referral program works?"  

A decent referral program should give you a chance to slaughter three winged creatures with one stone. In a perfect world, your referrals should help your organization: 

• Hire better individuals; 
• Hire them all the more rapidly; and, 
• Hire them at a lower cost.

Be that as it may, there are many sorts of referral programs, and not every one of them will finish a similar thing. Some referral projects will show signs of improvement quality applicants at a comparative cost, while others may radically diminish cost or time to contract, while keeping quality steady. 

In addition, referral programs aren't one-measure fits-all, and what finishes one thing at one organization won't not work a similar route at yours. Finding the correct one for your organization will take some experimentation. So where precisely do you begin?

To begin with, you have to characterize your referral program objectives 

What are you wanting to escape your employee referral program? Do you think more about procuring better individuals, or employing them speedier, or at a lower cost? 

Once you've addressed that inquiry, you can choose how you need to gauge your advance. To make it less demanding for you, we've recorded some basic referral program objectives, and matched them with valuable measurements for measuring program adequacy. 

For instance:

Goal 1 – Increase employee engagement

Metric: Referrals per employee

What to ask: How many referrals is each employee sending in per month?

Goal 2 – Get better quality referrals

Metric: Interviews per referral

What to ask: How many employee referrals this month have made it to the interview stage?

Goal 3 – Reduce the cost of hiring

Metric: Referrals per job opening

What to ask: How people were referred for the open job on the sales team?

Goal 4 –  Reduce time to hire

Metric: Referrals per month

What to ask: How many total referrals were there this month?

Goal 5 – Hire better quality people

Metric: Hires per referral (net conversion)

What to ask: How many referrals invited to interview are ultimately hired (and how are they performing comparatively)?