Referral Programs - Just The Facts, Please (Part 2 of 2)

Following is the second part of my blog on referral programs. Clearly, it’s absolutely important that we recognize the facts about referral programs, because they are becoming an increasingly important part of the US employment and talent acquisition landscape. As a reminder, the facts presented below were discovered by our own research (and will be published in-full in Hub’s upcoming eBook), while others were found in a fascinating paper by Burke, Cowgill, Hoffman & Housman called “Toward an Understanding of Employee Referral Networks” (Dec 2013)  

My previous blog listed Facts 1-10. Here are numbers 11-20.

11.   Referred candidates are more likely to be hired.

12.   Referred candidates are more likely to accept an offer for employment.

13.   Referred workers have lower turnover.

14.   Referred workers earn higher wages than non-referred workers in the high tech industry - and produce higher profits per worker.

15.   Larger referral bonuses do produce more referrals.

16.   Employees are less likely to quit after they’ve made a referral.

17.   38% of business leaders think that their referral program is not effective enough.

18.   Referred employees are substantially less likely to quit than non-referred employees.

19.   42% of workers said that they learned about their job using a network of friends.

20.   70% of blue collar workers made use of their social network when finding a job. The number drops to 44% for white collar workers.