From the Offer to the Seat, It’s the ‘Lack of Love Tour’

CareerXroads Brown Bag Lunch Webinar

REFERRAL PRACTICESJanuary, 2012

BACK STORYEvery month we survey our CareerXroads Colloquium members & friends on a subject they think is of interest. We design the Qs for speed…i.e. get the info within 48 hours. We do not intend these mini-surveys to be the last wordon a subject- in fact, we’ll often we’ll raise even more questions than we answer.

The ‘bench’ (in this case n=50) from large, highly-competitive firms is then used toengage a discussion among the respondents who are otherwise always anonymouson an online, open-mike webinar (January 27, 2012) and, later on, we’ll use the data to add to scenarios we create for our Colloquium face-to-face / peer-to-peer events.

We do at least one survey every year on Referrals- it’s a subject of constant interest and we’re convinced its impact and reach will continue to grow as the shift from employer initiated referrals is overtaken by candidate initiated referrals. As emergingSocial Media technologies become more sophisticated, we think it is inevitable and are fascinated by the possibility of several unintended consequences.

Gerry and Mark, January, 2012mmc@careerXroads.comhttp://www.careerxroads.com

70.5%6.8%

4.5%

9.1%

6.8%2.3%

85.1% 14.9%

~ 9530 hires/year

5.7%

11.4%

2.9%

5.7%

2.9%

11.4%

11.4%

25.7%

22.9%

~ 217,738 Applications/Year18,144/Month

16.1%19.4%

22.6%

9.7%

3.2%

9.7%

16.1%

3.2%

16-20% referral hires

8.5 Companies

8.5 Companies

5.7 Companies

14 Companies

5.7 Companies3 Companies3 Companies

5.7 Companies

23 Companies

23 Companies

31-35% referral hires

11-15%

6-10%

21-25%

26-30%referral hires

more than 60%46-50%41-45%36-40%

% EMPLOYEE REFERRAL HIRES / 100 Companies

Distribution of Firms by% Employee Referrals

Where do you Fall?

Where Do You Fall?

(Note: about 1 in 5 firms will get an additional 3+% referral hires from Alumni and/or Vendor)

27.96% Employee Referrals

9.5%

9.5%

9.5%

9.5%

9.5%

4.8%

4.8%

4.8%

23.8%

14.3%

10.4 Referrals Yields 1 Hire

Rehires

Referrals

College

Referrals

Career SiteReferrals

Sourcer

Referrals

Job Boards

Referrals

Social Media

Referrals

Hidden (unmeasured) Influence that Referrals have on other ‘Sources Of Hire’ (this is coming out of our next SOH study which we’ll publish in February.

Bonus - General

What was the Total $ (order of magnitude) you spent this past year on ER

What was the Total $ Value for a Referral Hire

aaa

Contingent/Contract employees are not eligible. [92.0%]

Executives are not eligible. [88.0%]

PEO employees i.e. cafeteria workers under vendor mgmnt

are not eligible. [88.0%]

Mgrs not eligible if they refer to their own position. [76.0%]

Only Candidates referred w/in documented process (ATS)

prior to hire date. [72.0%]

Human Resource employees are not eligible. [72.0%]

Restricted to Referring ‘ees in good standing at payout.[52.0%]

Part-time employees are not eligible. [28.0%]

From our ‘ees who are informed about the program. [81.5%]

The "how did you learn about us?" field in the employment

application. [59.3%]

Within the FAQs on the Career Site [37.0%]

Content in Benefits pages on the Career Site [25.9%]

Source of Hire details published on the Career. [25.9%]

Discussed on Social Media sites i.e. Linkedin, Facebook, Twitter,

etc. [25.9%]

Other. [22.2%]

Mentioned periodically in Corporate blogs. [18.5%]

The person (i.e. employee) referring the candidate

must take some action (i.e. filling out an online form)

[42.3%]

.The candidate being referred must take some action (i.e. indicate who

referred them in the source of hire field on the

application).[11.5%]

Both the candidate being referred and person (employee) referring must take

some action.[46.2%]

Part of (or bolted into) our ATS [71.4%]

Internally accessible via an Employee Portal [60.7%]

Social media apps specifically used to engage employees as referrals

i.e. Facebook, Twitter,etc. [14.3%]

None- we're still pushing paper [10.7%]

Internally developed stand-alone software [7.1%]

Third-party stand alone tool accessible by candidates [3.6%]

Content and interactivity built into our Career Website

[3.6%]

“If referral completes an online application we commit to reviewing the application and

conducting a phone screening conversation.”

“Executive referrals and client referrals receive a phone screen minimally and may have a face to

face interview.”

“Our commitment is that we'll follow up with the referred candidate.”

“Referrals are routed to recruiting team daily, recruiter focuses on and looks at all referrals.”

“Courtesy follow up phone call.”

“Contact all ER within 2 calendar weeks.”

NO - 61.5%

YES – 38.5%

All referring employees receiveA “thank You”. [85.2%]

Employee is informed after offer is accepted. [55.6%]

Employee is informed after staffing contacts referral. [ 33.3%]

Employee is informed when their referral is interviewed. [29.6%]

Employee is informed after

rejection is sent. [29.6%]

Other [29.6%]

Employee is informed after offer is made. [25.9%]

Employee is surveyed about quality of relationship to referral. [18.5%]

Employee's boss is informed after offer is accepted. [11.1%]

All referring ees get entered into a quarterly drawing regardless of whether or not their referral is hired

Using the ATS, Hire/Rejection is notified to both referral and candidate at the same time

Employee can log into portal to review referral's status (Reviewed, filed, hired)

Employees who make referral hires are highlighted in communication through internal emails/newsletters. They are also recognized at awards dinners for high performers.

Since our program is very global, privacy issues have to be addressed.

We have an Exempt ee dedicated F/T to ERP.

We have an F/T Exempt ee dedicated to Referrals part-time.

We have a Non-Exempt ee dedicated F/T to ERP.

We have a Non-Exempt ee dedicated to ERP part-time.

We have a P/T or contract eededicated to Referrals.

No one is dedicated to ERP & we split responsibilities up among the team.

53.6%

3.6%

3.6%14.6%

25.0%

NO, We do not have a

'refer a friend' button/link.

[44.4%]

YES, We do have a refer-a-friend link

AND we collect information about its use but never act on

the information. [11.1%]

YES, we do have a refer a friend

link, collect data and act on the data. [7.4%]

YES, We do have a refer-a-friend link.

However, we do not collect information about those who use it or the people they send it to.

[37.0%]

INTERNATIONAL REFERRALS: Have Now or Have an Interest

For highly technical & difficult to fill roles we will often advertise campaigns with an increased referral bonus (i.e. $10,000)

In the past, there was no standardization- change with the business unit and/or location. As a function, Talent Acquisition is looking to review this channel of candidates and revamp/re-launch a company-wide program.

We do have different programs country by country so I've answered these questions for the US program. We do restrict to "salaried" or what we call indirect labor employees/roles.

The program is restricted for internal employees and are made to submit referrals online as a policy to track referrers. we ensure payouts are made on or before 90 days from the onboarding date.

We have a working employee referral award program in Australia. Working on building one now that will work Globally and will be administered through our ATS [Kinexa].

Non exempt positions are typically not eligible.

Referrals amount are differentiated based upon level - 2VP and below - $500, VP and above - $1000. Dollar amount differ globally. We also run special campaigns for higher level, difficult to fill roles - award may go up to $3,000

We just need a full time resource to manage this program. Have recently added JobVite to the mix of tools,

Our bonus is $1000 for non-exempt, $1500 for exempt, and $2000+ for hard to fill designation.

We just launched new program in October that included TalentVine to enable our employees to leverage their social and professional networks.

We launched new promotional strategy which includes a 'stay on the desk' giveaway. Tthe bonus ‘checks' to each employee are presented on the floor. We rake a picture of the presentation, then provide them with a program branded picture frame. We also just started quarterly giveaways for participants and we are starting an 'ambassador' program.

Our bonus amounts vary from $1000-$4000 for exempt positions, based on the position level.

We have a national ERP referral program with set payouts for all FT and PT referrals from group to group (operation to operation) and then each operating group set's their own "in group" referral program including pay out amounts, contests, promotions, etc.

We are in the process of focusing our efforts this coming year on more consistency across the globe for our program. This includes payouts processing and administration and adding on a user interface that is easier than Taleo. Payouts to individuals that are contract or external to the company are not being considered at this time.

As a company that is consistently recognized by it's employees as a 100 Best company to work for, our employee referral statistics are awful.

We're also curious to know how companies might be rewarding diverse referrals that get hired.

We are in the approval stage of a new ERP, which will be launched soon. Our hopes are to have the "Refer a Friend" and the BrassRing tool in place before we market the new ERP

We are in the process of developing an ERP that will be based on points earned.

Our Field based employees yield a $5000 bonus to their referrers. We also check with the Hiring Manager as a quality check to confirm if they agree that their new hire was referred by the referrer placed on the new hire's application.

We also have quarterly drawings for iPads to allow additional recognition and publicity about the ERP