careerxroads survey - evolving referral practices

Referrals 2015CXR

Brown Bag Lunch Webinar

Oct 9, 2015

Chris Hoyt | Mark Mehler | Gerry Crispin

732-821-6652 [email protected] www.CareerXroads.com

mailto:[email protected]

ABB Enterprise Software AbbVie ADPAgilent Amazon Amerihealth CaritasAmtrak Aramark Astra ZenecaAvery Dennison Bank of America BASFCampbells Capital One CargillCatamaran CDK Global CH2M HillCharlese Schwab Cigna CitrixComcast ConAgra Foods CorningCummins CVS DaVitaDeloitte Dell DeluxeDisney Edward Jones Eli LillyEnterprise Holdings EY FedExFidelity Fifth Third GEGenentech Gulfstream HalliburtonHerman Miller Hilton IFFInformatica Ingersoll Rand IntuitJohnson & Johnson JP Morgan Chase KeysightKimberly Clark L Brands Lockheed MartinMacy’s Manulife Financial Marathon OilMarriott International McGladrey MerckNationwide Insurance Navistar NestleNike Ortho Clinical Diagnostics Peabody EnergyPepsiCo Pitney Bowes PNNLPolaris QVC Schneider ElectricSedgwick Shell Southern California EdisonSprouts State Farm Insurance StrykerTarget Thermo Fisher Time WarnerTimeWarner Cable TiVo Two Sigma Verizon Wireless Walmart WegmansWells Fargo Whirlpool Williams CorporationYum Brands

Referrals Webinar - Oct 9, 2015

2015 Colloquium Members

Are we operating on current or old data?


Back Story


Is it a “Formal” program?

Formal Implementation


Yes, for most positions (No Bonus) 7.4%

–Yes, but only for specific positions

(No Bonus)

0.0%

–Yes, for most positions (w a Bonus

of some kind))

32.4%

–Yes, but only for specific positions

(w a Bonus of some kind)

16.2%

–Yes, for all positions (with and

without Bonus)

39.7%

–No, but we did have one. 2.9%

–No, Never 1.5%

Do you have an Employee Referral process?

(formal or informal)

(Bonus or Not?) Referral Process

} ● About ½ the

respondents

have a bonus


Referrals/Position= ~4

How many

NEW HIRES this

year?

Total REFERRALS

The Referral Landscape


0%, N/A 1-5% 6-10% 11-15% 16-20% 21-25% 26-30% 31-35% 36-40% 41-45% 46-50% 51-55% 56-60% + 60%

EMPLOYEES

0.00% 10.53% 2.63% 5.26% 15.79% 13.16% 15.79% 10.53% 13.16% 0.00% 5.26% 0.00% 0.00% 7.89%

Alumni 36.36% 33.33% 9.09% 9.09% 9.09% 6.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Candidates

NOT

Employees

40.63% 25.00% 3.13% 6.25% 3.13% 3.13% 6.25% 6.25% 3.13% 0.00% 3.13% 0.00% 0.00% 0.00%

Sourcers

asking "Who

do you know?"

25.71% 25.71% 14.29% 8.57% 8.57% 2.86% 5.71% 2.86% 0.00% 0.00%

0

5.71% 0.00% 0.00% 0.00%

Vendors 33.33% 39.39% 18.18% 3.03% 6.06% 0.00% 0.00% 0.00% 0.00% 0.00%

0

0.00% 0.00% 0.00% 0.00%

Customers 54.55% 24.24% 9.09% 6.06% 3.03% 0.00% 0.00% 0.00% 3.03% 0.00%

0

0.00% 0.00% 0.00% 0.00%

% Referrals by Source


% Referrals by Type

Manager/Director


Program Promotion

PROMOTION (Internal): How often do you

promote your referral program to employees

throughout the year? ● Program is only promoted by role

and specific business unit

campaigns

● Spot promotions.. Referral Blitzes

● Posters hang on some walls.

● We just launched Taleo social

sourcing (Talent Vine), otherwise it

would be infrequent at best

● Formal communication 1x, informal

talking recruiter to employee or

manager

is ongoing

● Notifications are sent out with new

job openings

● Only in emergencies -need to be

better

● Intranet posting, recruiters email

signatures


We have no resource

available to educate

employees about our

referral program.

7.69%

The "How did you learn

about us?" field in the

employment application.

51.28%

Mentioned in corporate

blogs.

20.51%

Described on the

company website, career

pages or other company

social media channels.

53.85%

Sources of hire details

and #s are published on

the company website or

related social media

channels.

10.26%

Discussed during

candidate interviews.

35.90%

Discussed when, or

immediately after, an offer

is accepted.

41.03%

Responses

Other (please specify)

23.08%

BRANDING (External): How do Candidates learn about your referral program?

External Branding

● Described on the company

intranets, by division

● Mentioned specifically by the

recruiters, calls to new hires

● New Hire Communication

● Marketing campaigns

● As needed by depts hiring, or as

management wishes to

communicate

● New hires get information during

orientation

● Part of our ATS

● Not done well or consistently

● Mentioned during New Hire

Orientation

https://www.surveymonkey.com/analyze/J8gqlKWdn6DzCeTikEvrUYo2cpiOcUFfp4ytTXSR6C4_3D


MECHANICS: What does a candidate or referrer need to do to

ensure participation in the employee referral program?

● Associates submit referrals

online through associate

portal to posted position

Program Mechanics


TECHNOLOGY TOYS: What technologies do you use to augment your referral program?

None 10.26%

Internally accessible via an

employee portal.

48.72%

Part of (or bolted to) our ATS. 64.10%

A third-party stand alone tool

accessible by candidates.

2.56%

Internally developed stand-alone

software.

7.69%

Content leading to employee

referral built into our career

website

12.82%

Social media apps specifically

used to engage employees as

referrals

10.26%

Responses

Other (please indicate specific

tools/vendor used).

15.38%

Technology for Referrals

● Bonus programs with payroll

● EmployUs

● Role Point

● Unknown at this time

● Taleo

● We are just starting the

deployment of smart recruiter

for ER



TECHNOLOGY TOYS: Please find the name of your referral software

vendor(s) and select your satisfaction level with their service.

Technology for Referrals


Dedicated Recruiter/Recruiting Team

Dedicated Human Resources: What is the dedicated labor assigned

to your Referral Program?

Human Resources


CANDIDATE EXPERIENCE: Do you respond differently to referred

candidates at any stage of the recruitment process?

The Candidate Experience


Referred Candidates are required to

indicate the name of the Referring

Employee in the application process.

52.94%

Referred Candidates are

dispositioned faster than other

candidates.

50.00%

Referred Candidates are promised an

interview.

0.00%

Referred Candidates are promised

status.

11.76%

Referred Candidates can check their

own status via ATS.

23.53%

Referred Candidates are informed

when rejected.

61.76%

Referred Candidates can request and

be given feedback.

20.59%

Responses


20.59%

The following

CANDIDATE

elements are a part

of your ERP


- Referring team member

receives notice if their referral is

selected. As well as notice to

when their referral is expiring.

- Referral is sent a direct link to

apply versus having to go to the

website. They then receive a

"thank you" after submission.

- Referred candidates are

promised an interview in

sales and technology

positions

- Referring employee can see the

status on his/her referrals online

- We reach out (either phone or

email) to every referred

candidate

- Not treated any differently. I

recommend treating them

differently.

- Referred Candidates are

researched more thoroughly

than other candidates

- Referred candidates are

contacted by a recruiting

within 48 hours.



The following EMPLOYEE elements are a part of your ER Program.

Referring employees receive

acknowledgment/thank you from

Talent Acquisition.

72.22%

Referring employees receive

acknowledgment/thank you from their

own leadership.

0.00%

Referring employee must submit

initial candidate application/form for

referral to be accepted.

72.22%

Referring employee is surveyed

about the quality of their relationship

to their referral.

13.89%

Referring employee is informed of

referral status (contact, interview,

disposition) throughout the process.

25.00%

Referring employee's manager is

informed when referral is hired.

13.89%

Responses


11.11%


- Referring employee's

manager is informed when

referral is hired.

- Referring employee is

informed of referral status

(contact, interview,

disposition) throughout the

process.

- Referring employee is

surveyed about the quality of

their relationship to their

referral.

- Referring employee must

submit initial candidate

application/form for referral to

be accepted.

- Referring employees receive

acknowledgment/thank you

from their own leadership.



Rate the DIFFICULTY of submitting a referral to your company.

1 - GREAT (quick, clear and

simple)

30.77%

2 - GOOD (easy, but could be

better)

23.08%

3 - OK (some frustration but

works)

30.77%

4 - BAD (confusing and/or time

consuming)

10.26%

5 - HORRIBLE (difficult and/or

source of dropoff)

5.13%

The Referral Process


BONUS - GENERAL: Do you offer bonuses for Employee Referrals that are

hired? Please check all that apply.

Sometimes - only certain job

classifications and/or levels are eligible

for referral rewards.

23.08%

Sometimes - it is decided in advance if

the job is eligible for a reward for

referrals hired.

23.08%

No, our program is a basic "Attaboy". No

monetary incentive or product or service

awards are given.

7.69%

Yes, EVERY referral hire has an award. 53.85%

Yes, a raffle or contest is periodically

used to incent referral behavior.

12.82%

Yes, even those making referrals that do

not become hires get something or have

a chance to win something.

7.69%

Referral Bonuses

BONUS - SPECIFIC: If using rewards that are NOT monetary, please list them. Examples

may include vacation days, donations to favorite charity, etc.

● iTunes gift card and raffle for iPad for hires

● $1,500 for non exempt hire, 2K for exempt hire- grossed up

● It can be mixed outside the US based local regs. Within the US, it's

always cash

● $23,000 Polaris Slingshot given away as grand prize

● For our retail stores we do a points system that associates can trade in

for gifts

● Charity donations for senior level people not eligible for monetary

rewards

● $10k, vacation days


Referral Bonuses

–$0– $100– $250– $500– $1,000

–

$1,500– $2,500– $5,000– More

than$5,000–

–A Typical Non-

Exempt position

10.81% 0.00% 13.51% 40.54% 18.92% 8.11% 2.70% 2.70% 2.70%

–A Difficult to fill

Non-Exempt

position

10.81% 0.00% 13.51% 40.54% 16.22% 10.81% 2.70% 2.70% 2.70%

–A Typical Exempt

position

10.81% 0.00% 2.70% 13.51% 29.73% 16.22% 18.92% 5.41% 2.70%

–A Difficult to fill

Exempt position

5.56% 0.00% 0.00% 11.11% 22.22% 16.67% 19.44% 19.44% 5.56%

–A

Director/Executive

position

13.89% 0.00% 2.78% 11.11% 16.67% 19.44% 16.67% 8.33% 11.11%

–A Contingent or

Part-time position

76.47% 5.88% 5.88% 0.00% 5.88% 0.00% 2.94% 0.00% 2.94%

BONUS - SPECIFIC: Approximate $ value of your referral hire bonus


Referral Bonuses


BONUS - SPECIFIC: Are bonus amounts for diverse candidates (gender,

race, etc.) ever different than for non-diverse candidates?

i.e. job families adversely impacted.

Referral Bonuses


N/A. At Hire. Two

weeks

after hire.

One

month

after hire.

Three

months

after hire.

Six

months

after hire.

One year

after hire.

More

than one

year after

hire.

Full

Payment:

7.89% 7.89% 2.63% 34.21% 44.74% 2.63% 0.00% 0.00%

Partial

Payment

(Initial):

93.33% 6.67% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Partial

Payment

(Final):

93.33% 0.00% 0.00% 0.00% 0.00% 6.67% 0.00% 0.00%

BONUS: Employee is paid….

Referral Bonuses


BONUS - TAX TREATMENT: Does your organization gross-up the

rewards/payments so associates receiving the reward do not have to pay any

taxes on it?

Referral Bonuses


Restricted to Candidates referred

within documented process (ATS,

etc.) prior to hire date.

8.33%

Restricted to the referring

employee being in good standing

at time of payout.

8.33%

Restricted to "eligible" employees -

certain employee groups such as

HR, Staffing, and/or Executives are

non-participants.

69.44%

Responses


13.89%

BONUS - RESTRICTIONS: Do you restrict award payments to any of the

situations below, please indicate the most important if more than one apply?

● VP or above, referring

manager over same

department, retired

employees

● FTE only can participate

● Must be active employee to

receive the bonus.

● TM Referral form

required/validate within 30

days of Hire, and both

Referring and Referred TM

must be active at the 90-day

mark.

● Geography - some countries

offer a referral bonus, others

don't

Referral Bonuses



BONUS - WHO PAYS: Who is responsible for absorbing the cost of the

employee referral?

● Corporate pays for initial

iTunes.

● The hiring manager’s division

pays bonus for hard to fill skills

in their department.

● Business Unite

● There is a central budget

within HR within each division.

● Combination, some business

pay and in one business

staffing does - this is being

harmonized.

● Referring Employee’s

Department (payroll system

restriction)

● Referrer’s manager.

Referral Bonuses


QUALITY CANDIDATE: Do you track the quality of referrals in a way to

differentiate those more likely to lead to a successful hire, higher

performance or improved retention?

Quality of Referral


QUALITY - REFERRER: Do you in any way track the quality of referrals back to the

employee referring them?

No - We do not monitor the quality

of referrals in connection to the

referring employee

84.62%

Yes - We monitor the quality of

referrals from each employee but

DO NOT prioritize consideration for

their referrals based on scores

12.82%

Yes - We monitor the quality of

referrals from each employee and

we DO prioritize consideration for

their referrals based on scores

2.56%

Quality of Referral


INTERNATIONAL

Global Referral Programs


What else can you share about this subject?

● Increasing our ERP hires is a major goal for us this year with several projects planned for 2016.

● Our program is very new, so I expect some of my answers to change as it matures.

● I have only been with this company for 3 weeks and therefore can only provide the information I am

currently aware of.

● Our hire numbers include hourly hires- which are not included in our referral program at this time.

● We are in the process of launching a new ERP program at [Company] and I am the Exec Sponsor of

the project.

● We are moving to a new ATS and are shocked that these technologies have not created anything new

or special to support referrals.

Round Table

Good Hunting!

Chris Hoyt | Mark Mehler | Gerry Crispin

732-821-6652 [email protected] www.CareerXroads.com

mailto:[email protected]

careerxroads survey - evolving referral practices

Recruiting & HR