The primary goal of incorporating an employee referral program into the hiring process is to introduce qualified candidates for open roles, but there are several other benefits to consider. Boost quality of hire Existing team members have a grasp of the company culture, are familiar with the organization’s mission, and have a deep understanding of the business structure. Armed with this knowledge, employees can refer the right candidate for both the job and the business as a whole. Improve employee retention rate An ill-suited candidate leads to churn and wasted resources as they struggle to complete the job effectively. However, a well-suited candidate is reflected in a high retention rate. One study shows that only 25% of employees sourced from job boards remained with the company for longer than two years, while 45% of referrals stayed for four years (or more). Save time and money The talent pool has expanded in the modern working world, and quality candidates often have more power than organizations looking to hire. In turn, human resources have to commit more time and money to the recruitment process. Employee referrals serve as a pre-screening process, saving time on the sourcing and screening phase of hiring new employees. It saves time and money compared to more costly and time-consuming recruitment strategies. From here, successful candidates can begin the onboarding process and start filling out the job description. Build employer brand Job seekers are more likely to trust the experience of someone in their existing network than the elaborate promises of hiring managers. When an employee speaks to potential candidates and shares their own experiences, it boosts business brand awareness and attracts top talent for future job openings. Improve diversity Using an employee referral system can also improve diversity. If the organization intends to improve workplace diversity, then hiring managers should incorporate these goals into their referral program. For example, ask explicitly for diverse leads and referrals and approach minorities for candidate recommendations.