October 18, 2016 | Written by: Chris Chesterman
Categorized: Events | Talent Acquisition
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The power of employee referrals:
- Employee referred job candidates are 3-4 times more likely to be hired, remain with the company longer and are 25 percent more profitable than any other hiring source.
- In addition, employee-referred job candidates are the lowest cost to hire and are 26-35 percent faster to hire than those sourced from job boards and career sites.
- To realize these benefits, leading companies have set aggressive goals to increase referral hiring from a 15 percent average to 50 percent annually.
Why we don’t get more referrals easily?
Many companies have launched elaborate referral campaigns and incentives programs to drive employee participation. While these have been effective to a certain extent, they require the company to constantly market and send reminders to drive employee participation. Once motivated, the employee needs to educate themselves on the open job positions and review their network for potential candidates. Employees tend to educate themselves on job openings closest to their field of interest and review potential job candidates from their strongest connections. These self-limiting factors prevent companies from fully capitalizing on their employees’ networks.
Reppify Recruit to the rescue
To counter these problems, Reppify was founded in 2009 to automate the employee referral process. The company’s solution proactively matches an employee’s connections to open positions within the company based on skill sets and a uniquely designed ready-to-leave score. All connections with strong matches to open positions are presented to the employee to either recommend or not. This new system allows the company access to the employee’s full network and focused the employee’s time on his or her true value to the recruitment process – determining if the candidate is a good fit for the company and the position.
Reppify was able to demonstrate that their approach worked to generate substantially higher numbers of employee referrals while leading to better job matching. This is a win-win situation, making it easier for candidates to find jobs they’re a good fit for and giving the company better referrals faster to save time and money.
Understanding the value of leveraging employee referrals and Reppify’s ability to streamline the process through advanced analytics and predictive modeling, IBM decided to leverage Reppify to help its nearly 400,000 employees fill the 8,000-plus open positions each month. Within the first three weeks of launching the program, over 60,000 IBM employees signed up to use Reppify, generating over 100,000 referrals and a nearly 60 percent candidate response rate.
Partnering for better referrals
IBM is not just a Reppify client, however. In 2016, the two companies formed a partnership to integrate Reppify’s offerings into IBM Kenexa Talent Acquisition Suite (TAS). Together, the solutions offer an integrated suite of recruitment solutions augmented by proven consumer marketing tools and practices. The powerful combination allows users to build proactive pools of best-fit talent, market to and nurture candidates, deliver an exceptional candidate experience on any device and get new hires up to speed and productive quickly.
Making Reppify software available through TAS helps delivers innovative capabilities through IBM Kenexa’s Open HR platform. Even more importantly, the integration of Reppify’s solution into Kenexa’s applicant tracking system (ATS) means results in a seamless experience (and thus time savings) for recruiters and candidates alike. This partnership is a game-changer for companies of every size and stripe, letting them get much more value out of their referral programs.
Attending HR Tech World Congress? Join IBM at booth #315 to hear the latest from IBM and Reppify during one of the many demo’s in our theatre:
- Day 1 – 25th October, 12:50pm
- Day 2 – 26th October, 10:40am
Looking forward to meeting you there – #HRinEurope