Relying on your employees’ eye for talent

To succeed, employee referral programs should come with training and communication plans
By Jacques Gaumond
|Canadian HR Reporter|Last Updated: 09/18/2006

As the labour market tightens, more and more employers are turning to their own employees to help recruit top talent.

Employee referral programs (ERPs), where employees recommend qualified friends, relatives or colleagues at other companies, can be an excellent source of candidates. Many ERPs also offer something for employees. For the employee whose recommendation leads to a hire, there are incentives such as cash, travel or extra time off.

There are many benefits for the company as well. Employees who are hired on through referrals tend to stay with the company longer than other candidates, according to an Ohio State University study. The 2000 study,