HOW TO CREATE AND MANAGE A CONTINGENT WORKFORCE REFERRAL PROGRAM

Temporary and temporary employees are drawn from staffing agencies. But with increasing skill gaps making it difficult for organizations to reach top talent, companies are starting to look beyond traditional channels to recruit irregular workers.

Optimal workforce management programs now employ a combination of vendor, staffing, and internal hiring processes to acquire talented and highly skilled workers. These internal hiring methods include talent pool formation, direct sourcing and many more.

Another method that your company can best use to increase your potential employee performance is through an employee referral program. In this blog, we'll take a look at what an employee referral program is and how you can use it.

What is an employee referral program?

The Employee Referral Program is an official program created by employers to encourage employees (and future physicians) to suggest applicants for open positions. In this case, your employees will refer workers to temporary positions among potential employees in your company.

The program works by promoting projects for employees and provides an easy way to present references to hiring managers, which can be done through paper or online referral systems. It is possible to target workers that you know have strong networks with talented people in your industry, or may work with competitors first.

In many cases, workers may receive a bonus if the referred applicants are hired.

Why should you consider developing an employee referral program?

Employee referral programs benefit both employers and workers. As employees are rewarded for referrals, an employee referral program can increase employee satisfaction, make them feel valued in your business, and increase loyalty to your company.

At the same time, referral candidates are often hired the best for your organization, as employees typically refer only to candidates who are suitable for a specific position, have a work ethic, and value their company Match with. Not only you but it also gives you another potential staffing stream outside the staffing agency, helping your talent reach the top.

How to create your employee referral program

Creating a successful employee referral program that actually saves your organization time and money is not as easy as letting your workers know that you are looking for candidates for potential positions and if offered a bonus.

Your employee referral program should be strategic. You need to establish objectives for your program, leverage technology to ensure full employee performance, and develop ways to analyze the performance of employees you specify.

There are some important things to keep in mind when creating your employee referral program:

Position your company as "the employer of your choice": To obtain truly excellent referral candidates, it is imperative that current and prospective employees are satisfied with their professional work. The happier they are, the better your referrals. To ensure that this is the case, you must bring your organization into this position. You can read our blog, 5 tips on how to become an "employer of choice" for temporary workers for more advice.

Make sure you invest in an MSP or VMS to successfully manage your potential workforce: When building your employee referral program, it is important to be centralized and consistent in your organization. If not, different managers in different departments will cheat your organization's recruitment policy by paying different rates for temporary workers.

This lack of control over temporary workers results in very high costs and no disclosure of workers' performance. Those problems can be solved by connecting to a managed service provider (MSP) or using a vendor management system (VMS).

Want to learn more about creating an employee referral program, or just inquire about your potential employee management? Contact HCMWorks today, our team of potential workforce management experts will be happy to help.