Employee Referral Programs

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Got Friends?

By Kim Silvers

As the employment market tightens, outsourcing employee recruitment is becoming a frequent occurrence for hard-to-fill positions. The unemployment rate in California is now less than 5 percent, and the volume and caliber of candidates coming from onsite human resources staff and professional recruiters can be disappointing.
     However, employers are finding that “insourcing” their recruitment efforts via employee referral programs (also known as “bounty” programs) can increase the caliber of key hires and have a positive impact on their bottom lines.
     Typically, an ERP is structured to encourage current employees to assist in recruiting efforts by looking for friends and family who may have the needed skills but are unaware of job openings or aren’t looking to leave their current employer. Cash and gift rewards are offered to employees when their referrals are hired — although sometimes the reward isn’t made until three to six months after the referred employee has been on board.
     DST Output in El Dorado Hills has offered an ERP since the mid-’90s, when high-tech recruiting was ablaze and competition for key skills was fierce. Kimberly Bright, the firm’s former human resource manager, explains “the program is very scalable” and varies each year based on the employment market and company needs. DST’s current “Got Friends?” program offers cash rewards: up to $1,000 for some engineers and exempt positions, up to $500 for some nonexempt positions.

Cash Prizes … and More
Continued...

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