City missing out on staff referral savings

City
employers are failing to make the most of employee referral schemes and as a
result are missing out on one of the most valuable recruitment tools, according
new research.

A
poll of investment banks by consultants Penna shows that although 80 per cent have
a scheme in place, only 12 per cent make hires through them.

The
research estimates that hiring directly from a referral can save between £5,000
and £6,000 per hire.

Investment
banks in the city are currently operating schemes that offer bounties of between
£5,000 and £15,000, but are reluctant to publicise them because of the current
spate of job cuts.

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Michael
Moran a director at Penna argues that talent attracts talent and the most
effective resourcing strategies are built on referral and mobility programmes.

By Ross Wigham