Staff referrals are better for budget than recruiting

Employee referral programmes are more cost-effective than recruitment
agencies, according to 80 per cent of respondents to a US survey.

Almost 70 per cent of those who took part in the 2001 Employee Referral
Program Survey said ERPs are more cost-effective than other recruiting methods.

Thirty-seven per cent said ERPs are effective compared with other recruiting
methods, while 36 per cent said they are effective in improving the retention
of current employees.

More than 65 per cent said their organisations have a formal or informal ERP
with financial rewards, cars and gift certificates offered as incentives.

SHRM president Helen Drinan said, "Employee referral programmes are one
of the most effective recruitment tools employers have.

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"In today’s tight labour market, organisations need workers fast. And
what better way to tap into talent than to encourage current employees to
identify and refer potential recruits to your organisation?" Drinan said.

The joint research by SHRM and online company Referral Networks surveyed 586
HR professionals in the US regarding the structure and effectiveness of
employee referral practices.