There have been revolutionary changes brought about in the field of Human Resource Management in the last decade. One of the most important functions of Human Resource Management is Talent Sourcing. There are many ways of talent sourcing and each one of them has its own advantages and disadvantages. This project deals with the review of “Effectiveness and Scope of Employee Referrals in the Talent Sourcing” process at Edlogix Software Solutions Pvt Ltd.
An employee referral program is an internal recruitment method that organizations use to identify potential candidates from their existing employees’ social networks. Employee referral programs are designed to encourage employees to source potential candidates for open positions from their existing social and professional networks. Oftentimes, employees receive an incentive – in the form of a monetary bonus or other reward – for referring candidates who turn into new hires. Recruiting candidates using employee referrals is widely acknowledged as the most cost-effective and efficient method to recruit candidates through trusted contacts and make quality hires.
Employee referrals have been found to be effective and many organizations use this method in some formal or informal way. Some of the benefits of referrals include:
(1) Lower your cost per hire, especially versus contingency and executive search agencies,
(2) provide a steady stream of high caliber candidates who are often those hard to find, “passive” job seekers,
(3) increase employee retention by twenty five percent,
(4) boost overall employee morale, and
(5) foster positive communication amongst employees as well as to the outside world.