Employee referral campaign Assignment Help: As per Human Resource Management Assignment Help Employee referral campaign is one of key options that can be used in the recruiting process. It is estimated that around 30% of all recruitment is done through employee referrals. Following are advantages and disadvantages of employee referral campaign programs:

 

Advantages: Quality employees: This program provides an opportunity for employers to get a source of passive candidates who are not actively seeking new jobs. So, employers can get pool of potential candidates and produce higher-quality candidates. Candidates referred by employees tend to be of higher quality, because his or her reputation is closely associated with quality of refer candidate. Additionally, referring an unqualified candidate reflects poorly on the employee’s reputation that may affect his or her own career prospects. Reduced Recruitment Work: It reduces recruitment work due to receiving referrals from current employees. Organizations can fill their huge requirements of positions with the quality and frequency of internal referrals. The employee referral program may also complement for other recruitment efforts including job fairs or posting job openings. Reduced cost: Another benefit to employee referral is the cost reduction. Most referrals have little or no cost as compared to normal hiring costs. Referral programs can reduce advertising costs, employment agencies and Job fair expenses . It is becoming more and more popular in economic downturn and recession period.

 

Disadvantages Lack of diversity: The diversity of the candidate pool is limited when using employee referrals in recruitment. Employees are likely to refer candidates with similar backgrounds. Companies can miss out a diverse candidate pool. So, it is important for organizations to give stick instructions for employees to refer diverse candidates with different qualities to create innovative and creative organization.

 

Bonus: The cost of a referral program is variable due to rewards and bonuses of employees who refer candidates. For an effective program, it is necessary to give attractive rewards for current employees (Mathis & Jackson, 2011). A monetary bonus is a typical reward for a referral employee who is hired and stay with the company for a predetermined amount of time. So, referral bonus can increase the cost of the organization.

 

Biasness: Some managers may have biases against employee-referral programs. They feel that referrals are favors of them, so they refer their followers, friends and other close persons who are not valuable and good for the company.

 

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