How to Create a Successful Employee Referral Program

Finding, hiring and retaining high-quality caregivers can be your biggest challenge as a home care business owner. According to the “2014 Private Duty Benchmarking Study,” more and more home care businesses are utilizing an employee referral program to find new caregivers. In 2012, only 9.2% noted that employee referrals were their top recruitment source, but in 2013, that number rose to 17.9%. Referrals from your current experienced caregivers can be your greatest resource for finding new, qualified employees. If caregivers are satisfied with their jobs, they are more likely to recommend employment to their family and friends. And, in the long run, caregivers are even happier when they have good relationships with their co-workers. It’s a win-win situation for your business.

Benefit From Your Caregivers’ Large Network of Friends and Family

Think of the number of employee referrals you could get from your current caregivers. How many friends and family members could they recommend for employment? “A conservative estimate among social scientists is that most people have about 300 friends and acquaintances. Those three hundred people each know three hundred people for a total of 90,000 people who are friends of friends of employees,” says the Society for Human Resource Management (SHRM). You only have to look at Facebook, and how many friends of friends everyone has, to see that one message to those friends will spread the word quickly about a job opening within your company. Your caregivers may be able to reach even more people than some human resource services can (and at a much lower cost).

As a fringe benefit, when your caregivers spread the word about job openings, they’re also spreading the word about your company in general. And their network of friends and family becomes familiar with your services and good reputation!

Receive Qualified Candidates

With an employee referral program that offers incentives, your caregivers won’t just spread the word about a job opening, they will also work hard to refer only the best future employees to your company. “Candidates recommended by employees tend to be better qualified than others,” explains Anrea Poe for SHRM. “That’s because employees pre-screen candidates, saving HR professionals time and money. Plus, employees bring an extra level of expertise to the recruitment process that recruiting firms cannot. They give candidates the low-down on the company culture — both the good and the bad — so new recruits come in with eyes wide open.”

When employees refer their friends and family for employment, they make things easier for you, the home care business owner. They simplify your hiring process by doing a lot of the pre-screening for you.

Reduce Caregiver Turnover