Finding quality candidates is tough, and the consequence for finding bad candidates is even steeper. A bad hire can lower productivity, reduce performance, and weaken team morale. Overall it adds up to a very costly mistake from more than just a monetary standpoint.

As one of the only business segments not directly contributing to the profitability of a company, HR has a large need to save money wherever they can. The average cost of a new employee in 2016 was roughly $58,000. To put that in perspective, for small business owners, the average cost of a bad employee was $8,000.

One of the best ways to avoid high turnover rates is to use employee referrals. Factually, 40% of all hires across all industries are referrals, despite them making up a small percentage of the total application pool. Having an employee referral program is critical in today’s talent climate and understanding how to get started is only the first step.

This week, #WorkTrends host Meghan M. Biro welcomed Mike Bachman, CEO, Preferhired to discuss the value of employee referral programs.

Here are a few key points Mike shared:

  • Employee engagement, tracking, and communication are the big issues for referral programs
  • Good referral programs need the involvement every department of organization
  • Large incentives for referrals aren’t needed. Sometimes, it’s more the recognition attached
  • Engage employees to find the best talent

Did you miss the show? You can listen to the #WorkTrends podcast on our BlogTalk Radio channel here: http://bit.ly/2vO0TDq.

You can also check out the highlights of the conversation from our Storify here:

Didn’t make it to this week’s #WorkTrends show? Don’t worry, you can tune in and participate in the podcast and chat with us every Wednesday from 1-2pm ET (10-11am PT).

Remember, the TalentCulture #WorkTrends conversation continues every day across several social media channels. Stay up-to-date by following our #WorkTrends Twitter stream; pop into our LinkedIn group to interact with other members. Engage with us any time on our social networks, or stay current with trending World of Work topics on our website or through our weekly email newsletter.

Photo Credit: perzonseo Flickr via Compfight cc

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