Sunday, October 01, 2006

Employees Referal Programs

The robust growth trends witnessed over the last few months has seen huge spurt in demand of trained manpower. Since hiring laterals is an increasing challenging task in the war of talent, organizations are increasingly relying upon employee referrals programs to attract talent.

This is working so well in most of the organizations that nearly 70% of all laterals joining the organizations today are from employee referral schemes. Employee’s referral programs in organization are being given various kinds of incentive like monetary rewards, products and even paid holiday trips.

Most of the organizations face an uphill task of sourcing genuine profiles with accurate information. Referral program helps organization on getting appropriate profiles which ensures that the employees have an increased sense of ownership and accountability towards the organization. This also has an positive impact on employee’s motivation and helps the organization in creating better internal partnership with employees in employer branding.

Business Standard has more on trends in employee referral program in India. It also talks abut the flip side of the program.

The big downside is that since employees get a chance to bring in people they know, there is a risk of a negative-minded group getting embedded in a company. In some instances of fraud in BPO firms, made possible by a nexus among criminally-minded employees, the referral system was seen as a root cause.

Although such possibilities can’t be denied altogether but the impact and no would be negligible and most likely to be prevalent in non-specialized functions. I am sure the past performance of an employee can also be looked as one indicator of the likely referral. Generally referrals are from previous organizations, relatives or spouse, or common friends.

No comments: