The virtues of ‘Refer a Friend’ are extolled throughout the Care industry as an absolute best practice for your Recruitment team. But do the costs outweigh the benefits?
So what are the benefits of ‘Refer a Friend?’
Direct referrals from existing employees are always seen as gold dust in most industries as it tends to mean you have paid a lower fee on Recruitment costs for a new member of staff.
People who refer someone to work with them always feel an inherent sense of responsibility for that person which is why the quality tends to be higher.
Most referral fees are staggered payments to the referrer which means you limit risk on the cost of the referral with most payments being completed once a carer has completed 3 months of probation.
What are some of the drawbacks?
Referrals tend not be a particularly frequent occurrence for many care providers which means they are not often able to keep up with the recruitment needs of the business.
Depending on what you pay for a referral they can be cost ineffective. We see that most businesses average around £200 per referral. The question you have to ask yourself is how many people are you willing to hire at that cost when perhaps there are other avenues that would enable you to hire three, four even five times the amount for the same price.
Firstly – only take referrals from Carers you trust! People tend to form friendship groups with people who have similar attributes and values, so your best bet is to target the Carers who already tick the box for what you are looking for.
Secondly – most ‘Refer a Friend’ schemes never take off because the scheme is not promoted enough. Discuss it in your advert, in training, in weekly updates – celebrate and make known to your staff the carers who have received the full payment for the ‘Refer a Friend’ scheme.