8 Facts on Employee Referral Programs

Tiffany Jin
Co-Founder
December 3, 2023
Blog
2 min read
What is an Employee Referral Program?
Employee Referral Program is a "win-win" for employees & company! It encourages employees to refer candidates for job openings, earning bonuses if their referral gets hired. Cost-effective & efficient, it taps into employees' networks while keeping them engaged & motivated.

Around 71% of employers have an employee referral program in the US today. Evidence from collected data has demonstrated that these programs can result in improved recruiting efficiencies when looking at performance, retention, and overall employee satisfaction rates. Here’s some of our favorite stats that we’ve come across: 

1) Employee referrals account for 30-50% of all hires in the U.S.

2) 45% of referral hires stay longer than four years, compared to only 25% of hires from job boards.

3) The average employee referral takes 13+ days less to hire.

4) The cost-per-hire of employee referrals is $1,000 less on average than other hiring sources.

5) 88% of employers rate employee referral programs as the best source of applicants.

6) Referred candidates are 2.6% to 6.6% more likely to accept job offers.

7) Using referrals increases retention by 40%. (On average, referral hires have a retention rate of 46%, compared to only 33% of job board hires.)

8) Hiring referrals reduces company turnover by up to 20%.

Referrals have become one of the most important and successful ways companies hire talent. The fact is, referrals offer their employers many perks and benefits. From saving thousands of dollars in hiring costs to lower turnover rates, employers gravitate toward the benefits of referral hiring. Employee referrals are a powerful and effective recruitment strategy for organizations when successfully implemented.

Citation: "25 Incredible Employee Referral Statistics [2023]: Facts About Employee Referrals In The U.S." Zippia.com. Feb. 27, 2023, https://www.zippia.com/advice/employee-referral-statistics/

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