Refer & Earn
Internal referrals now form over 40% of new hires across companies in various sectors.
By Shreya Biswas, TNN |
NEW DELHI: Internal referrals, once small and confined to the IT industry, has come of age and is gaining popularity among various sectors.
From companies in the IT sector such as Xansa, Sapient, Honeywell Technologies to firms in other sectors like KPMG, Maruti, Motorola, Subhiksha Trading and Haier, all are hiring as high as 40-60% of their new recruits through internal referral programme. Maruti has recruited over 250 people via referrals.
Not only are companies getting their local as well as global workforce to recommend, it has also helped them to spot potential hires.
Understandably, the stakes are being raised. Juniper Networks hands out Rs 1.12 lakh for every individual hired. KPMG pays Rs 20,000-1.25 lakh, Sapient referral programme provides up to Rs 1.5 lakh besides a bonanza prize of Ford Fiesta, depending on the type of positions referred.
Xansa India HR director Shantanu Banerjee says: “Internal referral allows you to tap sources which you would have never known to exist, such as those who would have drifted out of the workforce. Your employees help to identify them and get them back into the productive cycle.
Xansa, for one, has 42% of its fresh hires in IT and 58% in the BPO business through internal referrals. This was around 15% in 2004 when the scheme was launched formally.” Sapient’s 43% new recruits are from internal referrals while the percentage for Honeywell Technology and Adobe is over 40% each.
The reasons behind growing popularity of internal referral are obvious. At a time when companies are reeling under talent crisis, internal referral offers not just cost advantage but also less hiring time, assured quality and better reach as an employer. It also helps companies to spot people with rare skills in the new economy.
KPMG, which has over 50% of its people coming through referrals, has been using its global workforce to get people recommended. However, what has helped to better leverage referrals is getting the process automated.
“The process has got automated, which has made it easier. The referral rate has steadily increased and in 2006 we had around 44% of conversions,” says Honeywell Technology Solutions Lab global director (HR) Shrikant Lonikar.
From companies in the IT sector such as Xansa, Sapient, Honeywell Technologies to firms in other sectors like KPMG, Maruti, Motorola, Subhiksha Trading and Haier, all are hiring as high as 40-60% of their new recruits through internal referral programme. Maruti has recruited over 250 people via referrals.
Not only are companies getting their local as well as global workforce to recommend, it has also helped them to spot potential hires.
Understandably, the stakes are being raised. Juniper Networks hands out Rs 1.12 lakh for every individual hired. KPMG pays Rs 20,000-1.25 lakh, Sapient referral programme provides up to Rs 1.5 lakh besides a bonanza prize of Ford Fiesta, depending on the type of positions referred.
Xansa India HR director Shantanu Banerjee says: “Internal referral allows you to tap sources which you would have never known to exist, such as those who would have drifted out of the workforce. Your employees help to identify them and get them back into the productive cycle.
Xansa, for one, has 42% of its fresh hires in IT and 58% in the BPO business through internal referrals. This was around 15% in 2004 when the scheme was launched formally.” Sapient’s 43% new recruits are from internal referrals while the percentage for Honeywell Technology and Adobe is over 40% each.
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The reasons behind growing popularity of internal referral are obvious. At a time when companies are reeling under talent crisis, internal referral offers not just cost advantage but also less hiring time, assured quality and better reach as an employer. It also helps companies to spot people with rare skills in the new economy.
KPMG, which has over 50% of its people coming through referrals, has been using its global workforce to get people recommended. However, what has helped to better leverage referrals is getting the process automated.
“The process has got automated, which has made it easier. The referral rate has steadily increased and in 2006 we had around 44% of conversions,” says Honeywell Technology Solutions Lab global director (HR) Shrikant Lonikar.
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