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Discover the Best, Hire the Best: The Power of Employee Referrals

Discover how employee referrals can increase hiring success by 40%, with strategies and insights from Gramerci, your recruitment partner.

The Value of Employee Referrals

In the quest to discover and hire the best talent, employee referrals have emerged as a powerful tool. According to Glassdoor, employee referrals increase hiring success by 40%. This blog explores the significance of employee referrals, backed by statistics, and provides strategies for implementing effective referral programs that enhance recruitment outcomes.

The Impact of Employee Referrals

1. Higher Quality Hires:

  • Employee referrals often result in higher quality hires. Referred candidates are more likely to be a good fit for the company culture and have a strong understanding of the job requirements.

  • Glassdoor’s data shows that referred candidates are 40% more likely to be hired than those sourced through other means, indicating the effectiveness of this approach in securing top talent.

2. Faster Hiring Process:

  • The hiring process for referred candidates is typically faster than traditional recruitment methods. Employees can quickly identify and recommend suitable candidates, reducing the time spent on sourcing and screening.

  • A report by Jobvite found that referred candidates are hired in an average of 29 days, compared to 39 days for candidates sourced through job boards.

3. Improved Retention Rates:

  • Employees hired through referrals tend to have higher retention rates. They often feel a stronger connection to the company, having been recommended by someone they know and trust.

  • According to LinkedIn, referred employees have a 45% retention rate after two years, compared to 20% for hires from job boards.

Strategies for Implementing an Effective Employee Referral Program

1. Create a Clear Referral Process:

  • Develop a straightforward referral process that is easy for employees to understand and use. Clearly outline the steps for submitting referrals, the criteria for eligible candidates, and the rewards for successful referrals.

  • Ensure that the referral process is accessible through multiple channels, such as the company intranet, email, and a dedicated referral platform.

2. Offer Attractive Incentives:

  • Provide attractive incentives to motivate employees to participate in the referral program. This can include cash bonuses, gift cards, extra vacation days, or other valuable rewards.

  • Recognise and celebrate successful referrals publicly to encourage more employees to participate and reinforce the value of their contributions.

3. Communicate the Program Effectively:

  • Regularly communicate the details and benefits of the referral program to all employees. Use internal newsletters, team meetings, and company-wide emails to keep the program top of mind.

  • Highlight success stories and the positive impact of referrals on the company to demonstrate the program’s value.

4. Provide Feedback and Transparency:

  • Keep employees informed about the status of their referrals. Provide timely feedback on the progress of referred candidates and communicate the reasons if a referral is not successful.

  • Transparency in the referral process builds trust and encourages continued participation.

5. Encourage Inclusive Referrals:

  • Promote diversity and inclusion by encouraging employees to refer candidates from diverse backgrounds. Emphasise the importance of diverse perspectives and experiences in building a strong and innovative workforce.

  • Monitor the diversity of referred candidates and adjust your strategies as needed to ensure an inclusive referral program.

Case Studies: Successful Employee Referral Programs

1. Atlassian’s Referral Program:

  • Atlassian, a leading Australian software company, has a robust employee referral program that emphasises simplicity and rewards. The company offers attractive incentives for successful referrals and regularly communicates the program’s benefits to employees.

  • Atlassian’s referral program has significantly contributed to the company’s ability to hire top talent quickly and efficiently.

2. REA Group’s Referral Initiatives:

  • REA Group, a digital real estate company, has implemented a comprehensive referral program that includes cash bonuses and recognition for successful referrals. The program is supported by a user-friendly referral platform that streamlines the submission process.

  • The company’s commitment to employee referrals has resulted in higher quality hires and improved retention rates.

3. Canva’s Inclusive Referrals:

  • Canva, a graphic design platform, encourages employees to refer candidates from diverse backgrounds. The company’s referral program includes diversity-focused incentives and regularly highlights the importance of inclusive referrals.

  • Canva’s approach has helped build a diverse and innovative workforce, contributing to the company’s continued success.

Gramerci’s Role in Enhancing Employee Referrals

At Gramerci, we recognise the power of employee referrals in discovering and hiring the best talent. As a leading recruitment company, we are committed to helping businesses develop and implement effective referral programs.

Customised Referral Strategies:

  • We work closely with clients to design tailored referral programs that align with their company culture and business goals. Our approach ensures that referral programs are engaging, inclusive, and effective.

Support and Training:

  • Gramerci provides support and training to help employees understand the referral process and the benefits of participating. We offer resources and guidance to ensure that referral programs are easy to use and successful.

Monitoring and Optimisation:

  • We continuously monitor the performance of referral programs and provide insights and recommendations for improvement. Our goal is to help businesses optimise their referral strategies to achieve the best possible recruitment outcomes.


Employee referrals are a powerful tool for discovering and hiring the best talent. With a 40% increase in hiring success, referred candidates often result in higher quality hires, faster hiring processes, and improved retention rates. By implementing effective referral programs, offering attractive incentives, communicating the program effectively, providing feedback and transparency, and encouraging inclusive referrals, companies can leverage the power of employee referrals to build a strong and successful workforce. At Gramerci, we are dedicated to supporting businesses in developing and optimising their referral programs to achieve their recruitment goals.


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