RECRUITING & RETENTION

10/09/07

Tips for successful employee referral programs

Do you have any information about increasing referral bonuses? We are looking at doubling our existing plan amount and are looking for data that would tell us how much of a hiring increase we could expect. Do you also have any data that indicates what percent of new hires are employee referrals?

There is no data in place that will tell you that if you double your referral bonus then you will get X yield. There is, however, evidence that if you increase your referral bonus you will see an increase in referral hires. But there are really two critical items that drive employee referral program (aka, ERP) hires. The first is how much you pay. The second and more important is your communications plan for the program. This is what will drive referral success (given you are paying a reasonable bonus).

Companies that have a strong ERP communications plan and have generous referral bonuses see as many as 40% of their hires coming from referrals. I would recommend that you double your bonus but that you also put a comprehensive communications strategy in place. The communications strategy needs to be well thought out to include naming the program, a kick-off campaign, major involvement of line managers, posters, ongoing communications updating employees on the status on their referrals, and employee referral success stories. Anything you can do online versus on paper is a plus and will add to the effectiveness of the program.

Remember, too, that referral programs should be fun and slightly irreverent so that employees will enjoy participating. Also, I would strongly recommend that you have a "pot of gold" as part of the program. Let me share with you an example.

Let's say that you offer $2000 as a referral bonus. Why not add a grand prize for all those who have successful referrals? So every time an employee refers someone who is then hired, their name goes into a hat for a grand prize drawing at the end of the program. I am familiar with one program where the grand prize was a trip for two to an exotic vacation destination for 5 days. The cost to the company was $5000, but it was built into the program budget. This type of incentive really drives employee involvement which in turn drives a high number of referral hires.

Employment advertisement firms have excellent expertise in this area and they can share with you many different programs and communications strategies. I would urge you to engage one of these firms for help in maximizing the effectiveness of your employee referral program.

-- LOU RUBINO

Checking a candidate's previous employment record

We are interviewing for an opening and were wondering what we can ask a former employer about a candidate. Can we ask if they were terminated, and if so, why? Can a former employer help protect a new employer from a poorly performing candidate?

You can ask a candidate's former employer any job-related question. You can and should ask how someone performed at their last position. You can and should ask if a candidate was terminated and if so, why they were terminated. There is negligent hiring case law, and if you hire someone and failed to attempt to find out why they left their former employer then you can put yourself at legal risk.

Let me give you an example. Employee X applies for a job and puts down on their application or resume that they worked at Company Y. They were terminated from Company Y for physically confronting another employee. Let's assume first that you hire employee X and don't check a reference. Employee X reports to work and during the first week physically confronts one of your employees. You would be liable because you were negligent in not doing your due diligence because you failed to check the person's references. Let's assume secondly that you did check a reference but didn't ask about their on-the-job performance or why they left the position. Again, you would be liable for negligent hiring. Finally, let's assume you asked all the appropriate questions and the former employer knows that Employee X was fired for wrongdoing and did not share that information, claiming they would only confirm dates of hire. Then, if Employee X committed a wrongdoing at your workplace, you would not be liable under negligent hiring laws but the candidate's former employer would be.

The rule of thumb and what most courts have upheld is that truth is the ultimate defense. Employers have a responsibility to tell the truth in situations where employees have been fired for committing serious on-the-job offenses which could put the potential new employer at harm either physically or economically.

-- LOU RUBINO

When candidates apply for multiple openings

What are your thoughts on receiving multiple resumes from the same person for different roles within a company? Should the candidate be judged poorly for responding to several different positions? Should the candidate assume the resumes are shared by us? Does this demonstrate desperation or lack of focus?

I don't think anyone should be judged poorly because they responded to several different positions at a company. Our role as recruitment professionals is to hire high-quality applicants. I wouldn't reject out of hand a candidate because they sent in multiple resumes. If they are qualified for the positions for which they applied, then more power to them for taking the initiative to submit more than one resume. To me that shows focus, not lack of focus, and tenacity, not desperation.

In recruitment, we have to be inclusive, not exclusive. We need to evaluate candidates on the basis of their qualifications and not be judgmental or try to delve too deeply into someone's motivations during the job search process. It's important not to put artificial barriers in place. There are actually outplacement firms that recommend sending in multiple resumes, primarily because there is some concern in the workplace that recruiters, in fact, don't do a good job of sharing resumes, even when there are sophisticated employment systems in place. Some people are just following a course of action that has been prescribed for them. But, what is most important is this: What if the person who sends in multiple resumes is the best candidate for one of your jobs? Would you not hire him?

-- LOU RUBINO

Leveraging employee contacts to meet difficult hires

I have many openings in several locations that do not pay very well. Do you have any fresh ideas about how to attract candidates?

Without knowing what you have done to date it is difficult to provide you with a concrete solution, but here is what I would recommend. You have heard of the television program The Power of Ten. I suggest you try The Power of One. By The Power of One, I mean using the power of each individual in each of the locations where you have openings. I would suggest you adopt an employee referral program and ask each person to refer just one qualified person, i.e., The Power of One.

The math for a program of this magnitude is amazing. If each person refers one person who is hired, you would actually double your workforce! I would focus on this approach. Leverage your employees through an employee referral program to help you meet your hiring needs. This will only work if you reward them for their efforts and if their direct supervisors get involved. Each supervisor should hold a meeting with their employees and ask them for their help. Everyone knows one person they could recommend. Leverage their contacts to meet your hiring needs.

-- LOU RUBINO

Posting the same job at different levels

Are there any legal reasons prohibiting the posting of a job at more than one level, e.g., Financial Analyst and Senior Financial Analyst?

Generally speaking, parameters around posting jobs are set by the organization. There may be restrictions based upon the union status of a particular job. Therefore, the "legalities" of posting at more than one level would be dictated by organizational policy, past practice, or a collective bargaining agreement.

The more practical issues I foresee with posting a job at more than one level are as follows:

• The potential for unintentional discrimination - if the job has a requisition number, how will you delineate between candidates who are qualified for one level but not the other?
• Confusion for candidates due to mixed qualifications - candidates may say they are qualified for a senior position, but HR and/or the hiring manager may believe they are better suited for the lower position.
• Potential for not hiring to the true business need - if the job is open at both levels, has a true assessment of the business need for the job really been accomplished? Do you need a Financial Analyst or a Senior Financial Analyst, and why?

-- TRACY BURNS-MARTIN

Effective new hire orientations

I am looking for suggestions on how to make new hire orientations informative and interactive without taking up too much of everyone's time.

We all innately know that the orientation or as it is currently known "on-boarding" of employees plays a critical role in their short- and long-term success in the organization. The thing we stumble over is a way in which to do it that is engaging, informative and at the same time not completely overwhelming. There are some good books on this topic on the market, including Creative New Employee Orientation by Doris M. Sims and The First 90 Days by Michael Watkins.

I've run orientation programs off and on for 15 years. Here are some things I've learned:

• Do a culture assessment first - Make sure you're telling new hires the same thing they will hear once they enter the work environment.
• Spread out the orientation over time - i.e., 90 days or more. This is so you can avoid information overload. At my current organization, we do a brief overview the first day, have them complete paperwork, and give them the essential information. They have a department orientation within a week of being hired and then we hold a quarterly lunch with a 2 hour overview of the organization's mission, vision, values, organizational structure, business lines and strategic direction. Most employees say they appreciate the fact that they were able to get their feet wet before being inundated with information they could not readily use.
• Customize the orientation to fit the audience - Managers and staff need some of the same basic information, but to be effective, managers will need a different acclimation process in order to help them build critical social networks, learn the ropes in a safe environment, and help them avoid unrecoverable pitfalls as visible leaders.
• Involve senior management - Get the CEO and other executives involved in the process. Ask them to play a role in explaining the mission, vision, and values of the organization. Have them share stories about how they got to be where they are and what will make new employees successful.
• Provide new hires with an operating manual - the manual can include key information, policies, and other reference material they will need once they return to their desks.
• Make it fun! - At one company I worked for, we had a week-long orientation. We planned evening social events that were educational yet allowed employees to socialize and get to know one another better.

-- TRACY BURNS-MARTIN

Writing employment requisitions

Do you have a handy presentation or helpful hints on how to write an employment requisition?

One of the best resources on the market for writing everything from interview questions to job descriptions is The Complete Human Resources Writing Guide by Diane Arthur. Chapter 6 includes multiple examples of job descriptions, job requisitions and posting notices. Additionally, there are a lot of great tips on tailoring your writing to the audience (something we often forget), setting objectives, and overall tone.

A few tips based upon my own personal experience:

• Know your audience
• Keep it simple
• Avoid HR jargon.

-- TRACY BURNS-MARTIN

Reducing personal bias in hiring decisions

How do I help hiring managers look past their own personal filters in making hiring decisions? Do you know of a toolkit or have any specific suggestions?

I have three main suggestions:

• Get specific - The best way to avoid personal filters tainting your hiring process is to have very specific and measurable expectations. Start with a thorough assessment of the business needs. Involve managers in writing the job description and do a reality check with them (the must-haves vs. the nice-to-haves) before you start sourcing.
• Be candid - After the tangible items are documents, discuss the intangibles. Try to gauge where their biases may be. Discuss them openly and honestly. A candid conversation up front about the concept of "likes hire likes" can be helpful. Explain the benefits of complementary skills and the impact of a diverse workforce on creativity and innovation.
• Use objective tools - Create an interview rating sheet specific to the job description. Agree ahead of time on the ratings (clarify what "Good" means) and train managers to qualify their answers. Additionally, provide a predetermined set of behaviorally-based interviewing questions, preferably competency-based.

The reality is that we are all human and our "filters" will exist regardless of how hard we try to ignore them. The more specific you are about the real expectations of the job, including education, experience and training, as well as culture fit, the better off you'll be as an HR professional in setting your hiring managers up for success.

-- TRACY BURNS-MARTIN

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