Hi fellow professionals, 

Employee referral plays a very important role in recruitment in some companies. In TVS Group the new employees are recruited by the employee referral. The advantage of thie employee referral are motivation to employees and getting right candidates. This practise is also followed in IT Software companies also. In Tavantra and emoksha 75% of their employees are recruites through this referral scheme.

They also have incentive scheme, like if any candidates selected throught the referral, the referred candidate will get incentive ranging from 10,000 to 20,000. Apart from this the best employees are selected and honoured by the CEO.

The Present Challenge for today's HR in IT companies is Attrition. I feel this scheme will help the HR's to reduce the attrition rate.

Expecting some comments.

Thanks

Ankur

Yes, you are really true.

If you can track the Referrals its best, otherwise there is confusion in the employees. Also if you have already rejected some candidates and they will be referred through this program will have to track efficiently with some system in place.

TVS Motors as you told in your discussion is using Jobstreet.com's software solutions to track this efficiently and make the duplication checks for resumes. This procedure of duplication check is not only for referrals but for the resumes submitted by consultants as well, thus saving considerable cost. The system is efficient and used by corporates like Colgate, HLL etc other than IT companies.

Of course this will reduce the attrition rate. But there is always possibility of like-minded peoples increase in the company. this is now surely helping BPO's.

Want to hear more on referral from you guys.

Regards

hema

There are few points to be kept in mind.

1. Though the scheme may get you a better talent, you have to see that this is more cost effective i.e.costing less than the other sourcing methods.So, you can award around 3-4% of CTC of the recruitee as reward amount for employee [ who refers] ,as the market rate is around 8.33% of the annual CTC.

2. The reward can be paid on 3rd month after seeing that the new joinee works atleast for 3 months.You can also make the refering staff as guarantor for the new employee.

3. HR cannot enjoy this scheme. [ as it is part of their job]

4. Reporting manager is also exempted. i.e. no reward for referring this staff.

5. If someone refers 4-5 staff, he can be given special rewards.

However, in all the above cases, we have to ensure no unethical means have been followed for recruitment.

david

I would like to know if any one can share a templet for the Employee Referral Scheme Invitation.

We have an Unique form for the referral scheme, but I need an invitation. Can anyone help