The Booby-Traps that Employers Should Watch Out For while ERP-ing (Part 2)

In previous post, we discussed a few mistakes that organizations tend to make while executing their employee referral programs: Excluding HR and executives from the program, Lack of strategy, Centralized approach to an Employee Referral Program, and Equal rewards. So what are some other traps that we, as HR staff, should watch out for? Read on!

Inability to Track
Most organizations are consistently utilizing excel spreadsheets to track employee referral programs. This creates an administrative nightmare once the referral counts grow, essentially creating inefficiencies for both employees and management.

Just as vital, HR departments lack metrics on referrals, and source of hires. Metrics and key indicators such as the timeline between the source and the employee referral program, or the timeline of the overall employee engagement can be analyzed to refine talent acquisition strategies.

Poor Employee Engagement
The lifeline of an employee referral program is based on active employee engagement. Referrals may come organically; however, employers do have to implement a strategy to engage employees effectively. Continual updates and refresh of an employee referral program are essential for maintaining employee interest. Most organizations tend to have stagnant programs with limited marketing techniques which disengage their employees.

Lack of Technology Infrastructure
With the benefits of social media, organizations are now realizing the vast potential of how effective it is to connect to the world of social media. Organizations that have an automated employee referral program will be able to seamlessly connect social media platforms. Conversely, by only having a manual process the employee usage will be limited.

An applicant tracking system is considered to be a minimum tool used to remove some of the administrative tasks associated with a manual referral program. However, additional technologies can further automate the process, and tap into your employee’s social networks.

Reactive Response
HR and recruiters need to respond to employee referrals in a timely manner. If it takes organizations over a week to respond to employee referrals, employees may become disengaged with both the program and the process. In addition, many employers overlook responding to the employees as it creates another task for them in the already administrative burdened employee referral program. This can stifle the growth and effectiveness of the ERP within the organization. It is critical for the employees to receive acknowledgment and a quick response in order to encourage interest.

Probation periods:
Most organizations require the referred employee to work for the organization for at least three months before rewarding the referring employee. Long probation periods may deter employees as they have to wait a long time to receive their reward.

A Probation period safeguards the organization from providing rewards at will.   However, the employer has the accountability of properly screening the referred employee for cultural fit and potential performance issues. While the employee is recommending the candidate, the onus should be on the organization for taking the risk and rewarding the employee appropriately.

Now you know all the possible traps that your ERP may have; the next smart thing to do is avoid them. For more information on how to deploy your ERP properly, please refer to our previous blog post, “The Booby-Traps that Employers Should Watch Out For while ERP-ing (Part 1)“.

15 Must Haves

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