How effective is an employee referral program?

Employee referral programs are very effective for finding quality employees and saving money. When programs successfully gain referrals, these referrals can save 13+ days of hiring time and over $1,000 in hiring costs.

Of course, the biggest hurdle is incentivizing employees. Only 6% of employees participate in referral programs for financial incentives, so offering large cash rewards isn't the key to a successful program. Instead, creating a positive company culture that encourages employees to reach out to their friends may be more beneficial.