Quality, retention and cost effective – what more could you ask for when it comes to recruiting the perfect candidate? For most people in the industry, an employee referral program (ERP) is one of the most effective hiring tools you can have in your recruitment tool kit, not to mention the best kept secret in recruitment marketing.

Let’s start at the beginning. An ERP is a recruitment method which draws on existing employees' social networks. The scheme encourages employees to select potential candidates from their social networks, and as a reward the employer typically pays the referring employee a bonus.

For any company who already uses an ERP, it’s no secret the highest quality candidates come from those who are poached by existing staff – after all, who better to recommend people to work with than those who already understand the company and know what it takes to succeed. Best of all, ERPs will make a difference to the all important ‘bottom line.’ Aside from the bounty paid for a successful hire, the costs associated are minimal.

This month, Flight Centre Limited has given its employee referral program a revitalised spring clean to boost the effectiveness of its already popular program. Flight Centre has found using a theme for the program creates a strong buzz and goes a long way to help with consistency of marketing. The new theme is centred on ‘The Apprentice’ and the tag line ‘We think you’re perfect!’ Supporting promotional material has included poaching cards, a specialised online application form, banners around the office and promotion at staff social events. What may seem time consuming now, will pay off down the track.

While there are clear positives surrounding an ERP, done poorly and your recruitment brand will suffer. Here are a few tips to make sure your program is a success:

1. Quick turnaround – once you’ve received an employee referral make sure you contact the candidate within 24 hours. Poor contact and lengthy delays will give your program a bad name and will discourage future referrals

2. Stale promotion – Ideally, your referral program should be refreshed every 6 months to keep it current and engaging. Consider changing the reward (e.g boost the amount for one month), or offering an additional prize.

3. Promote, promote, promote! – make sure the program is communicated to employees at every opportunity. Include a story about a successful referral in your monthly staff newsletter, sponsor Friday drinks and put up posters in the common areas of the office.

4. K.I.S.S – Keep it simple, stupid! Make sure the application process for referrals is clear, straightforward and concise. If it’s too complicated the program will quickly lose popularity.

5. Make it worthwhile – There’s no point in offering $50 as a reward, the bounty needs to entice employees to take the time to partake in the program. Consider how much you’re saving when assessing how much to award for a successful hire. If your budget doesn’t allow for a worthwhile reward, perhaps pool together any eligible employees and at the end of each month draw out a winner to receive a central prize (e.g. a weekend away, a department store gift voucher, or cash prize).