New research from Madeline Laurano and Aptitude Research confirms that 84% of talent acquisition leaders know employee referrals are the workhorse of sourcing – but then why are so many programs failing to deliver improved hiring outcomes?

In this new report, Solving the Sourcing Challenge, Madeline explores how 300+ talent acquisition leaders are navigating the ongoing tight labor market and the challenge to find enough people to hire and fill jobs. Sourcing talent remains one of the most challenging areas of HR, and this year 72% of leaders are rethinking their sourcing strategy entirely. The top challenges companies face, include:

• Finding diverse candidates (cited in the research as the biggest sourcing challenge)
• Lack of good technology
• Difficulty searching for candidates in the ATS
• Limited in-house expertise

The research revealed that when TA leaders examine different sourcing channels, they believe employee referrals are the most effective source of hire. However, while 82% have some employee referral program in place today, many are failing to reach their full potential.

In addition to saving costs, employee referrals bridge the gap between recruitment and retention by engaging both new hires and existing employees in the hiring process.

How can hiring teams lean into, and optimize, referrals?

While the report outlines the challenges teams are facing with sourcing, and employee referrals as a sourcing channel, Madeline also recommends strategies leaders can consider to help boost effectiveness. When done right, referrals are the only sourcing channel that measurably improves every critical core recruiting metric – from 62% reduction in time-to-fill to a 2x improvement in first-year retention.

So, you have (or, want) to make employee referrals a critical part of your sourcing strategy, here are some resources for getting started:

• Read the Aptitude Report, including strategies for leaning into referrals to drive improved hiring outcomes.
• Madeline Laurano for ERE, New Research on Employee Referrals Reveals High Potential but Failure to Deliver
• Learn more about Aliro’s Referral Solution