Want to find that next sales superstar? One out of every three new hires is the result of an employee referral.

John Sullivan, also known as “The Michael Jordan of Hiring”, has years of experience helping top companies develop their own employee referral programs (ERPs). According to Sullivan, successful ERPs are often the result of taking these 10 steps:

1. Avoiding cash bonuses as incentives. Cash bonuses often result in employees recommending anyone just to earn more money.
2. Offering public recognition. When a successful new hire is the result of a referral, be sure to recognize that fact publicly, as often as possible. It energizes the employee who made the recommendation and encourages other employees to refer candidates as well.
3. Expanding the ERP to include those close to your organization. Peers, consultants and customers are all great sources of employee referrals. Create an incentive that motivates them to refer top candidates.
4. Responding ASAP. When an employee recommends a job candidate, respond to both the referrer and the candidate within 24-72 hours, so employees don’t feel like their suggestions are ignored.
5. Giving referrals priority. This makes employees feel respected, and it also increases the chance the referral won’t be swept up by another organization.
6. Publicizing new job openings. Send an e-mail giving employees the first chance to refer job candidates before posting the job publicly.
7. Creating referral forms. Post them online and around the office so employees are reminded to follow a specific process.
8. Providing feedback on referrals. Let reps know which type of skills and experience make for good referrals.
9. Encouraging reps to use social networking: It’s a great way to let candidates know about job openings.
10. Requiring a pre-assessment: Have reps provide an assessment of the candidate so you know you’re not wasting your time with recruits who don’t have the experience or skill set to do the job.

Source: “Advanced Employee Referral Programs — Best Practices You Need to Copy,” by John Sullivan, ere.net, 6/14/10.

What’s worked to get employees to refer top candidates at your organization? Share your success stories in the Comments Box below.

Tags: candidates, hiring, Human Resources, jobs, motivation, performances, recruiting