Beware of Recruitment Fraud - We have become aware some people have received false employment offers from individuals or organizations posing as Nexus Staffing. Please be aware that Nexus does not send job offers via text, WhatsApp or any social media, and that we will never request money from job seekers, nor request personal information beyond what is required for payroll purposes after hire. All individuals who are successful in gaining an offer of employment from Nexus Staffing are required to go through a formal recruitment process including an interview with a member of our recruitment team. If you have received an employment offer via text, WhatsApp or on Social Media please delete it. We have reported this situation to the Canadian Anti-Fraud Centre.
Having a strong economy means that there are fewer individuals looking for jobs in the labour market, yet we are also seeing increasing turnover rates at the same time. What does this mean for employers? We currently have a tight labour market and fierce competition, which means that it’s a job candidate’s market. Employers and hiring managers should take note that candidates have increased choice and decision-making power in the job market. As a recruiter, you must place your focus on getting the most return. You can do this by using employee referrals.
Recruiting Passive Talent Can Be Difficult
When we think of recruiting, we usually want to attract those looking for a job to us. By recruiting only those active job seekers, we limit ourselves to only a small talent pool. But, you can expand your business’ talent pool by ten times by using employee referrals.
Employees will encourage their close friends and family members, or acquaintances they know, to apply for a job opening at their company. This can attract new potential employees who might not have been looking for a job actively. Around 70% of the world’s workforce is made up of passive talent. These are individuals not looking for new positions, but 87% of active and passive candidates would consider the option of a new opportunity. Referrals are one of the top ways that people discover a new job.
Strong Economies Boost the Quality of Referrals
Tight labour markets with low unemployment rates result in higher quality candidates. Considering the fact that employee referrals generally always result in above-average candidates, employers will be able to pick from the cream of the crop. Since unemployment is low, the job market is not flooded with job seekers. And, employees are willing to quit for better opportunities.
Employee Referrals Convert Much Faster
Strong economies mean businesses are working overtime to take advantage of spending patterns and investments towards growth. When recruiting, employers want access to the top candidates so they can hit the ground running.
Referred candidates are hired faster than non-referred candidates, and they come at a 75% reduction in cost per hire. Thus, you not only will get a higher quality employee, but this will also help your bottom line.
Employee Referrals Have Longer Retention Rate and Higher Profitability
In addition to the benefits above, referred employees have longer retention rates, which means less turnover for your company. Referred employees can do more for you than just lower your hiring expenses. A recent survey showed that 82% of employers stated referred employees contributed more ROI than employees from other origins.
Improve Employee Engagement
Letting your employees refer people they know can help boost morale in the workplace. If referred candidates are hired, the employee will feel like they have a voice and that they contributed to your company’s growth. This results in feeling part of a team, which is a critical part of making your business a success.
