Referral Employees are more profitable for their employers by 25%. 
In 2020, the average referral bonus was $1500. 
45% of employees sourced from referrals stay for 4+ years. 
Only 25% of Employees sourced from job boards stay for 2+ years. 
Overall, referral employees had a 28.5% chance of being hired, while non-referral employees only had a 2.7% chance. 
What are Employee Referral Programs?
Let’s get down to the basics and understand what the hype is all about.
Employee Referral Programs are offered to hire quality candidates and reward the employees who refer them.
32% of employees recommend suitably skilled candidates for their organization’s growth. 
Incentives act as good motivators to refer to quality personnel.
70% of companies offer between $1,000 and $5,000 as cash incentives for referring employers. 
Referral statistics suggest that job seekers are 46% more likely to be hired and interviewed on the basis of personal relationships with the company’s staff. 
Only 4% of company referral programs hire 30% of employees via referrals. 
Average employee referral programs take 15 to 25 days to hire, which is much less compared to other recruitment processes.
Around 33% of companies use third-party software to manage their employee referral programs. 
According to referral data, around 41% of referrals in companies come from external networks and contacts. 
Employees usually refer suitable candidates to their social or professional networks.
Here arises the question,
Why would employees participate in Employee Referral Programs?
Out of friendship and relationship with the person they refer.
To be recognized and considered a valuable asset to the company.
Help the company’s growth.
Money and incentives.
Why Choose Employee Referrals?
Want to get placed at a better company?
Want to hire high-value employees?
With 82% of employers favoring referrals for yielding the best investment returns. 
Whether you are seeking or providing employment, there are numerous benefits of Employee Referrals.
Let’s understand the reasons for choosing Employee Referral from the employee’s POV.
Look out for the following Employee Referral Statistics to get a dream job:
Based on performance
Employee Referrals are more likely to perform better as there is a 2.6-6.6% increase in the likelihood of a job match. 
New hires sourced via referral programs produce 25%more profit for their companies than new hires sourced via other means. 
So, from employer data, we conclude that Referred Employees are more likely to match employer requirements than others.
The referrers have already done screening about the candidate’s ability to work and fit in the job culture.
70% of employers state that referred employees fit the company culture and environment better than hires from other sources. 
Based on frequency
Year after year employers are seen to be more inclined towards the Employee Referral Program, than other sites and sources.
Employers confirmed referrals as the most reliable source for generating hiring high-value candidates with 88%. 
About 71% of employers have a referral program in the US. 
Employers offer bonuses and incentives to participating employees. The Dell company, for instance, uses its referral program to gather 40k-50k referrals each year.
In the US, given that 30-40% of hires were referrals, only 7% of total applicants were referrals, in 2022. So, less competition and more chances of getting the job. It means if 100 people apply for a job with 10 openings. 7 candidates among these hundreds would be referrals with 2 having surety of being hired. Only 7 among the rest 93 would be hired. 
The Booz Allen Hamilton consulting firm has one of the best referral programs, with 55% of hires each year.
Manisha is a digital writer providing guidance in career development and growth. She facilitates skill development and implementation of the right strategies for advancement. At Jobera, She documents content around the latest market trend analysis, insights, and career planning.