Dive Brief:

• A new survey reveals that talent acquisition teams that expand their employee referral programs beyond employees and invite referrals from alumni, contractors, customers, vendors and partners get 28% more hires from referrals and 8% higher quality referral candidates.
• Employee referrals account for 32% of new hires on average and produce the highest quality of candidates compared to other sources.
• Among respondents, 77% currently have a formal referral program, but for those that do, 57% limit their program to employees only.

Dive Insight:

The survey results, from SmashFly Technologies, are noteworthy considering organizations are spending more and taking longer to fill key jobs but may get better recruiting results by leveraging an organization's full network.  

The data also illustrates that extending who can refer candidates into the organization can increase the volume of leads without decreasing quality. With referrals bringing the highest volume of quality candidates, it's not surprising that 35% of organizations are actively seeking ways to start a formal program. Yet 44% say lack of budget and resources to offer rewards and manage referrals are holding them back.