Employee referral programs are used by a lot of businesses today. They work well because employees have many professional and business contacts to draw upon.

Because these programs have worked so well, some businesses are expanding them. They are not only encouraging employees to refer potential employees, but are also reaching out to former employees, people who have retired from the company, customers, vendors, and clients – indeed, anyone who can provide the names of people who have the potential to help the company.

Expanding the program like this has produced even better results for companies – an increase by one-third over the number of referrals from employee only programs.

But some human resource authorities say even these changes do not go far enough. There are other requirements to these programs that need to be changed as well, they argue. For example, companies will not accept referrals until the company advertises for a job opening. Also, if the employee is to receive any recognition or reward for a referral, the person referred must be hired by the company within a certain time period, within six months of the referral, for example.

Management experts say these requirements are outdated as well and should be done away with. They put needless restrictions on the program and probably prevent good people from being referred.

There are other administrative tasks that hamper these programs, management experts say. There is too much paperwork involved for the person making the referral. The process needs to be simplified – a name and a short recommendation should be all that is needed.

Another problem with the way the program currently works is that only the first person to refer a particular individual receives a reward. Others who may have referred the same person are not given credit. But crediting everyone who referred the individual would actually benefit the company more because more referrals make it easier for the hiring manager to determine the candidate’s skills and abilities.

That is why the company should offer incentives for everyone who makes a referral, even if more than one employee refers the same person.

Winston Resources is the recruiting firm to contact if your company is looking for qualified employees. Winston is one of the leading staffing firms in the New York City area, working closely with each job candidate to thoroughly evaluate their skills and experience. Give Winston a call today.