Companies Rely On Employee Referral For Hiring

Wednesday, 31 August 2011, 09:19 Hrs
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New Delhi: When it comes to recruitment, companies, especially in IT, banking and financial sectors, are increasingly relying on the reference of their existing employees as it reduces hiring costs and attrition rate, an industry survey revealed.

Almost 32 percent of the total hiring by IT and IT-enabled firms during the first six months of the current fiscal were done through employee referral, according to a survey conducted by hiring vendor consolidator firm MyHiringClub.com.

"Employers prefer this programme because it's very cost-effective for them and employees are dedicatedly referring candidates to earn some extra money. It's a win-win situation for both," said Rajesh Kumar, chief executive officer of MyHiringClub.com.

While IT and IT-enabled services are leading the chart, it is followed by banking and financial services with 23 percent, telecom and FMCG with 19 percent each, infrastructure with 17 percent and retail 11 percent of the total recruitment done through employee referral.

Under the employee referral programme, the companies generally pay a fixed amount to the employee on whose reference the hiring is done.
Source: IANS
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