Staffers across many It companies have won themselves iPods or Asian holidays, motorbikes or even a Maruti Swift. Clearly, employee referrals or buddy reruitment aer increasingly becoming bi-ticket incentives with staffers enjoying freebies along with hefty bonuses.
On its part, the company not only gets the kind of talent it is eyeing, but also manages to cut recruitment cost considerably, not with standing the high payouts. Recruitments through a consultant would typically cost in the last two years. Companies have realised that they can bring down the recruitment cost by the about `50%` through this system.
At the `$ 2.4` billion Juniper Networks, the referral system accounted for `50%` of the `290` employees recruited this year.
Referral bonus helps encourage employees to bring like-minded people to the company. This, in turn, will improve retention rate, said Junipur India MD. Besides monetary benefit, 'successful recruiters' within Juniper also hold a chance to win gift like motorbikes and flat screen `TVs` every quarter.
Referral system, corporates say , help minimise risks in a tight job market. Most companies allow employees to refer another person on the first day of the appointment itself in the form of a buddy list.
Besides lower costs, referrals help companies ensure the new recruit's sound credentials. Unlike an unknown resume, a referred person is considered to be more reliable as employes also tend to share a certain responsibility in this case .
What are the advantges of this types of source of recruitment ?

Explanation

External sourcesof recruitment offer the following advantage:
(i) Qualified personnel An organisation can attract highly qualified personnel through external sources.
(ii) Wiser choice External sources create a large pool of candidate to choose from, for the organisation.
(iii) Frest talent External source helps to bring frest talentor new blood into the organisation.
(iv) Competitive spirit New entrants and qualified freshers creates competitive spirit and helps to improve performance.