In this episode of WrenchWay Weekly, we discuss employees referring friends and family for job openings. Watch the full episode, or review the episode highlights below.

Do Repair Shops Have Employee Referral Programs?

A recent WrenchWay Insiders poll asked, “Does your shop have an employee referral program that incentivizes employees for referring friends/family for open job positions?” Let’s review the responses:

  • Yes: 32%
  • No: 61%
  • Unsure: 7%

Similarly, we asked some follow-up questions. Here’s how our Insiders replied:

Would you share a job opening at your shop on your personal Facebook or LinkedIn page?

  • Yes: 53%
  • No: 45%
  • Yes, but only if incentivized: 2%

Would you refer someone to work at your shop?

  • Yes: 75%
  • No: 25%

These answers offer intriguing insights. First, more shops need to create a formal job referral program for current employees. Next, shop managers may want to dig deeper into why almost half of technicians are reluctant to share a job opening on social media. Is this simply due to privacy concerns or just not wanting to mix personal with business? Or, are there other factors, like job dissatisfaction, at play?

The answers to the last question provide comfort in knowing the vast majority of technicians would refer someone for an open position at their shops. So, there’s a missed opportunity when you consider that most shops don’t have a formal referral program, and most technicians are willing to make job referrals. Let’s look at this some more.

The Value of Employee Referrals

According to ERIN, an app-based employee referral program, each employee referral can save a company over $7,500 per hire. At the same time, referred candidates are four times more likely to be hired than non-referred candidates. This means that adding referrals to the recruitment toolbox is a no-brainer.

Easily Create an Employee Referral Program

Let’s look at some simple steps that a shop can take to implement an employee referral program.

1. Reward employees for doing things that will help a shop find better hires:

  • Sharing a job post on their personal LinkedIn or Facebook page
  • Emailing friends and family about open positions by using a company-supplied template — make it as easy as possible for your technicians

2. Offer a mix of incentives: different things motivate different people:

  • Consider gift cards, cash, vacation days, and lunches

3. Use every opportunity to make staff aware of your employee referral program:

  • Review the referral program during onboarding
  • Post signs in the breakroom and restrooms
  • Regularly ask employees for referrals
  • Give shout-outs during meetings to employees who refer new hires