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Use Employee Referrals to Hire New Caregivers

According to the 2015 Private Duty Benchmarking Study from Home Care Pulse, the number one source of new caregivers for the 700 plus companies who responded to the survey was “internet – craigslist.org. Number 2 was employee referrals. This is consistent with the 2015 Private Duty Recruiting Study conducted by Leading Home Care and Caregiver Quality Assurance. According to our study, 74.43% of agencies reported using their Employee Referral Program (ERP) to recruit high quality applicants.While nearly three quarters of home care agencies have an employee referral program, not all of them find it effective. As we studied this issue we discovered a number of factors that influence the effectiveness of your ERP.What Makes You Stand Out?

What is an ERP?

An Employee Referral Program is a systematic process where current employees of your home care company can refer family members, friends, or acquaintances as possible companions, caregivers or Certified Home Health Aides. Your program may also be tapped to recruit other key employees such as scheduling coordinators, bookkeepers, administrative assistants, or other key members of your home care office team.

A successful ERP in home care has four cornerstones:

Communicate regularly with your employees about your need for caregivers.
Provide an easy-to-use system for employees to make referrals.
Operate an efficient, effective selection and hiring process so it is easy for the referred job candidate to come to work for you.
Recognize and reward your employees for referring new caregivers.

Why Institute an ERP?

There are five primary reasons why you should consider starting an Employee Referral Program in your company:

1. Low cost per hire. Referral programs cost $500 for exempt employees and $70 for non-exempt, versus $2,884 and $726 for print advertising, and even more for agencies and executive recruiting firms, according to the Employment Management Association’s cost-per-hire survey.

2. High-quality hires. Employees are unlikely to recommend people who they think are unqualified or unreliable. Research conducted by Leading Home Care … a Tweed Jeffries company in 2015 showed that employee referrals are the third most effective method of finding high-quality candidates, after nursing schools, and faith-based recruiting.

3. Decreased time in hiring. Employees are selling the company to the people they refer. Interviewers can spend their time evaluating a candidate’s background and qualifications. Employees also tend to recommend people who they know are ready to make a job change, which also speeds the hiring process.

4. An opportunity to strengthen the bond with existing employees. Referral programs acknowledge and reinforce the company’s commitment to rewarding the individual for helping the company.

5. Employee retention. An Ohio State University study shows that employees hired through referrals have a retention rate that’s 25 percent higher than that of employees hired through other methods.

Contact us today to learn more about how we can help you recruit, select, train and retain quality caregivers.

This article first appeared as “Get More Caregivers with ERP” a Leading Home Care blog posted on June 23, 2015.

About the Author: Stephen Tweed is an internationally known health care and business strategist, award winning professional speaker, and published author. He is the CEO of Leading Home Care … a Tweed Jeffries company. He can be reached at www.leadinghomecare.com.

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